Suitable Pension for a child

jamesd

Yes, it's the state pensions. Getting one of the online State Pension Forecasts will tell you your own retirement age and a projection of your future state pensions. That'll assume constant income so it won't be very reliable, just better than nothing to give you a basis for planning how much more you'll need.

exil

Lokolo wrote: »

Are state pensions the things that NI contributes to that everyone gets?

That's it. Though the contributions don't actually get saved in a pot anywhere, the pensions are paid from taxes paid by current taxpayers.

Lokolo

So I pay National Insurance for 46 working years (22-48) and get a pension for 20 years? (Lets me honest, I'll be lucky to live to 90 with all the stress in my life )

Seems like a con to me...

Nevermind eh!

EdInvestor

Lokolo wrote: »

So I pay National Insurance for 46 working years (22-48) and get a pension for 20 years? (Lets me honest, I'll be lucky to live to 90 with all the stress in my life )Seems like a con to me...

To buy a pension income equivalent to the basic state pension on the open market you would need to save up a fund of more than 150,000 pounds.Does is still seem like a con?

Lokolo

EdInvestor wrote: »

To buy a pension income equivalent to the basic state pension on the open market you would need to save up a fund of more than 150,000 pounds.Does is still seem like a con?

Well yeh considering you can't get it until you're 68 (by the time it comes around to me). The average death age for males in England in 2005 was 77 years. Which means you get a pension for just under 10 years on average...? I don't know about you but if I died at 69 I would be pretty peeved off about contributing £78k (national average of NI contributions) and having 1 years worth of state pension used.

At least with normal pension you get it at a decent age and if you die early it goes to OH. Does state pension? (geneuine q, I don't know)

EdInvestor

Lokolo wrote: »

At least with normal pension you get it at a decent age and if you die early it goes to OH. Does state pension? (geneuine q, I don't know)

Sure. OH can claim a 60% pension in her own right at the same time as you get yours.When you die, this is raised to 100%.Both of them are index linked to RPI. If you have any previous wives, they can all claim 100% pensions as well.If you retire and are married to someone below state pension age, you can claim a 60% dependant's allowance for them as well.

Then there's SERPS/S2P.For an average earner with a full work record, this will double the basic state pension you can get.50% of this can be left to your spouse.

Check out your own forcecast here: https://www.thepensionservice.gov.uk

Lokolo

Ah ok so at the moment you get £90 a week from State Pension from 6x (68 for me), which is about £5k (just under).

I was going to do the forecast but I have to sign up.

I don't think I'll start putting money into stakeholder pension etc. until I am 25 (make sure I am in secure job etc. first!!!).

dunstonh

The average death age for males in England in 2005 was 77 years.

It was just 2 years after state retirement age when it was introduced. So, things have improved.

kennyboy66_2

Lokolo wrote: »

Well yeh considering you can't get it until you're 68 (by the time it comes around to me). The average death age for males in England in 2005 was 77 years. Which means you get a pension for just under 10 years on average...? I don't know about you but if I died at 69 I would be pretty peeved off about contributing £78k (national average of NI contributions) and having 1 years worth of state pension used.

At least with normal pension you get it at a decent age and if you die early it goes to OH. Does state pension? (geneuine q, I don't know)

Life expectancy for a male who is 65 is currently 82 (ie another 17 years).

Lokolo

Yeh but you have to reach 65 first

Only makes it worthwhile if you live long enough lol