Teachs, Doctors Shun Pension Scheme
Discussion
"Tens of thousands of young teachers and doctors are shunning their gold-plated pensions because they can’t afford the contributions"
https://www.telegraph.co.uk/money/pensions/private...
Seems very short sighted to me. .
Tight finances? I have been there. Late 20s. Non working wife. Young kids. Mortgage, car loan.
Living from paycheck to paycheck. Second hand furniture. Holidays in my parents caravan.
It never crossed my mind to come out the pension scheme.
Especially as I assume contributions are before tax. So I assume any additional income freed up by coming out will be taxed at their top rate
https://www.telegraph.co.uk/money/pensions/private...
Seems very short sighted to me. .
Tight finances? I have been there. Late 20s. Non working wife. Young kids. Mortgage, car loan.
Living from paycheck to paycheck. Second hand furniture. Holidays in my parents caravan.
It never crossed my mind to come out the pension scheme.
Especially as I assume contributions are before tax. So I assume any additional income freed up by coming out will be taxed at their top rate
What did the junior, sorry 'resident', doctors do with the fat payrise they got from Starmer a year ago?
Google AI: 'A junior doctor's salary in England typically ranges from £32,398 to £63,162 per year. This range is for basic pay and can be supplemented by various allowances and enhancements.'
I suspect they're just whining for even more.
Google AI: 'A junior doctor's salary in England typically ranges from £32,398 to £63,162 per year. This range is for basic pay and can be supplemented by various allowances and enhancements.'
I suspect they're just whining for even more.
irc said:
"Tens of thousands of young teachers and doctors are shunning their gold-plated pensions because they can t afford the contributions"
https://www.telegraph.co.uk/money/pensions/private...
Seems very short sighted to me. .
Tight finances? I have been there. Late 20s. Non working wife. Young kids. Mortgage, car loan.
Living from paycheck to paycheck. Second hand furniture. Holidays in my parents caravan.
It never crossed my mind to come out the pension scheme.
Especially as I assume contributions are before tax. So I assume any additional income freed up by coming out will be taxed at their top rate
How long ago were you in your late 20’s?https://www.telegraph.co.uk/money/pensions/private...
Seems very short sighted to me. .
Tight finances? I have been there. Late 20s. Non working wife. Young kids. Mortgage, car loan.
Living from paycheck to paycheck. Second hand furniture. Holidays in my parents caravan.
It never crossed my mind to come out the pension scheme.
Especially as I assume contributions are before tax. So I assume any additional income freed up by coming out will be taxed at their top rate
There are tens of thousands within Gen X who haven’t paid into a private pension nor worked long enough to qualify for a state pension. There are legions of people who have worked cash in hand and claimed benefits over the past 30 years.
What are the state going to do to prop all these people up as they get old?
I suspect the answer will involve their getting loads of stuff free- council tax and the like. Some sort of benefit or credit to offset their rent or mortgage.
And those who would qualify for a state pension who have had the audacity to pay into a private pension or contribute to a work scheme, being told they won’t be getting a state pension after all.
Because- those with the broadest shoulders. An all that.
What are the state going to do to prop all these people up as they get old?
I suspect the answer will involve their getting loads of stuff free- council tax and the like. Some sort of benefit or credit to offset their rent or mortgage.
And those who would qualify for a state pension who have had the audacity to pay into a private pension or contribute to a work scheme, being told they won’t be getting a state pension after all.
Because- those with the broadest shoulders. An all that.
Saving the taxpayer a bit of cash.
Absolute madness though, throwing fistfuls of money away every month.
It is amazing how financially illiterate we are as a nation. I often speak to work colleagues on the subject who will happily put money into their cash ISA but not into top up payments for their pension.
Absolute madness though, throwing fistfuls of money away every month.
It is amazing how financially illiterate we are as a nation. I often speak to work colleagues on the subject who will happily put money into their cash ISA but not into top up payments for their pension.
I’ve mentioned before that one of my daughters works in the NHS and hardly any of her similar age colleagues are in the pension scheme. She is in it.
They reckon they need the money now. It’s hundreds of quid a month and, on top of similar level student loan repayments, they say they just can’t afford it. They also never intended to work in the NHS long term.
The scheme also changed twice ( so three versions) in quite a short timeframe, so there was a bit of a lack of trust in it. On top of that, she’s now employed by a third party - she has retained her NHS pension, but the firm pushes staff to accept their T’s & C’s with a more typical DC pension by being awkward about NHS pay rises.
