Parental income

[glassdarker]

So, context, just seen 10% pension increase.

At same time I've been talking about doing something jointly with my mum and dad. So as a result we talked about income. My parents worked in manual/ administrative roles, neither went to Uni, but worked hard all their lives. Retired ten years ago, own house and car. I appreciate that many pensioners won't be in that position.

They both have small final salary schemes (one less than 10k, one less than 20k). They both get full state pensions. After normal bills their disposable income is a 2k a month. 2k a month ! I am blown away !

But bloody hell we are both higher rate tax payers and we are counting every penny (though we have a lot of extra spend due to a disabled DC). But AIBU to be a bit shocked by the difference in how we are experiencing the cost of living crisis ? I am glad they are doing OK and we don't need money from them but I am still a bit jaw dropped by this... and fantasy spending even 1/4 of that monthly disposable income !

"one less than 10k, one less than 20k"

are not small work pensions.

As they also have full state pensions, their total income is roughly £45, 000 before tax.

Exactly this.

People will have to cut their cloth accordingly. It's not realisitic in the 21st century for everyone to expect to be able to afford children and a house and a comfy retirement AND all of the gadgets, tech, perks and travel that have become expectations.

A realistic adjustment (downward) of expectations going forward; mainly as I said because of the global economy, competition from 7.9 billion other humans, dwindling natural resources and technology that is fast erasing the need for low-skill human labour. It's going to get rough out there.

People are going to have to get use to the idea of childfree living as a norm, of houseshares, mutliple generations under the same roof, lifelong roommates and other non-nuclear family arrangements for housing. Which actually is the norm in human history; the single-family dwelling is a relatively brief blip over the past 100 years or less.

Pondering. Oh, the "I'm confused " tactic. It's begrudging, be honest.

People will have to cut their cloth accordingly. It's not realisitic in the 21st century for everyone to expect to be able to afford children and a house and a comfy retirement AND all of the gadgets, tech, perks and travel that have become expectations.

But why do only younger generations have to cut their cloth?
I'm not sure where you get the notion that young people expect to have all those things?

Because many of us older ones cut our cloth when we were young.

No pensioner I know moans. All of them give their adult children money, some of them in the scores of thousands. But hey, we're all greedy selfish fuckers who live in the same house we bought which just has a bigger price tag so we're all obscenely wealthy. Got it🙄

We already have enough of that as it is, with imprudent people reaping benefits paid for by the prudent.

So pensioners who are renting & need pension credit are imprudent?

Yes, I was lucky to be born with a decent level of intelligence

🤔

@Iwantmyoldnameback what part do you not understand? The younger generations will be cutting their cloth forever!

We all cut our cloth forever.

This. OP - if you think those are small pensions you are in for a shock. Just under £20k pa in a private pension is very good.

I recently retired. The main reasons we are comfortably off are that we have paid off our mortgage and our two sons are financially independent. DH had a public sector job and still works part time 2 days a week, his pension is really good but that is the way in the public sector, shit pay but great pension. I was private sector and paid high contributions into my pension fund from my early 20’s onwards. My pension is 25% of DH’s. We paid into our state pensions - it is not money for nothing.
Just remember that the day you qualify for your state pension you don’t transform into a little old lady. You still feel the same and need the same thing. We pay tax on our pensions, we have both slogged along for years in unpopular sectors. Not sure why we are criticised so much.

There are wealthy pensioners and there are impoverished pensioners. The gap between, say, the top and bottom 10%s is only going to widen over the coming decades. The state pension will have to become targeted at some stage, otherwise it will become crippling on the economy. I’m in my 30s and am a reasonable earner, and I am under no illusion that there will be a state pension for me by the time I retire. How this is achieved though, given the short-termism in the political cycle and the power of the grey vote, is beyond me

Which point? That OP and her oh earn around 100k between them ( higher rate taxpayers are on at least 50k, they both qualify) and are astounded and resentful that her parents have a whole 24k a year after a lifetime of work and saving?
Poor OP. What mean, greedy, selfish fuckers your parents are. Be sure to let them know when you send your 'poor me' invoice.

Not at all- I don’t begrudge anyone the home that they paid for outright, the pension they’ve been contributing to for years.. any of that. I DO wonder why pensioners get the Pensioner Cost of Living Payment without means testing when plenty don’t need it. I do wonder if there is any justification, other than the fact that pensioners vote in big numbers, for the triple lock.

Means tested benefits are much more costly to administer.
Better off pensioners pay taxes.
They should be taxable, that'd help.

They means test loads of things & Im sure it will eventually come in for the state pension or they will do it by stealth & keep moving the age out.

Working pensioners should also still pay NI

I DO wonder why pensioners get the Pensioner Cost of Living Payment without means testing when plenty don’t need it

Do you mean the heating allowance? mine's going partly to charity donations, partly to foodbank donations and mostly in savings for next year's bills. I'm a single person household so I don't have any fallback if bills are larger than expected.

Do hope that's OK.

Myriad threads here, for one thing, of people lamenting how hard they have it.

Obviously pensioners should live within their rightfully earned means, and their means include living cost adjustments that are rightfully part of the pension scheme.

Obviously pensioners should live within their rightfully earned mean

What does rightfully earned mean?

Goodness this is becoming a nasty place.

My elderly parents worked hard all their lives, are totally reliant on the state pension, live in social housing and have nothing really.

But I'd feel just as defensive if they'd been luckier and ended up with good pensions and property.

You guys just hate them all.

That they paid into the scheme according to the rules in force during their working years, with a specific expecation of what the payout would be in retirement. The pension is not a handout, (as benefits are), it is a contract made with earners to provide income in older years.

So you disagree with the fact they are moving the age out?

What about pensioners who didn't pay enough NI?

They do.