To think we are heading into a pensions disaster

[She11y]

I asked ChatGPT what the median pension savings were for someone in their mid 40s and I got the below reply:

Ages 35 to 44: The median pension pot is approximately £30,600.
• Ages 45 to 54: The median pension pot increases to about £81,200.

This website has a similarly sobering statistic - average pension pot for 50-59 is £96k.

https://www.nutsaboutmoney.com/pensions/average-pension-pot-uk

These are averages and the number will be brought down by some people who have zero pension savings but it's still a very low amount.

How are people going to survive retirement. There aren't many jobs for people the wrong side of 50z

Why does anyone ask a chatbot questions instead of looking up the answers and getting facts instead of nonsense that may sound like facts? @She11y

Based on the current state pension and tax rate, I'll have circa £33k per year pension.
I'll likely be renting though, so no idea how I'll fare.
I'm working on retiring overseas so the pounds will afford me a better retirement 🤷🏾‍♀️.

I'm 50 and worked for the NHS for 27 years. Pension from the start. Just looked up how much its worth and had the opposite reaction. I wish I'd looked it up earlier and thought about topping it up.
I'd assumed 'long time working for nhs on band 8 salary ' would equal not worrying, but a change in schemes and p/t work to fit round dc mean it's not half as good as I'd hoped.

Soldiers don’t contribute to pensions….someone has been telling porky pies.

How are people going to survive retirement. There aren't many jobs for people the wrong side of 50

This isn’t the case at all in my industry. I don’t plan on retiring at all, I just plan on working less. Loads of people in my industry work into their 70s.

Yes, it's terrifying, especially that so many people are sleepwalking into it. State pension age is going to keep on increasing (and I think life expectancy will decrease, given obesity levels), until we get to a point that you basically can't retire if you don't have a good private pension. Add in to that that the state pension is very likely to become means tested as even the current national cost is unsustainable now, nevermind in the future. Which will basically make the state pension a form of benefits.

There is such a huge range of private pension pots, and I suspect you're correct that the average is being dragged down by a lot of people with almost no pension at all. There are lots of people working for small businesses who only get the minimal employer's contribution and only make the minimum employee contribution as well. And it'll lead to a practically worthless private pension pot.

Another massive problem is the fat, final salary civil service pensions. They're practically going to bankrupt this country, and they're far more generous than any private sector pension. I just can't understand how the government can allow them to continue.

Some people are going to have more money than they know what to do with in retirement, many, many others, won't even be able to afford their council tax and water rates.

Because most people put their kids first and don't want their kids to have debt??

Realistically this has been an issue for a while so the long-range economists will have done some planning. Housing prices will come down, as people die, and the population decreases and some people get an inheritence.

I personally have only paid the minimum into my pension, but am choosing to invest in property as passive income instead, but everything is a risk.

The second they put up those university fees it was always going to be an issue.

I worked every holiday in a factory back home, then took the cash to uni. I studied a science degree with no capacity for a term time job.

I have a small pension pot but 4 defined benefit pensions. Where do I figure in their stats? It’s made up drivel.

This is such a weird thread!

Mumsnet is a weird forum at times. So many threads about complaints of the state of Education and the NHS and then we have posters on here arguing yet another root cause of problems is the TPS and the NHS pension scheme. The TPS has already been restructured since I joined in 2000, so fuck around with that, and I’ll fuck off.

I think this is what will happen- pensioners will retire abroad where there pounds stretch further.

Those still in the TPS are receiving very high Employer's contributions. The old style public sector pensions are no longer sustainable for many employers and a seismic shift from defined benefit to defined contribution is already taking place.

I have a good public sector pension coming in the next few years. I am 64. I transferred in my private sector pensions from before dc when I could and have the equivalent of three quarters of a full occupational pension. If I don't take a lump sum, it will pay me about £47k - just under half my salary. If I take a lump sum it reduces to about £34k. Either way, if I die within a year or two DH will get a widow's pension of about half. If he predeceases me, it all goes pop. His private pot, however, is available for draw down and inheritance and can be passed on.

