Not contributing towards a pension is at best foolish and at worst utter stupidity?

[BHouse19]

I was really surprised (and concerned) having met with a large group of friends last night that some of them aren't contributing towards a pension (two stay at home mums for two + years and one who has opted out of her work place pension).

So I'm just wondering, if you're not contributing, how are you planning to survive during your retirement? Projections tell us that the state pension (if it still exists as we now recognise it) is in no way going to keep up with inflation.

Your husband or wife may be contributing to one but if the marriage breaks down the value of this to you is going to dramatically reduce for you as a single person

AIBU in thinking that saving for a pension is one of our most important financial responsibilities?

@MiniGuinness how did you lose money in a "pension"?

I think you fail to realise that some people can’t afford to. They’re not stupid or foolish.

Not in the UK Spingly

And it happens all the time. Are you very naive? Or very old?

It happens ‘all the times? How? Where are we talking about? Who are these pensions with? more detail would be useful otherwise it looks a lot like unsubstantiated scaremongering

Well currently university staff are striking due to massive deficits. Do you not even read the news?

Or, gulp, are you a Tory?

@MiniGuinness not sure who you’re addressing there or why you assume anyone who asks you for clarification is a Tory

Of course I’m aware university staff are striking. It’s because of pension reforms which have inevitably hit many sectors (TPA member here - my pension contributions have hiked up massively but I get any more out at the end) I don’t like it - id prefer not to be paying more and more out every month - but the former systems were unsustainable due to increased ageing population. But this is not the same as ‘losing money in a pension’ which is what you claim happened to you. You seem very good at avoiding questions . (Gulp, are you a Tory? )

I dont get any more out at the end

As I said, I am not in the UK so slightly different. -- Although not much.

Because if you don't get more at the end. How are you not losing money?

Not 'don't get more', but don't get what you expected?

Ah right so you don’t mean you ‘lose money’ then?

Lose from what you are sold? Err yes.

My pension won’t be ‘what I expected’ when I first joined. Christ I was paying about 4 % of my income into it then rather than the almost 12 % I pay in now. So yes, the deal is clearly not what I ‘expected’. But it’s still way way better than to have opted out of the scheme or tried to save an equivalent amount elsewhere.

That’s why vague comments about ‘losing money’ in a pension are scaremongering. Unless you can substantiate precisely how you’ve lost money than frankly it’s a pointless comment. And the reference to university pensions is misleading because they are striking due to changing t and c. Same as teachers were striking several years back. Of course no one wants the t and c of their pension to become less favourable but it was inevitable because former systems could not be sustained.

That is categorically a different situation to ‘losing money in a pension’ - a vague statement which still hasn’t been explained

The op said it was foolish and utter stupidity not to contribute to a pension. The properties I own will bring far more in than the mis sold pensions (that lost me money) so my response is that it is not foolish, especially when this kind of shite happens.

So no I don't believe that saving elsewhere would have been worse for you

@MiniGuinness if it's not in the UK, I'm not sure it's relevant then is it? The UK has the PPF, FSCS, so unless people just make dreadful investment choices, without diversification etc, to lose £250k is pretty hard to do,

The current USS pension is final salary, like 1000s of pensions years ago were. Most now being fazed out as they are unsustainable. Longevity is a big reason and no one understood the impact this would have. They now want to introduce a defined contribution scheme so they know the payments required, it's the way all new schemes are set up.

You clearly have very little knowledge or understanding surrounding pensions.

I'm not sure what my political status has to do with it either and I'm not sure why my asking how you "lost" £250,000 has led you to assume that I'm "gulp" a Tory? Very very bizarre response!

I didn't lose it all. But that does not matter, I did not get what I expected. So still a loss (Common) I made a lot more out of property so was offering a reason why many people do not have a pension.

@MiniGuinness selling properties that you've owned for a substantial time will have MASSIVE capital gains tax payments.

Properties do reduce in value,
Properties are illiquid
Properties are not IHT efficient
Properties do not give you tax relief at source
Owning just property is not a diversified portfolio

But you crack on!

When you invest in a pension (personal not FS) you can invest in a wide variety of assets, funds, cash etc including property funds or actual commercial property.

But you sound so uninformed it's shocking.

You’re wrong @MiniGuiness
Employer contributions for teachers and university pensions are well over 23% now, I’d like to know where else anyone is going to get that sort of deal. Of course none of us like that our contributions have gone up too but we also know which side our bread is buttered which is why we remain in the scheme!

And yes I have property too; dh and I have always believed in a range of investments but frankly the pension is by far the best part of it.

I didn't lose it all. But that does not matter, I did not get what I expected. So still a loss (Common) I made a lot more out of property so was offering a reason why many people do not have a pension.

A pension is just a wrapper for investments, the same as an ISA or a bond!

But with tax advantages and not being able to access until 55.

You talk absolute nonsense! You probably decided to put all your money into one high risk investment in the "pension" and lost it, not because it was a "pension" but because it was a bad investment. The same would've happened in an ISA or a direct investment.

Hopefully that makes sense but you clearly don't see a "pension" as just an investment vehicle.

@MiniGuinness you need to stop talking about things you really know little about.

@Acciocats I have a feeling that @MiniGuinness is never going to admit they're wrong...

Yeah, maybe. But it's working ok.
Also how do you know, considering I don't live in the UK Sprinkly? Maybe you are just considering your own shite pre-Brexit fate?

@MiniGuinness stop being politics into a non political thread?

Why are you talking about the UK USS pension scheme then? If you don't live in the UK?

I'm stating all those other facts to show UK people how idiotic your notions are.