Pensions… again

[GoodnightAdeline]

https://amp.theguardian.com/money/2024/apr/08/uk-state-pensions-benefits-changes-april-triple-lock-rise

Another pension increase we can’t afford when working people are grappling with the cost of the country.

What will be the endgame in all this? Where will we be in 20 years?

I’m not your mate.

Ah you hurt my feelings! Touchy now you’ve been found out talking shite?

I have to say, i sincerely hope you don't speak to your clients as you address posters on here who dare to challenge you.

Assuming you actually are a CFP ? though given some of the numbers you come out with, with no mention of charges, you probably aren't.

It’s not me who’s talking shite. Anyone can say they’re anything here.

Anyone who suggests an annual growth rate of 5%, compounded, with no mention of charges or inflation, over 40 years, is being very disingenuous.

But even if someone retiring right now with a pension pot of £221k, will have (approx) an income little more than the NMW (NSP + Private Pension) will lose the WFP and not be able to access any form of pension benefits, even if still paying a mortgage or renting.

Its not a great deal of money.

Millions of workers wont retire with anything like a pot of £221k.

I was referring to the "ideal" iteration of your scenario for a minimum wage worker being able to scrape together a works pension. I'm glad that you don't deem it to be ideal.

5% after charges. Perfectly reasonable for a 60/40 medium risk portfolio averaged out. There are many low cost solutions. Inflation will increase the level of contributions and erode the real terms value therefore I have projected in todays terms. Neither of those figures are disingenuous.

A £221,000 pension fund could be accessed flexibly to provide benefits where needed. A person may decide to spend more while they have their health, travelling etc. and be more frugal in later life. Likewise an annuity could be purchased.

I use minimum wage statutory minimums as an example to show that building a good retirement pot is entirely possible if you make it a priority from early in your working life.

Its just frustrating when people who know little of a subject try to tell an expert they are wrong. Admittedly, when discussing these matters with clients I must bite my tongue. But ultimately, if they don't want my help, then I don't need them as clients. My issue here is the spreading of falsehoods.