To think the govt should just scrap state pension

[DexyMidnight]

... For new entrants.

Everyone born after say, 2006, should pay less NICs and be mandatorily enrolled in an Australian style pension where you must pay 9.5% of your pre-tax salary into a pension fund. Even part-time, term-time, ad hoc workers.

I worry often about whether the state pension will exist when we are older. Will it be means tested? Can it go on with an ageing population?

A solution along the lines of the above would let the younger generation know where they stood.

There is a huge pension problem coming

1. People living longer means more to pay out in any one year
2. The robots are coming meaning there will be less people in work paying NI to service these pensions
3. People aren’t having as many kids, don’t want immigration so ditto above
4. Not as many people are buying houses so will still have rent to pay when on pension. How on earth can you afford rent when on pension? Without more state help that is.
5. Fewer occupational DB pensions to supplement the state pension so more pensioners in poverty

All a bit depressing! I’m 48 and have been in a public sector scheme so very lucky but have moved out of public sector and I’m shocked at the young people around me in my new job who are making no effort at all to fund a pension

The very first state pension receivers did not pay national insurance. But like my grandfather, they fought in 2cworld wars for very little money. The problems began when successive governments then began to use the NI contribution from current workers to pay the previous generations pensions. Thus carried on until the 1970's or there abouts. Then people like me had to start work for a minimum 48 hour week at 15vor 16 years old and though earning rubbish wages of between £8 and £15 per week we had to pay NI. Now those of us in our 60's have to work and pay in for at least 50 for or more to get 35 years pension. This is because we now have to pay for our pension and the previous generation so that, rightly though done the wrong way, the younger generation are paying forvthei own pension. You can logininto you NI account with HMRC and see how many years of ZNI you have paid in do far. Also the lies about everybody getting full pension whatever they paid are not born out by the facts of the national insurance record. If you do not work enough hours to pay NI nothing will go into you record. I have now worked full time for 45 years but I cannot have mybpensiob until I am 66 and worked for 50 years. To say I should not get it and someone else paid for it is not fact. It is government lies. I was told that as long as I work and earn more £ 9000 per year I must pay NI so that other people who don't work can get benefits...by a tax official.

The Problem with the state pension is its never been funded, but that would cost too much to do, and while the country has the highest levels of debt ever it not going to happen any time soon.(although the debt figure is just starting to turn a corner after years of pain of austerity for many and damaged public services).

But no, the state pension should not be scrapped, we’d just have to pay for those without any provision anyway in another form. At least if you can see how small the state pension is it should encourage people to save themselves.

By “funded” I mean a funded scheme where a huge fund of money is maintained to pay for future pensions .

The LGPS is a funded scheme which costs the government around 20% on top of salaries each year in employer contributions. Investment income supplements the contributions.

Police and fire schemes are not funded and cost much more than that, because all pension payments are paid from the police and fire budgets .

State pensions also not funded.