Over 55s hoping to enjoy a 'golden retirement' are facing poverty

chucknorris

2010 wrote: »

It baffles me why people are reluctant to pay off their mortgages at the earliest opportunity even when some of them are able.

A mortgage is a debt, and I cannot see any reason why over a 25 year period,and if not sooner,it should not be fully paid off.

Live now pay later,only trouble is later is now.

I'm in no rush when I am only paying mortgage rates of just over 1% and earning an average of over 5% on my savings

worldtraveller

Old_Slaphead wrote: »

This pension poverty will affect virtually everybody (except public sector)

Exactly! The revolution is coming and the taxpayer will not be prepared to subsidise, any longer, the gold-plated, index linked for life, final salary based, public sector pensions! This is clearly an inequitable, non-sustainable system, which in quickly leading to a two-state society. Those in the public sector facing a comfortable, taxpayer subsidised retirement and everyone else, struggling to make ends meet. The sooner that society realises that, the better!

Radiantsoul

worldtraveller wrote: »

Exactly! The revolution is coming and the taxpayer will not be prepared to subsidise, any longer, the gold-plated, index linked for life, final salary based, public sector pensions! This is clearly an inequitable, non-sustainable system, which in quickly leading to a two-state society. Those in the public sector facing a comfortable, taxapyer subsidised retirement and everyone else, struggling to make ends meet. The sooner that society realises that, the better!

LOL!
Do you really believe the great mass of public sector workers are really so far above the rest of society?

worldtraveller

Radiantsoul wrote: »

LOL!
Do you really believe the great mass of public sector workers are really so far above the rest of society?

Certainly in pension terms today, yes they are! However, like most things to do with the public sector and their status, they largely just don't know it!

avalanche_3

smartn wrote: »

You have been very fortunate to have been invested in property. Many people were sold pensions instead, something I'm sure they regret and wished they'd done the same as you, however at the time a pension was an equally valid choice as property.

I wasn't saying you shouldn't take out a pension to provide extra retirement funds, both me and my wife have been putting into pension funds for over 30 years.

All I was pointing out is that it was possible with carefull investment for somebody now in their 50's, like myself not to be poor in retirement or maybe retire early.

With property it is the art of buying when prices are at the bottom of a price cycle.

I wouldn't advise anybody to put all their eggs in one basket though.

Harry_Powell

smartn wrote: »

Have you seen what little returns have been gained from stock investment over the last decade? To accuse these people of not keeping an eye on their investments would imply there were better returns elsewhere. The only asset class that has made significant returns I can think of is property, are you suggesting maybe even more people should have become BTL'ers?

If you start a pension plan 10 years before you retire, then you can't expect to retire in much comfort. Unless you put away a sizeable fortune. If on the other hand you put a pension away for the same timescale as you have a mortagge - typically 25 to 35 years then you'll have found (and will find again) that the stockmarket beats every other investment hands down. end of.

avalanche_3

Kohoutek wrote: »

About time the Bubble burst for real and then I would be able to make another good investment by buying after the Bubble had burst but before the next bubble started.

silvercar

avalanche wrote: »

About time the Bubble burst for real and then I would be able to make another good investment by buying after the Bubble had burst but before the next bubble started.

A lot of people think that these evils property investors will have got their fingers burnt on BTL and will now stand aside once the housing bubble has really burst, to allow all the FTBs to get on the housing ladder. The truth is that the canny investor is probably sitting with cash ready to buy as soon as they feel the bottom is reached. With the current mortgage shortage, it is the FTB that will find it hard to compete.

Radiantsoul

Harry_Powell wrote: »

If you start a pension plan 10 years before you retire, then you can't expect to retire in much comfort. Unless you put away a sizeable fortune. If on the other hand you put a pension away for the same timescale as you have a mortagge - typically 25 to 35 years then you'll have found (and will find again) that the stockmarket beats every other investment hands down. end of.

I don't see that is certain. The UK and USA have stock markets that have performed while over the last 150 years. But over that timeframe many countries have not performed so well hyperinflation, nationalisation, war, economic collaspse, etc.

avalanche_3

silvercar wrote: »

A lot of people think that these evils property investors will have got their fingers burnt on BTL and will now stand aside once the housing bubble has really burst, to allow all the FTBs to get on the housing ladder. The truth is that the canny investor is probably sitting with cash ready to buy as soon as they feel the bottom is reached. With the current mortgage shortage, it is the FTB that will find it hard to compete.

The only people who got burnt were those who jumped on the bandwagon too late and like sheep with the wool over their eyes didn't see that prices don't go up forever ( when first time buyers are priced out of the market ) and bought in the last 3 years.

This was all encouraged by the press reporting how much was to be made from BTL and record house price increases, sadly for these late starters the bubble has burst. If they can afford to wait a few years they will be able to get their money back.