To think the old style pensions should be capped.

[Blindering]

ok, I am in Ireland so unaware of how UK pensions function but my neighbour who worked as a college lecturer but retired in 2008 in his 70s gets 600 euro a week in pension, equivalent to 513 stg.
This is on top of a 150k pay off he got when he left the job which I believe all civil servants here were getting.

But aibu to think a bachelor living in a house with the mortgage long paid off has no need for over 500stg a week? Like what would one need the money for at that stage in life?

@Blindering

''This... why the race to the bottom? My parents have this Irish pension too and have a bigger pension than my UK salary... They paid into a plan with expected benefits ... the problem is someone along the line decided it cist too much so my generation with get less than half that, despite needing to work until at least 68 instead of 58 etc''

and prepare to be shot and nailed to the cross for raising this.

But what was the genius alternative?

A problem was identified - aging population, not sustainable to continue to pay out on previous pension terms.

Rules changed for those young enough to be able to plan for retirement according to the new terms.
Rules not changed for those close to retirement or already retired.

What do you think should have happened instead?

'' I’ll have a good pension because I chose to pay into one. Most people who complain about bad pensions chose not to pay into a pension.''

and if yo read the thread several people have come along and said they paid into pensions yet were getting bad returns on it.

We took our mortgage out in 1986. Yes the interest rates were sky high, yes we both worked two jobs and yes, we ended up owning our own home.

What makes you think that today's pensioners had it so bloody easy? I can remember years of freezing winters with no heating, eating once a day so the children could eat three times, and all new clothes came from charity shops. I can remember years of going to bed when the children did so that we didn't use the electric because we couldn't afford to. Of heating one room in winter and that being a stretch.

So yes, if things are easier now we fucking earned it!

@Blindering

'' I’ll have a good pension because I chose to pay into one. Most people who complain about bad pensions chose not to pay into a pension.''

and if yo read the thread several people have come along and said they paid into pensions yet were getting bad returns on it.

Lots of people with poor returns have made poor levels of contributions, others fail to keep a track of the investments of their pensions.

''Rules changed for those young enough to be able to plan for retirement according to the new terms. ''

but that's bollox, the rules changing did not mean house prices and the higher cost of living declined so the younger generation getting big pay cuts in Ireland don't have the change to just start saving even on permanent contracts as their pa y has being hit.

''What makes you think that today's pensioners had it so bloody easy? ''

mu post was never on al pensioners, it was on the examples of ones getting over 500 quid a week on top of a 150k pay off.

🤣 wow, get over it - nothing to do with you

I am a pensioner and mortgages were less when we were younger, but so were wages. What wasn't less was the mortgage rate. Most of the time we were paying our mortgages the rate was between 8 and 15%.

@Blindering

''When were mortgages a fraction of today?''

when the house prices were a fraction of today's prices.

And interest rates and other costs of living were proportionally much higher in comparison to wages.

You can’t compare exactly. It’s fruitless and dumb.

@Blindering

''Rules changed for those young enough to be able to plan for retirement according to the new terms. ''

but that's bollox, the rules changing did not mean house prices and the higher cost of living declined so the younger generation getting big pay cuts in Ireland don't have the change to just start saving even on permanent contracts as their pa y has being hit.

Yeah. Life’s unfair. Didn’t you know that?

''I am a pensioner and mortgages were less when we were younger, but so were wages. ''

yes but the houses were not 20 times the average salary in the 70s and 80s in places like the south east. In the 70s in London the rule of thumb was the house prices was three times the average salary.

I’ll ask you again - what do you think should have been done? What is your alternative to even out all this inequality you are upset about?

Very unreasonable. He's earned his keep, earned that pension and I'm sure you'd jump at the chance for anything similar. I say mind your business and focus on setting yourself up for retirement instead

ok means tests the pensions-cut them if need be. Ok it's unfair but as many other posters keep saying life is unfair.

Who will be paying for the means-testing infrastructure?

Given that the pensions are privately administered not a state benefit.

@Blindering

ok means tests the pensions-cut them if need be. Ok it's unfair but as many other posters keep saying life is unfair.

So a tighter cap on pension contributions, so instead of the person putting that money in a pension they either save it, or spend more money when they are younger.

You do understand that means testing a pension doesn’t remove the pension contribution, its just spent at a different time/in a different way. If I reduced my pension contributions I would still earn that money, I’d just spend it.

@Blindering

''They will have their pensions taken off them and their savings etc to pay for care homes if and when the time comes''

less than 1o percent or something significantly low go into care homes so I don't get why care always comes up on mn as a guaranteed thing when more often than not it' never needed.

Just because you don't go into a care home doesn't mean you don't need care. My MIL lives in her flat on her own, and has a care bill of over £1,000 per month. This on top of care paid for by the government.

And what’s a fair level in your means-tested opinion? How much is reasonable - what’s the ‘typical pensioner’ you’re basing this on?

Be careful - the more complexity you introduce into the system the more it will cost to administer…

@Blindering

''I am a pensioner and mortgages were less when we were younger, but so were wages. ''

yes but the houses were not 20 times the average salary in the 70s and 80s in places like the south east. In the 70s in London the rule of thumb was the house prices was three times the average salary.

Yes, and interest rates were 30 times what they are currently!

Get your facts straight OP. The standard of living now is vastly better that it was 50 years ago.

If you want a better pension, pay into it.

And stop being so offensively ageist, bitter and jealous.

@ajandjjmum

OP - say you save into an interest-bearing account, how would you feel if someone came along when you were about to retire and said there was more money in there than you needed, so decided to take some to distribute to others.

Would you be happy with that?

Are you going to answer my question OP?

Look, I get it.

Life’s unfair, you completely buy the ‘baby boomers screwed us over’ narrative and you think something should be done.

But you’re really uninformed, you don’t seem willing to listen or learn, to take on board the complexities of this. Macro economics is not your strong suit.

So this is all a bit pointless, really.

No, yabu, Its what he paid into. It's quite possible he started working at 15 or 16, so worked for over 50 years.

My NHS pension keeps changing, plus when I started work I could retire at 60. I'm pissed off its all changed, it's not what I signed up to.

''The standard of living now is vastly better that it was 50 years ago.''

then how come massive amounts of the younger generations can't afford their own house?

@Blindering

''The standard of living now is vastly better that it was 50 years ago.''

then how come massive amounts of the younger generations can't afford their own house?

In some cases maybe because they're not prepared to make the sacrifices. We paid 15% interest on our first mortgage - nomatter the house price, that didn't come cheap. So we missed a few holidays.

@Blindering

''I am a pensioner and mortgages were less when we were younger, but so were wages. ''

yes but the houses were not 20 times the average salary in the 70s and 80s in places like the south east. In the 70s in London the rule of thumb was the house prices was three times the average salary.

Mortgage interest rates were also much higher. Hitting 18% in 1978, averaging over 8% over the decade. Then in the 90s hitting over 15%. House prices plummeted, lots of houses repossessed. The end of the 90s and early 2,000s rates stabilised at a lower level, but as mortgages were cheaper and loans were readily available house prices soared, only to crash in 2008. Where I live, in Northern England prices have only recently passed their values in 2008, and then only down to the stamp duty freeze.