State pension worth £100k ?

[Soir]

Reading on BBC annuity rates are lowest in 5 years. For example:
If you had £100k pot to buy annuity this would get you about £5300 per annum (at 65)

State pension is £107 per week, approx £5500 per year

Therefore if my math is correct the state pension is current equivalent of giving everyone a £100k pension pot.

Is this correct?

[trickywoo]

Sounds about right but don't forget the state pension isn't perpetual, when you die thats it.

[mattnunn]

Are you going to ask for the cash instead?

I suspect the answer might be no.

[Burrow01]

trickywoo said:

Sounds about right but don't forget the state pension isn't perpetual, when you die thats it.

Same with an Annuity I believe, unless you opt for (reduced) payment to your spouse once you die

[Soir]

No I'm pretty sure I'll die before I reach that age.

Thought it quite generous

[Fittster]

Soir said:

No I'm pretty sure I'll die before I reach that age.

Thought it quite generous

If it's your only income I doubt £107 feels generous.

[Soir]

Fittster said:

Soir said:

No I'm pretty sure I'll die before I reach that age.

Thought it quite generous

If it's your only income I doubt £107 feels generous.

I agree but £100k to min wage earner (my mother for example) although not much to live on £100k is pretty generous

[Tiggsy]

Which is why it cant be given to everyone long term.

People treat it like a private pension....in that, they paid in so they expect something back. It needs to be regarded as just another benefit that we all pay in for but you ONLY get if you are broke in old age.

30 years time we'll have a zillion old people, all living well past 90....sucking the system dry! and not enough working young people.

Problem for gov is no one wants to say....."some of you aint getting this"

[anonymous-user]

i don't agree with that tiggsy, i think your state pension should be contribution based and people have to realise that if they want something back, they have to be contributing in the first place.

[Fittster]

Soir said:

Fittster said:

Soir said:

No I'm pretty sure I'll die before I reach that age.

Thought it quite generous

If it's your only income I doubt £107 feels generous.

I agree but £100k to min wage earner (my mother for example) although not much to live on £100k is pretty generous

If someone spends there career in the private sector in fairly minimum wages jobs they aren't realistically going to be able to build up a pension pot of any use. What alternative is there than for the state to provide a pension (forcing employers to pay larger pension contributions for low paid staff will go down like a cup of cold sick).

[Fittster]

Tiggsy said:

Which is why it cant be given to everyone long term.

People treat it like a private pension....in that, they paid in so they expect something back. It needs to be regarded as just another benefit that we all pay in for but you ONLY get if you are broke in old age.

30 years time we'll have a zillion old people, all living well past 90....sucking the system dry! and not enough working young people.

Problem for gov is no one wants to say....."some of you aint getting this"

The trouble is it's not worth those on small salaries trying to save for there retirement, they simply won't earn enough to build up a useful pension pot. If you start means testing pensions you might find many people decide that they are better off not making any personal plans as they will in effect be locking themselves out of the state scheme.


The UK doesn't have to bad a demographic problem. The dependency ratio is kept to manageable levels thanks to the number of immigrants.

[ILoveMondeo]

RealSquirrels said:

i don't agree with that tiggsy, i think your state pension should be contribution based and people have to realise that if they want something back, they have to be contributing in the first place.

Not that I'm counting on getting a state pension when I retire (looking like 70+ by the time I get there, so 35 years or more...

isn't that how it works now? Unless you've been paying NI contributions you dont get one?

Or does being on the dole for your whole life count as having paid NI ?

[Fittster]

ILoveMondeo said:

Not that I'm counting on getting a state pension when I retire (looking like 70+ by the time I get there, so 35 years or more...

isn't that how it works now? Unless you've been paying NI contributions you dont get one?

Or does being on the dole for your whole life count as having paid NI ?

"You will automatically receive National Insurance credits for the weeks you’ve been claiming the following benefits (if you have paid enough National Insurance contributions):

Carer’s Allowance
Jobseeker’s Allowance
Incapacity Benefit
Employment and Support Allowance"

[BoRED S2upid]

RealSquirrels said:

i don't agree with that tiggsy, i think your state pension should be contribution based and people have to realise that if they want something back, they have to be contributing in the first place.

Exactly. In the real world this would apply, someone works for 40 years gets more state pension than someone only having worked for 20 years of their life but unless Pistonheads gets voted into power its not going to happen.

Just imagine if the country was run by votes on pistonheads...

[mattnunn]

ILoveMondeo said:

Not that I'm counting on getting a state pension when I retire (looking like 70+ by the time I get there, so 35 years or more...

isn't that how it works now? Unless you've been paying NI contributions you dont get one?

Or does being on the dole for your whole life count as having paid NI ?

They get a Class 1 NIC credit if on unemployment or sickness benefits.

[Tiggsy]

BoRED S2upid said:

RealSquirrels said:

i don't agree with that tiggsy, i think your state pension should be contribution based and people have to realise that if they want something back, they have to be contributing in the first place.

Exactly. In the real world this would apply, someone works for 40 years gets more state pension than someone only having worked for 20 years of their life but unless Pistonheads gets voted into power its not going to happen.

Just imagine if the country was run by votes on pistonheads...

which is still a change from now - everyone gets it and for many its not enough (hence pension credits....which have made it pointless for lots of low earners to have bothered building up small pensions) or its not needed but paid anyway.

[Kenty]

Pension payments are going to be £150/week if current Government plans go ahead, which makes your pot about £150K but i'm sure there is going to be a lot of rule changes associated with it.

[The Leaper]

I paid for my State pension from 1959 to 2004, so a total of 45 years. So it is not "free" at all, and a pot of £100,000 is modest considering the amount I paid in.

Oh, and my wife did exactly the same!

R.

[Fittster]

The Leaper said:

I paid for my State pension from 1959 to 2004, so a total of 45 years. So it is not "free" at all, and a pot of £100,000 is modest considering the amount I paid in.

Oh, and my wife did exactly the same!

R.

Do you think you'd have got the same return from a private pensions or have you got more from the state than you paid for?

[CaptainSlow]

The Leaper said:

I paid for my State pension from 1959 to 2004, so a total of 45 years. So it is not "free" at all, and a pot of £100,000 is modest considering the amount I paid in.

Oh, and my wife did exactly the same!

R.

It is if you didn't put in.

Current workers are busy paying for the benefits and pensions of the work shy, plus of course the nice final salary pensions for the public sector.

Work hard and buy a house and as soon as you need some nursing care get ready to sell up to fund your stay. Of course, Fred in the next room that's had a "bad back" for the last 40 years will be getting his stay gratis.