They reckon they need the money now. It’s hundreds of quid a month and, on top of similar level student loan repayments, they say they just can’t afford it. They also never intended to work in the NHS long term.
The scheme also changed twice ( so three versions) in quite a short timeframe, so there was a bit of a lack of trust in it. On top of that, she’s now employed by a third party - she has retained her NHS pension, but the firm pushes staff to accept their T’s & C’s with a more typical DC pension by being awkward about NHS pay rises.
Jawls said:
Very sad. This is the most expensive mistake most of them will ever make.
But much of the UK is financially illiterate so it is not surprising.
100%But much of the UK is financially illiterate so it is not surprising.
It is a big chunk of money for them though in some cases, potentially 3or4 times the deduction of alternative professions - with no option to take a reduced level.
Maybe we need to offer them access to an alternative lower cost option (for them & us the tax payer)
I’ve got some younger colleagues (NHS) who’ve opted out of the pension. They had similar plans, opt out for a year or two to save a bit/clear debt but then never opted back in and are now massively regretting it. It’s a shame as they joined in their very early 20s and it’s an incredible benefit.
I wonder if it's more than in the past, tens of thousands doesn't seem that many compared to how many work in those particular jobs.
https://archive.ph/sTEDQ non paywall version.
https://archive.ph/sTEDQ non paywall version.
Edited by borcy on Tuesday 24th June 08:01
At the end of the day, these are intelligent people. They are making a choice of short term reward (if you can call it that). I have very little sympathy for any future financial struggles. But then I put 19% of my salary into my pension to achieve my goals.
I always have the pension 'chat' with the apprentices in work, to ensure they understand the matching contribution (ie free money), as I personally didn't at that age and saw myself off.
I always have the pension 'chat' with the apprentices in work, to ensure they understand the matching contribution (ie free money), as I personally didn't at that age and saw myself off.
irc said:
"Tens of thousands of young teachers and doctors are shunning their gold-plated pensions because they can t afford the contributions"
https://www.telegraph.co.uk/money/pensions/private...
Seems very short sighted to me. .
Tight finances? I have been there. Late 20s. Non working wife. Young kids. Mortgage, car loan.
Living from paycheck to paycheck. Second hand furniture. Holidays in my parents caravan.
It never crossed my mind to come out the pension scheme.
Especially as I assume contributions are before tax. So I assume any additional income freed up by coming out will be taxed at their top rate
On the face of it, what you say makes perfect sense. But things are much worse for youngsters today. You never had student loan payments coming out of your salary. You had a mortgage, probably having bought a place for 3 or 4 times your annual salary. Today they are probably struggling to pay rent. Both working, no kids, in their 30s, biological clock ticking and still struggling to save for a deposit to buy at 5 times their joint salary.https://www.telegraph.co.uk/money/pensions/private...
Seems very short sighted to me. .
Tight finances? I have been there. Late 20s. Non working wife. Young kids. Mortgage, car loan.
Living from paycheck to paycheck. Second hand furniture. Holidays in my parents caravan.
It never crossed my mind to come out the pension scheme.
Especially as I assume contributions are before tax. So I assume any additional income freed up by coming out will be taxed at their top rate
When you have no home of your own, can't afford to start a family, etc, telling people to save for a pension becomes a very tough sell.
Jawls said:
Very sad. This is the most expensive mistake most of them will ever make.
But much of the UK is financially illiterate so it is not surprising.
Kids spend enough time in school to not be financially illiterate though so someone isn’t doing their Job properly.But much of the UK is financially illiterate so it is not surprising.
Maybe they could start by teaching finance instead of trigonometry or the battle of Hastings…
Cats_pyjamas said:
At the end of the day, these are intelligent people. They are making a choice of short term reward (if you can call it that). I have very little sympathy for any future financial struggles. But then I put 19% of my salary into my pension to achieve my goals.
They are often making choices for short term survival. I think a lot of people of my age (62) are completely clueless about how much easier things were back in our day. Or deep down they know it but don't want to admit it.Would you have paid 19% of your salary (after student loan repayment deduction) when you were trying to pay your rent, whilst trying to save for a deposit, couldn't afford to start a family etc, etc.
Leptons said:
Jawls said:
Very sad. This is the most expensive mistake most of them will ever make.
But much of the UK is financially illiterate so it is not surprising.
Kids spend enough time in school to not be financially illiterate though so someone isn t doing their Job properly.But much of the UK is financially illiterate so it is not surprising.
Maybe they could start by teaching finance instead of trigonometry or the battle of Hastings
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