Please tell me I am not the only oldish person without a pension plan

[QuentinLettsisAbitofAtool]

Not a TAAT well it is a bit but sod it

I'm having a bit of a panic attack brought on by the MN survey about pensions. I don't have one, have a big mortgage, not due any parental inheritances and am in my 50s.

Please tell me I'm not alone as that might make me feel less dumb!

Oh and I put "oldish" in the thread title because I mean old in terms of a pension. Twenty somethings who don't have a pension don't fit my criteria!

Sorry Wordthe, but I think you're being pathetic. The interest rate is just over 3%, they're totally upfront about it, and you decide if it's acceptable or not. That's how financing works - except for other loans, ie. mortgages, you don't get the longterm certainty.

There are very few of us able to go through life without taking loans of some sort, and we have to do so in the knowledge that a company will be making a level of profit from us.

If your house is your pension don't vote for Corbyn as he is going to triple the council tax. If you can't afford to pay it the idea is to drain it from your equity. You will not be able to move/downshift/release equity.

Well, he will be releasing the equity. To the government.

If it's a choice of selling the house and going into rented accommodation that is not as nice as the home they have or doing equity release I can totally see the benefits of doing ER. I can imagine any potential beneficiaries getting annoyed about ER but so what.

Equity release is an option for those who own their own home.
Many do not.

The reality is that the whole finance industry makes its money from the top 10% and does not really give a fig about the bottom 50%

Yes, Teacher. The Grand Plan is a Land Value Tax which for our modest house would apparently be £12K a year (according to some leaked papers a while back). As you say, most people couldn't pay that every year so the debt would roll up and the sum taken from your estate upon death. I guess if the council inherited your entire house they could use it as new housing stock.

Exactly Bats. And as potential beneficiaries, my DC just want the people they love to have as much comfort as possible in their latter years - using their own assets. Any beneficiaries getting annoyed about this, do not deserve to be beneficiaries imho.

ER would not be a choice for DH and I.

When I look at downsizing, it would be difficult to downsize much without having no money left. There is not a lot of difference in price between our bog-standard house and a bungalow. Going from a house to an over-55s flat... well, the world would be rid of two people as dh and I would kill each other within the hour.

Make sure you don't buy an annuity then Irma!

That’s fine for Corbyn as he is sitting of a pension pot of £1.6 million which I doubt he is going to share with us who are going to be lucky to get a reduced state pension.

If your house is your pension don't vote for Corbyn as he is going to triple the council tax.
Link please.
And bear in mind that Band H Council tax in Westminster is lower than Band D in most of the rest of the country
and that the council tax on a £50m mansion is that same as on a £600k house, I see no real problem with making council tax cover the cost of providing services
like social care for the elderly

Yeah downsizing is an option for well off people. If you live in a terraced house, then a flat that accommodates someones needs as an elderly person is not any cheaper.
I actually get quite pissed off at "advice" I frequently see on MN, that in reality only applies to the well off.

Talkin Seriously there is so much rubbish in your comment.
Council tax can cover services if services are pretty shit and almost non existent. Especially in poorer areas.

Irma
Land value taxes are excellent things - they work well in most other OECD countries and the sooner they come in here the better.
Not sure where you get £12k for a modest house though. Sounds like right wing tabloid frenzy.
By my maths I have studied it in some depth only houses on Band G and above would pay more.

frankly anything less than 25% of your salary a month going into it will not be enough to live on

I think you’ve covered over 90% of the British population there. I put in about 7.5% and my employers 11% and I will retire on about half my existing salary. And this is towards the top end of salary scheme contributions.

25% of your salary!! And how do we pay the bills then??

I’m 11 years into my current job (public services) which accrues a pension, and already in receipt of one from the RAF which is index linked from age 55 (get more the).

I have no doubt whatsoever that weren’t not for these careers I would have nothing as I’m crap at saving.

abacu
Council tax can cover services if services are pretty shit and almost non existent. Especially in poorer areas.
I do not know how thoroughly you study the council tax database each year
I spend about two days analysing it and its implications every year
LVT would be a good thing for poorer areas as it would move away from the stupid 2% on Band D figure that is beyond meaningless.

Oh God - I don't want to live in accommodation specifically for over 55s! I want to live surrounded by all ages! And I don't want a bloody grab rail by the bath til I actually need one.

Talkinpeace Yes I know about council tax and I know that most poorer areas do not raise anywhere like enough to support existing services that are already being cut to the bone.
Better off areas often get decent business rates in their coffers so are more protected.

Better off areas often get decent business rates in their coffers so are more protected.
NO
Because almost all Business rates get passed straight to Whitehall.

An LVT would allow poorer areas to gain income from the businesses and properties in their areas in a non regressive manner (Council tax is incredibly regressive) and stop tax avoidance by the super rich using offshore methods.

Westminster’s council tax rates are set by the local authority not central government in, in the same way all local authorities set the council tax rates. Westminster’s valuations have not been updated since 1991 so the massive value increases have been ignored for council tax purposes.
Westminster needs a complete new valuation then they can recover more realistic levels of council tax. That would enable the government to reduce their funding which could go to more deprived boroughs.

justkeepswimming They will rent to someone with £200k in assets who is retired. You aren't prioritized on the list of your current accommodation is suitable (disabled elderly get priority over elderly who aren't disabled with £200k in assets) so you will wait a long time if they don't have units available. If they have units available they will rent to you.

Talkin - a Brexit proof tracker would be the s&p500 tracker. Vanguard is good for low fees.

You could also invest in Europe but they are going to be impacted with the Uk leaving. I wouldn't put money there right now myself.

UK companies with strong financials which won't be too badly affected by Brexit in the short term are the blue chips. Fidelity has a good tracker. In the long run I think U.K. companies will be better off if our politicians can get their act together.

Any extra tax put on a house or flat will just get put on the rent charged to those that rent the houses.

All it will make is rent more expensive

Talkinpeace Many better off. areas have a voluntary add on to business rates that go to the LA.