To think this is a real possibility in the future? (State pension)

[TheOtherBoleynSister]

I am 34 and ever since I started working people have said don’t rely on there being a state pension. So I’m pretty pessimistic about it.

I honestly believe that for people under 40, the universal state pension (paid regardless of income or capital to those who have paid NI for a certain number of years) won’t exist. That there will be no qualifying ‘age’, and instead older people will be the same as the rest of the population when it comes to benefit eligibility ie. Have to be certified as too ill or physically unable to work, and get UC if income is low and savings are below £16k. In other words, being a certain age won’t entitle us to any benefit like it does now.

In this awful very bleak future, older people who can no longer work, who have savings/money above the threshold or private pensions, will need to rely solely on the money they have unless or until they get to the point where they now qualify for benefits.

Of course I don’t want this to happen, but with all the stories about the cost of pensions and the rising number of older people it feels inevitable. But the reality is many people’s private pensions won’t be nearly enough to last (but maybe they will be forced to spend them before any help), and there’s also talk in the press of some wanting to do away with ‘generous’ public sector pensions (which are not as generous as they used to be, albeit they are better than a lot of private schemes).

I am quite aware of pensions due to older relatives and friends who are of that age, but many people my age haven’t a clue about them or how they work. I do think we will be seeing a real disaster in less than 30 years, but people don’t care as it’s someone else’s/ tomorrow’s problem.

I think the general population needs a reality check on private pensions, the importance of starting early and the amount you need at accumulate if you want a comfortable retirement.

So we’re in our late 50s and have paid in to private pensions since we were 21. We absolutely couldn’t have paid in more alongside raising kids and paying off a mortgage and being debt free.We now have to pay for childcare,uni, increasingly more private healthcare for various family members , dentistry on top. We are not frivolous with money and were really poor for many years when the kids were younger. We rarely went on holiday and have always had an old car we ran into the ground. I repeat we absolutely could not have paid in more.

Our private pensions aren’t that great, mine is shite and we will need the state pension.

I’m not suggesting you shouldn’t get it! I’m suggesting people who don’t need it shouldn’t get it. It can’t continue to be a free for all where everyone receives the same amount.

The average Civil Service pensioner receives £9,874 per annum. You shouldn't believe everything the Daily Mail tells you.

Who are you to decide who does or doesn’t need it?
but agree it shouldn’t be a free for all, where people who could work but haven’t also receive!

At what point did I say I should get to decide?

We are probably deemed as middle earners with my husband dipping into higher rate at one point. We always paid into pensions but will need the state. Where are you going to cut off. How are you going to incentivise those in the middle to take stressful jobs if they will be penalised at retirement.

I don’t know. And im very glad it’s not my job to decide. As I said none of this is fair but numbers aren’t fair and they don’t lie. If we don’t want the welfare state to go bankrupt we need to start thinking about it in terms of numbers not in sentiment or what we were promised 70 years ago.

I’m suggesting people who don’t need it shouldn’t get it.
how are you quantifying that need?

I’m not. That’s not my job.

I agree with this.
Both my parents haven't lived in the UK for over 30 years, but have just started claiming their UK pension, in addition to a full pension in the country they emigrated to. And they don't even need any of it..

It’s not about fairness but reality. People are not going to live a life of stress doing jobs that will bring them over any pension threshold.

Yes I think only those living here who have paid taxes here the whole time should get state pensions alongside the welfare sector.

AFAIK the state pension in Australia is means tested. At least that’s what we gathered from a retired friend in Melbourne, who told dh he received $0.

No party has indicated removing the state pension

tinkering at
state pension age
triple lock
pension credits
prescription charges
bus pass age

sure

removal - no

all we can do as individuals is work out our own financial needs and wants and plan accordingly and vote for political parties which we feel
best represent our interests

Well that’s definitely something the gov need to make public so nurses, teachers, social workers and all public sector workers are aware that that even in retirement the gov and other members of the public still really do see them as “public servants”. Very much agree How are you going to incentivise those in the middle to take stressful jobs if they will be penalised at retirement.?

Absolutely while seeing non contributors get pension, pension credits, free this and that, housing benefit, council tax benefits, free bus passes, winter fuel payments….

What about all the unpaid carers? No one chooses this life. I have been caring for years now so I have no private pension. Many must also be in this position. I don't worry about it because it's out of my control.

Yes I think so. The people who have contributed won’t get anything and it’ll be the lifelong spongers who do better. Society has shifted massively this way already

scrap the triple lock now

have a honest debate about what tax people want to pay as the vast majority do not pay enough for a state pension and the NHS.

If taxes are to increase they can’t just be on income.

Young people are already not having dc as it’s too expensive.

We also need to tackle the distorted housing market.

Isn't this what the Assisted Dying Bill is for?

I think it will be means tested and your state pension will be reduced by a personal pension.

Another 38 year old who assumes I won’t have state pension. Currently have a very good public sector pension trajectory (between both DH and I), but do wonder how sustainable that will actually be long term, I understand the frustration at public sector pensions. I’m really scared Reform are going to come in and obliterate CS pensions.

I don't read the Daily Mail. The point I am trying to make is that there is a huge difference between the Civil Service and Public Sector, the CS being a subset of the PS. I have worked in the CS, PS and the private sector and the private sector provides me with the best pension by far.

A question for all those saying that they don’t think the state pension will be available to them - do you know how much you’ll need to save to replicate it?

For someone aged 30 and saving until their projected state pension age of 68 would have to set aside about £234 a month into a pension, assuming 5% investment growth after all fees, in order to achieve a pot worth the £299,325 needed to recreate an income to match the current state pension.

This is an illustration, growth not guaranteed. Given the col and rents how many can afford to do this? Also this is the minimum because the SP will give you a basic living standard, so if you want more then much more needs to be saved.

What I can’t get my head around is that there are swathes of people who are paying no tax or very little. They will literally get benefits from cradle to death. This means not worrying where the money will come from, guaranteed rises (benefits rise with inflation) etc. Plus they get all the extras such as heating payouts, subsidies on internet/Sky etc (yes, the Sky operative asked me last week if I was on UC as I could get discounts).

We are in a situation where working on a middle income is just not paying especially if you can’t afford a house as you will be paying rent until you die (not sure how you’ll do that without working).

So a section of the population that keep the country going, can’t afford childre, don’t get benefits, working until they die to pay for people who never/hardly ever work.

For this reason they cannot afford to remove the state pension. Taxpayers (of ALL salaries) are literally squeezed dry. Meanwhile on a mother thread we’ve got a family of 7, 1 person working 1 day a week wondering how they’ll take their children out for the day because free vouchers in the school holidays are being cut. We’ve got this government encouraging more children by lifting the 2 child cap.

Sorry but it doesn’t make sense or add up.