Who is going to pay for your state pension/ care in old age?

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Apparently birth rates are falling, and this is putting future pensions (and I would imagine general tax income) in jeopardy as the population will proportionally age.

What's the solution? Should we just write off our paid for "right" to a state pension and state support for care in older age?

Does this change your view on public investment in supporting people to have children if you otherwise thought this was a personal choice and you should support/ pay for your own children?

AIBU to think that NI contributions for "pension" is essentially government mandated mis-selling and state pension will go out the window in the next few decades?

I don't believe they are all minted and never said so. I do maintain that with information and advice that an individual without the need to provide for children and works their entire life could have something towards retirement.

Well like I said, I’m clearly a total loser 🤷‍♀️ You and several posters have made that very clear.

I am currently sacrificing higher earnings to work as a TA supporting children who otherwise would be unable to attend school, therefore their parents would be unable to work.

Giving birth is not the only way to sacrifice for the good of the community. My husband works with disabled adults.

Perhaps some recognition of societal contributions beyond personal fiscal gain and your ability to get pregnant following a pleasurable shag might be in order.

Perhaps some recognition of the fact that some of us would have liked the chance to make that sacrifice would be nice.

What if one couple have a child who becomes a doctor, high earner, high tax payer and another couple have a child who is unable to work, never earns, receives benefits their whole life? Do the doctors parents get a pension but not the other parents?

Surely they can't means test pensions, I have been saving for years for mine and am not at state level pension value yet.

Surely you can't say to people don't save and don't worry as we'll cover you. So off you pop on your holidays and buy your new cars.

Versus save every month,do without the flash cars and holidays and we won't give you a pension.

Who would stick around in the UK on this basis?

Hard agree.

The Australian state pension is means tested and it works out quite well.
And that’s why so many younger people want to relocate over there, they feel like they have a chance to build a life

It depends on your circumstances. Life is more expensive in many ways if you are single, especially if you don’t have high earning capacity.

Yes. Privately putting something by. Exactly what I suggested we all should do when we work. Put towards something for our retirement.

He's always lived at home. His colleagues that lived out all managed their income well and had fun lives. You put 4% in a month and you learn to budget the rest. You don't "see" it go and you just take your income and deal with it.

The new state pension is £12.5k a year. How can you realistically live of that alone?

Whilst we still have this system. Those who've "paid in" with NI need something in return. Perhaps a rebate as well transition to a system where you yourself save for retirement.

Depends on your outgoings. Some people can, some people can’t. I have a family member who lives frugally and actually manages to save money while just on state pension. But that’s not the case for all.

He lived with you and his mates are on high salaries…Wow. However do they manage, poor souls?Putting away 4% must be crippling for the poor souls. 🙄🙄🙄

Who do you think you are to lecture people about their life choices? I guess it shows that privilege doesn’t necessarily mean someone has manners.

I hope someone comes along and makes you feel as worthless as you have tried to make me feel.

That's the difference. My son has to pay £1k per month for a bedroom in a HMO sharing the kitchen and bathroom. Plus his share of all utilities etc.

Lots of people have to move away for work these days if you don't live in one of a handful of big cities.

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That's not means testing. It's just being taxed in the same way income tax is on all other income sources. Means testing would be not receiving state pension at all if your income was high enough. Even at the highest rate of tax, 45%, you'd still receive 55% of your state pension, i.e. over half, at the moment, but if you were at 45% tax rate, i.e. over circa £130k of income, you don't "need" the state pension at all.

Does he have 0 money left over?

Sorry I deleted my post because I thought it was a bit long winded and confusing.

Yes some people know that pensions are taxed but because the state pension is below the tax limit and if they haven’t pension planned they may assume all pensions are tax free.

I’m on a Facebook group for public pension advice and I’m often amazed by just how little people know about pensions. So many assume they will not be taxed.

Not everyone is financially savvy.

Plenty of people do. My DM does, quite comfortably with no mortgage. It’s more difficult for those who rent. She’s never really had anything so she doesn’t miss luxuries that she’s never had. She doesn’t complain, and even recognises that it’s over double the amount a single unemployed person would be expected to live on.

I agree, if you've paid off your mortgage and aren't renting, and live a basic/normal lifestyle, it's perfectly do-able.

Also many people who only live on the state pension are getting extra help too. I have a family member who pays almost no council tax as he lives on just on state pension (and has savings below the threshold), is on 50% a water tariff, and has a cheaper broadband rate because of low income. So it’s not just about the money you get, it’s also about what you don’t have to pay. All of those savings add up to an extra £2.5-3k a year.

If someone had rent to pay they will get housing benefit if they only get the state pension (and don’t have savings).

A company I worked for in the early 80s wouldn't let you join the company pensions scheme until you were 25. I reached that grand old age and the pension wasn't worth the paper it was written on so I was persuaded by my then DP (now DH) to take out a private pension scheme.

Some years later I was at a different company who suddenly insisted I had to join their pension scheme and at that time the rules were I had to cancel paying into my private pension scheme and it was one that I could not move into their pension scheme which was incidental as one month later the bastards made me redundant.

I would have loved to move that private pension into one of the other company pension schemes I joined but was never able to due to the way it had been set up

Finally late 50s I decided to take the lump sum of approx. £7K as the monthly income I would get as a pension was about £7/month.

Some of the old pension rules were not in the interest of the person paying into it

Not so sure about that. My nan was 84 and mum is currently 85. I think working til 67 is pretty bad for my health.

Are you writing an article, OP?