I am very lucky to have a public sector pension. It is as good as it is because I was rigorous about pension contributions in my 20s and early 30s.

As we live(d) in London the public sector pension arose because I chose to work locally for the DC/life balance. In London public sector pay is not competitive and that work/life balance came at the cost of about £20/£30k per annum.

I would gently venture that provision for old age is a matter of personal responsibility and that pensions need to be prioritised.

I'll look into it, although housing benefit is not going to cover it I wouldn't think.

I have a good salary (6 figures inc bonus) but never really allowed for lifestyle creep as am naturally pretty easily pleased, drive a 10 year old Clio, live in a small bungalow etc... Not a single one of my acquaintances could guess what sort of income I have.

During COVID I got into the FIRE (Financial Independence Retire Early) movement and became even more focused.

So have been contributing really aggressively as my pay has risen. Even through paying for two kids in childcare etc..

Unless we have a 1920s style market crash, I'll check out from workforce as soon as I can get my fingers on my pension. Possibly earlier as am building up my stocks and shares ISA too.

There's a few factors at play here for those relying on DC pensions - ability pursue a well paid career (which has an element of luck and privilege and I don't know what will happen in the future with AI etc), and a mindset focused on long-term goals and delayed gratification (which comes easily to some, and some can learn).

Work colleagues and friends around me have much more lavish lifestyles, the cars, the houses, the constant new kitchens, sofas, excessive holidays etc... And as all of that has to be paid for from post-tax income, it probably equates to at least £20k of annual pension contributions as these go pre-tax (especially stark difference as higher rate tax payers).

We still do holidays as a family of 4, run two cars, eat out etc... So it's not a life of misery, just more a life of two people on £40k pa rather than much higher salaries.

I think a lot of higher earners are totally sleepwalking into poor retirements and wrecking the planet along the way with over-onsumption.

Yup, if you’ve paid off your mortgage, no loans nor leases, and don’t have an expensive lifestyle, you can live on very little. We live on £12.5k each aged 60. £25k in total. That still affords us the type of holidays we want, basic diy and home maintenance, runnng costs of 2 cars, etc., basic sky package, mobile phone data packages, groceries, occasional takeaway, etc.

We’ll have no problems living on two state pensions.

How do people think state pension will end? A cut off point? Say those born after 1980 won’t get it so need to make alternative arrangements or a reduction on amounts until it phases out? Or a complete and sudden end? What will happen to NI? Will it stop? I’m 48 I assumed I was fairly safe for state pension but now I’m not so sure.
My parents never had private pensions , my dad had a small work pension. They get about £2200 a month but with no mortgage, low living expenses (by choice) they save around 1.5k a month.
i grew up with the belief you didn’t need extra pensions bad state was enough to live off. My pot is projected to be 40k and dhs 250k at retirement. I assume d with that plus state we would be fine now I’m not so sure

This is why public sector pensions are predicted to be in SURPLUS in the imminent future.... Pay (and contributions) have just increased, the liability wont increase for decades, the argument that public sector pensions are currently a significant pressure on the country's finances is incorrect.

Theyre also an important part of the total remuneration. If my pension, or employer contributions get cut without a commensurate raise in baseline salary, i'm off to work entirely in the private sector.

Today working in holidays won’t bring in anywhere near enough to pay student accommodation which can be £150-£200 per week, often plus bills, then you have food, clothes, study materials, socialising, hobbies, etc. Unis charge for printing and copying and don’t issue lecture notes on paper. Uni clubs and societies charge for membership and events. Uni gyms charge for membership and usage. The maintenance student loans don’t cover costs anymore. So realistically you have to work during term time as well as holidays and need to take full loans and still need parental support. Times have changed since your days!

It's coming before then. Gen X will be there first.

This is hilarious £800k will give you a minimum of £40k if you want to preserve the pot. Most people want a income to enjoy and will spend it down before age 80 on a higher income

I think it will be means tested.

https://www.bbc.co.uk/news/business-68222807

https://www.bbc.co.uk/news/business-68222807