State pension - sticking around or not?
Discussion
Every once in a while someone posts in a thread about how they don't think the state pension will be around when they retire, or that it will be worthless. Is there any reasoning behind this view, apart from pessimism?
The state pension seems to be the one thing defended by all politicians, and doesn't appear to be going anywhere any time soon, and there's no indication that any other European countries are looking to drop their (probably more generous) state pensions.
Should someone in their 50s be worried it won't be there when they retire? Someone in their 30s?
The state pension seems to be the one thing defended by all politicians, and doesn't appear to be going anywhere any time soon, and there's no indication that any other European countries are looking to drop their (probably more generous) state pensions.
Should someone in their 50s be worried it won't be there when they retire? Someone in their 30s?
It will never be means tested IMO .
Be a very brave gov. who implemented that policy.
But IMO the state pension will gradually be started later and later ie people will have to work till they drop.
Watch out for those old duffers wanting to pack your groceries away and fighting to take your shopping trolley from you for a pittance.
Be a very brave gov. who implemented that policy.
But IMO the state pension will gradually be started later and later ie people will have to work till they drop.
Watch out for those old duffers wanting to pack your groceries away and fighting to take your shopping trolley from you for a pittance.
My guess is that the triple lock would be altered to make it cheaper. before means testing was introduced.
https://www.bbc.co.uk/news/uk-politics-39734078
https://www.bbc.co.uk/news/uk-politics-39734078
anonymous said:
[redacted]
I could live with that.....
I'm 30 years off retirement yet, but I can see a lot of 'issues' along the road, I think it's best policy to look after yourself in terms of planning for your own retirement expecting there to be no state pension, and then if it turns out that it still exists then take it as a bonus on top of what you have squirreled away.
Think we’ll always get it but
It will always be below the cost of living & topped up for those without other income to live on.
I think changes will be how far below the cost of living it becomes.
So kinda means tested in a way.
(I’m greatly opposed to paying more than 35years of contributions though so hope to retire well before whatever my pension age ends up, so need to plan an alternative!)
It will always be below the cost of living & topped up for those without other income to live on.
I think changes will be how far below the cost of living it becomes.
So kinda means tested in a way.
(I’m greatly opposed to paying more than 35years of contributions though so hope to retire well before whatever my pension age ends up, so need to plan an alternative!)
anonymous said:
[redacted]
.... and what about the foolish who didn't bother to sort out a proper pension despite being able to afford to?They get to have the State Pension, but someone who planned properly gets it taken from them? To me that is worse than something enjoying themselves off the back of the SP
anonymous said:
[redacted]
I wasn't aware of that and can't see any indications of it in the government pages with examples, or indeed on any sites that reported on the changes.I'm not suggesting that you're wrong but could you share any links so I can try and understand a little more around this?
Derek Chevalier said:
My guess is that the triple lock would be altered to make it cheaper. before means testing was introduced.
https://www.bbc.co.uk/news/uk-politics-39734078
Tried that already and had to back down! Stupid thing is the pensioners who have really benefited now from retiring at 60 with (relatively) decent pensions are benefiting from a bigger rise in their pension than many people have been in work, as pay increase has been so low in recent years. So they benefit again. https://www.bbc.co.uk/news/uk-politics-39734078
Just my view, but if you're in your 30s (or younger) today then I woudn't bank on there being much more than a minimal state pension when you retire, and you probbaly won't get anythng until you're well into your 70s.
It purely due to having an ageing population, there's going to be a proportionally smaller workforce supporting a proportionally larger group of reitrees. It's just not sustainable.
Why do you think the gov in so keen on auto enrollment pensions? It means everyone (in employment) should have have some kind of pension provision, so will be less reliant on the state.
There's a pretty obvious direction of travel here in my view.
It purely due to having an ageing population, there's going to be a proportionally smaller workforce supporting a proportionally larger group of reitrees. It's just not sustainable.
Why do you think the gov in so keen on auto enrollment pensions? It means everyone (in employment) should have have some kind of pension provision, so will be less reliant on the state.
There's a pretty obvious direction of travel here in my view.
I started a separate thread about opt out of SERPS a while back and was clear in it that I really didn't understand what it all meant.
Now I'm even more confused, reading that Telegraph link it states the following
'Where they had been contracted out, a separate calculation worked out something called a “guaranteed minimum pension”, or GMP. This was supposed to be a “notional Serps equivalent”, which was now due to be paid by the employer'
No employer in my case, I 'opted out' into a private pension at 18. Not entitled to a company one and that remained the same until I was 31ish in 2000.
Even less idea now
Now I'm even more confused, reading that Telegraph link it states the following
'Where they had been contracted out, a separate calculation worked out something called a “guaranteed minimum pension”, or GMP. This was supposed to be a “notional Serps equivalent”, which was now due to be paid by the employer'
No employer in my case, I 'opted out' into a private pension at 18. Not entitled to a company one and that remained the same until I was 31ish in 2000.
Even less idea now
AndyAudi said:
Think we’ll always get it but
It will always be below the cost of living & topped up for those without other income to live on.
I think changes will be how far below the cost of living it becomes.
So kinda means tested in a way.
(I’m greatly opposed to paying more than 35years of contributions though so hope to retire well before whatever my pension age ends up, so need to plan an alternative!)
Do we think the means testing will judge those who opted out of auto-enrolment pensions harshly?It will always be below the cost of living & topped up for those without other income to live on.
I think changes will be how far below the cost of living it becomes.
So kinda means tested in a way.
(I’m greatly opposed to paying more than 35years of contributions though so hope to retire well before whatever my pension age ends up, so need to plan an alternative!)
I am amazed (and dismayed) by people opting out of pensions and then 'keep' buying new sofas, lease cars, skiing holidays, etc.
Mike
...... NoNo, because that would be “unfair” of course!
I agree there should in theory be an element of the gov saying “we told you you need to save, you’ve made your bed lie in it” but I don’t ever see that happening
Auto enrolment etc in my opinion just reduces the amount of shortfall the gov will be picking up with pension credit etc.
Some folks question if auto enrolment is worth it, as folk on small salaries most of the way through their working lives could potentially end up with a pot of just £25k when they retire which isn’t going to give much, but it will potentially reduce the amount they need to be subsidised in top up to minimum income levels.
ETA assuming they don’t just draw the lot as soon as they can & blow it!
I agree there should in theory be an element of the gov saying “we told you you need to save, you’ve made your bed lie in it” but I don’t ever see that happening
Auto enrolment etc in my opinion just reduces the amount of shortfall the gov will be picking up with pension credit etc.
Some folks question if auto enrolment is worth it, as folk on small salaries most of the way through their working lives could potentially end up with a pot of just £25k when they retire which isn’t going to give much, but it will potentially reduce the amount they need to be subsidised in top up to minimum income levels.
ETA assuming they don’t just draw the lot as soon as they can & blow it!
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