Half of UK have no pension

Gorgeous_George

From the BBC (link).

Half of UK adults aged between 20 and 60 are not putting aside any funds into a pension, a survey commissioned by the BBC suggests.

There could be trouble ahead.

GG

Lokolo

But a lot of 20-25 have just started work or are still in education so I can understand them not putting into a pension. I don't plan to start mine until late 20s.

Although this did scare me:

Among 41 to 60-year-olds, 45% are not currently paying into a pension fund.

Andy_L

How many of them are saving for retirement other than in a pension? (eg ISA, Property)

nw_man

Gorgeous_George wrote: »

From the BBC (link).



There could be trouble ahead.

GG

What do you mean, could be !!

bob_a_builder

Maybe because they are too busy filling the pension pots of council employees et al via their council taxes

dunstonh

I liked the comment from the accountant who said they had made no retirement provision but went on to say "I'm disillusioned with the general financial system and pensions are part of that.".

I wonder how disillusioned she will be when she has to rely on £4900 a year from the state pension because she did nothing. In reality, she is probably trying to deflect her own shortcomings in not being able to afford retirement planning by blaming a tax wrapper. If you dont like the wrapper then you invest in another one or by other means. You dont do nothing. You only do nothing if you are living beyond your means.

You also have to wonder what her professional stance is given that her clients are likely to be in positions where she should be telling them to make pension contributions.

She is disillusioned about something she hasnt got and almost certainly has never looked into.

EdInvestor

dunstonh wrote: »

I wonder how disillusioned she will be when she has to rely on £4900 a year from the state pension because she did nothing.

Or perhaps it will be more like 10k from the two state pensions, dunstonh
has forgotten about S2P.

Find out how much YOU will get by applying for a state pension forecast.

https://www.thepensionservice.gov.uk

Lokolo

lol Ed that did make me chuckle. Its like your a radio advert or something.

I signed upto that and said I would recieve information about logging in but never got it! I wonder what happens when I next try and register

dunstonh

Or perhaps it will be more like 10k from the two state pensions, dunstonh
has forgotten about S2P.

Seeing as most people who qualify for the second state pension dont get anywhere near to that, its sensible not to rely it. It has also been reduced 3 times retrospectively by the Govt. The average figure for those that do qualify is around £7500 and those starting out in employment now cant get higher than £8000.

The article suggests self employment and as you should be aware, the self employed dont qualify for the second state pension. Or perhaps you forgot that.

The basic state pension is going to be fairly reliable. The second state pension is not something you really want to rely on.

Gorgeous_George

I understand the sentiment.

Why save when it means you'll have to pay for your care and !!!!!!!!!!s get it for nothing? Theyll probably make the bus pass, prescriptions, dental care and the state pension fully means tested by the time I'm 65 (or 68 or whatever age I'll need to be by the time I retire).

I understand why people who can, don't pay into a pension. Then there are those on minimum wage who simply can't.

Maybe it's better to spend enough while you are young so as not to live too long into retirement.

I wouldn't rely on anything that the current rules offer. The Government will need to take another dip into pension funds befoire I retire.

GG

dunstonh

Why save when it means you'll have to pay for your care and freeleaders get it for nothing?

That is a common opinion but you have to remember that pension credit means a single person can have an income up to around £7000 a year. Thats not a lot of income. If someone has been used to £20,000 a year then to drop to £7000 is going to be a severe drop in their living standards.

There isnt really a need for it either. They ought to start phasing out pension credit when the personal accounts are launched. Phasing it so that those further away get less than those closer with less time to do something about it.