The Truth About The State Pension

CLAPTON

the european model is one of high state pension and high social security payments and low occupational pension

the UK model has been low state pension, lower NI to pay but higher occupational pension being part funded by workers and part from the company

for any given level of 'pension' in retirement you either need to pay high taxes or high salary deductions or a combination of the two

marklv

The European model is less risky, because you are guaranteed a certain amount at a certain age. The UK model leaves the entire risk in the hands of the citizen, and, to a lesser extent, the company pension provider. Once you reach old age pension age the government just pays you a pittance that you cannot live on alone. What would be better is a system that offers both a higher state pension, and also allows scope for personal and company pensions.

EdInvestor

marklv wrote: »

Nonsense - what evidence do you have that earnings are lower on the continent? Maybe in Greece and Portugal, but I doubt anywhere else. And where the salaries are lower, the cost of living is also lower.

You are not very well informed are you?:rolleyes:

http://livingingreece.gr/2008/04/04/minimum-monthly-salaries-of-eu-countries/

Scroll down for table.

Old_Slaphead

marklv wrote: »

Once you reach old age pension age the government just pays you a pittance that you cannot live on alone.

£130pw to cover basic needs sounds reasonable to me - plus you get all the extras like bus passes, WFA, prescriptions, age allowance etc etc.

Seems fair that anything above this level should be provided for by the individual......let's hear it for taking a bit of self responsibility.

Most pensioners do not have extravagent needs apart from food, fuel and council tax and the occasional bag of Werthers Originals.

Paul_Herring

Old_Slaphead wrote: »

£130pw to cover basic needs sounds reasonable to me - plus you get all the extras like bus passes, WFA, prescriptions, age allowance etc etc.

Seems fair that anything above this level should be provided for by the individual......let's hear it for taking a bit of self responsibility.

But £130pw is the minimum income guarantee, the state pension is £95.25. Any other income you get up to £34.75pw is swallowed up, so you'd better make darn sure that any personal provision exceeds that amount. (For this year anyway.)

http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/Basicstatepension/DG_10014671
http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_10018692

CLAPTON

Paul_Herring wrote: »

But £130pw is the minimum income guarantee, the state pension is £95.25. Any other income you get up to £34.75pw is swallowed up, so you'd better make darn sure that any personal provision exceeds that amount. (For this year anyway.)

http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/Basicstatepension/DG_10014671
http://www.direct.gov.uk/en/Pensionsandretirementplanning/PensionCredit/DG_10018692

the basic state pension is 95.25 but many/most will also benefit from serps or the second state pension.. but all very difficult to understand

Old_Slaphead

Paul_Herring wrote: »

But £130pw is the minimum income guarantee, the state pension is £95.25. Any other income you get up to £34.75pw is swallowed up, so you'd better make darn sure that any personal provision exceeds that amount. (For this year anyway.)

I know that but that's the minimum a pensioner will get from the state if they haven't saved anything themselves. Point I was making is that no-one will be living on 'a pittance'

The whole serps, S2P, new 2012 pension is nothing but a con (ie stealth tax) for most individuals who will not see much, if anym benefit. Still I suppose it's deceptive way of reducing cost of state welfare.

purch

The future remains a mystery to most of us.

Not to me.

MikeJones_2

The article Mark posted the link to is dated November 2007. Here's what was reported today:

- State pension will be linked to earnings despite cuts, Tories say (Telegraph.co.uk)

Whether it will happen, and in the timescale proposed, is another thing.

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

seven-day-weekend

marklv wrote: »

Nonsense - what evidence do you have that earnings are lower on the continent? Maybe in Greece and Portugal, but I doubt anywhere else. And where the salaries are lower, the cost of living is also lower.

.

And Spain, where the cost of living is no longer much lower.