Could you live on your pension?

[anonymous-user]

Welshbeef said:

anonymous said:

[redacted]

You can always buy in a cheaper area IF you want to buy.

For instance why do they not buy a buy to let somewhere else now and rent that out so it’s funding itself whilst they continue to rent themselves as they cannot afford to buy where they need to live.

Time passes a max of 25 years that other house is mortgage free so they could move into that or sell it and buy somewhere they want to live.

They also do not have to live in the U.K. when in retirement. Choose say somewhere in Asia and the state pension alone is a fortune(relatively).

Or put it all on Black in Monte Carlo or live in a tent ... or .....

[Welshbeef]

garyhun said:

Or put it all on Black in Monte Carlo or live in a tent ... or .....

Thing is they don’t have anything to put on Black currently

[anonymous-user]

Welshbeef said:

garyhun said:

Or put it all on Black in Monte Carlo or live in a tent ... or .....

Thing is they don’t have anything to put on Black currently

But that deposit for a BTL is no problem!

[Welshbeef]

garyhun said:

But that deposit for a BTL is no problem!

You could buy the cheapest house in the country £40-60k (house not flat) up north. I’d personally not choose to live in what must be a poor area but your investing to get a pad

[anonymous-user]

Welshbeef said:

garyhun said:

But that deposit for a BTL is no problem!

You could buy the cheapest house in the country £40-60k (house not flat) up north. I’d personally not choose to live in what must be a poor area but your investing to get a pad

I give up!

[Defcon5]

Welshbeef said:

£35k a year final salary pension when you earn £36k today.... that doesn’t look right to me unless of course you have a final salary pension that could go up to 100% of salary not the normal maximum of 2/3rds

It’s a career average scheme, not final salary

[Welshbeef]

Defcon5 said:

It’s a career average scheme, not final salary

And you pay in 7% £2.5k ish a year but when you retire you get £35k a year in today’s money!!!! Who’s paying in the other what 90%?

[CaptainSlow]

Welshbeef said:

Defcon5 said:

It’s a career average scheme, not final salary

And you pay in 7% £2.5k ish a year but when you retire you get £35k a year in today’s money!!!! Who’s paying in the other what 90%?

No one, the Government are currently borrowing it. You and I are paying the interest.

[soupdragon1]

Defcon5 said:

Sheepshanks said:

Does the amount payable in 2054 get adjusted for inflation, or is that the actual amount payable?

If it's actual, then OK, it is 98% of your current salary, but a lot could happen between now and then!

Yes it goes up with inflation (not sure which measure)

I have no doubt it will be massacred by the time I get there, but one can hope!

It costs me 7% of my salary, so probably still good value even if it was halved

I can't see this lasting to 2054 however as each year passes, it's like putting £20+ thousand in your pension which is brilliant.
Effectively, your pension at retirement is worth over a million quid..How many thousands of others have this type of pension...the cost will be billions and at what point do the govt say they can't afford it. Be happy as each year passes and it remains the same with the knowledge that there is a risk the plug will be pulled.

I think eventually, these type of pensions will be a footnote in the history books due to the incredible costs of providing them.

[Welshbeef]

CaptainSlow said:

Welshbeef said:

Defcon5 said:

It’s a career average scheme, not final salary

And you pay in 7% £2.5k ish a year but when you retire you get £35k a year in today’s money!!!! Who’s paying in the other what 90%?

No one, the Government are currently borrowing it. You and I are paying the interest.

I guess currently they are not even borrowing it as there is no fund as such it’s paid out in cash when due is take the risk.

Is it possible to transfer part of this fund out so you’ve got it locked away in a SIPP just incase the govt or future govt say you know what we’re re evaluating this and going to decrease the terms & historically

[HoHoHo]

If nothing else, folks talking about 2054 makes me feel rather depressed.......

If I’m still around I’ll be 91...and that’s quite old

[rfisher]

Nah it'll be great - we will be just about to join the European Union.

Can't wait.

Edited by rfisher on Sunday 7th October 19:46

[Defcon5]

CaptainSlow said:

Welshbeef said:

Defcon5 said:

It’s a career average scheme, not final salary

And you pay in 7% £2.5k ish a year but when you retire you get £35k a year in today’s money!!!! Who’s paying in the other what 90%?

No one, the Government are currently borrowing it. You and I are paying the interest.

It’s a funded scheme. I recall it’s assets were over 250bn in the paperwork they occasionally send out

[Welshbeef]

Defcon5 said:

It’s a funded scheme. I recall it’s assets were over 250bn in the paperwork they occasionally send out

Would you transfer it out to a SIPP / your personal pension fund to guarantee its security?

[Defcon5]

I don’t know the pros and cons of doing that, so can’t really answer

At this moment it is as secure as anything else (in that I don’t know what the future holds) I suppose