Something that doesn't seem to get mentioned

Linton

spadoosh wrote: »

I like to believe i am a 'young person' and do not pay into a pension. Im 24 and have pretty much been in full time employment since turning 16 and never once paid into a pension. The main reason behind this are simply because I do not see it as a worthwhile investment.

If i paid into a pension i would only ever likely see increases in costs and reductions in my lump sum or pension payments. Fewer and fewer people are investing in pensions and they simply aren't sustainable.

So you go and enjoy your pension but please dont be ignorant in the fact that i will not pay in to prop up your pensions to then be dealt the bad hand when its my turn.

Appologies to those who might find this selfish but there are other more sustainable and reliable investments out there than pensions and i would rather spend my time and money persuing those.

Interesting point though OP

Frightening ignorance.

Assuming you are talking about company or personal money purchase pensions....

Just some basics:
- most sensible things you can invest in outside a pensions you can also invest in inside a pension.

- a pension is just a savings vehicle with some valuable tax advantages. How can it be unsustainable???

- employers often pay into a pension for you, not having one can be throwing away free money.

- "propping up" pensions - dont know what you mean. Your pension fund is in your name. When you retire you can chose to take an annuity which will give you a guaranteed income until you die (those that die early effectively pay for those who die late) or you can chose drawdown where you take money directly from your pension fund.


I guess that those foolish young people who have decided not to pay for their retirement have no conception of what living for say 25-30 years on the basic state pension would be like.

As to not being able to afford it - almost certainly rubbish. How much do you spend on your mobile phone, Sky, going out etc etc? Its just a question of priorities.

Suggest you and anyone thinking the same find out the facts quickly. Perhaps a wander and a few questions over on the pensions board would help.

Graham_Devon

Bizzarely enough, just read that the government have delayed extending the pension age. Costing taxpayers an extra £1bn, because some women born in the 1950's would have to wait an extra 2 years for their pensions.

Of course, everyone under that age will have to wait regardless. But wasn't fair on these ladies.

Going4TheDream

RenovationMan wrote: »

What do you suggest? Should we spend it all now and not worry about living in poverty in our old age?

No definitely not, I worked with a guy who refused to join what was the best benefit of the job - an excellent final salary pension - he said why should I - the government will keep me in my old age! this was a guy who had worked at the company for about 22 years and was on a relatively good salary so could have retired with a great pension.

I dont know what the answers are, there are too many variants to put everyone in the same boat and come up with a one size fits all solution... personally I am prepared to take responsibility and go without certain so called 'luxuries' to be able to afford to try and help make my future more comfortable.... 20 odd years is a long time to sit in reflection and be bitter about your circumstances when you have no money for even the basics

Percy1983

I do wonder if I am one of the only ones paying into a pension, with that the thought has crossed my mind how much quicker I would get a house if I stopped.

With that all my current budgets don't even consider my pension as an expense and all seems fine and should be when I buy a house.

wotsthat

Out,_Vile_Jelly wrote: »

Once I turned 30 my dad kept nagging incessantly for me to sign up to my employer's pension (it's a final salary one, but not sure how good that's going to end up being). So I did to shut him up. I'm not confident it will ever be worth it.

Well the chances are that when you reach retirement you'll be grateful to your dad for the advice he gave you. You'll probably wish you had never delayed starting a pension (especially a final salary one) in the first place.

ukcarper

Graham_Devon wrote: »

Bizzarely enough, just read that the government have delayed extending the pension age. Costing taxpayers an extra £1bn, because some women born in the 1950's would have to wait an extra 2 years for their pensions.

Of course, everyone under that age will have to wait regardless. But wasn't fair on these ladies.

Only 1 year though well that's now.

Thrugelmir

Choice as to how you spend your own money. I started my first pension plan when I was 19. Was only £10 per month.

From acorns grow oak trees as the saying goes.

Linton

Out,_Vile_Jelly wrote: »

Once I turned 30 my dad kept nagging incessantly for me to sign up to my employer's pension (it's a final salary one, but not sure how good that's going to end up being). So I did to shut him up. I'm not confident it will ever be worth it.

I suggest you do some calculations and work out how much you would have to pay to provide the guaranteed income your final salary scheme will provide. I guarantee you will be shocked.

eg to provide an indexed linked income guaranteed until death of £10K for someone aged 65 now would cost more than £300K.

IveSeenTheLight

Graham_Devon wrote: »

BTL has been seen as a great pension, but with rents as they are, it's only stopping the BTL brigade generations children pay into a pension themselves.

Can you please justify this statement?
How do you calculate that by having some BTL's my children are stopped from having a pension?
I've come to learn not to rely on others but to ensure you have provided for yourself.
I'll be bring up my children to learn to provide for themelves as well.

Graham_Devon wrote: »

How many under 30's have pensions? And considering many of them are crippled with housing costs, how many will have them by the time they are 40?

I started my pension when I was 21.
I'm almost 38 now (nearly 40) and am still contributing to a pension

Graham_Devon wrote: »

What about the 21% of unemployed under 25 year olds? They can't even get a job, and if they do the first thing will be housing, and maybe kids etc, with the pension coming way down the line.

Many countries don't offer a weldare state.
You either work, or youdon;t earn.
Retirement - many countires have elders in the same houselhold to help look after grandchildren whilst the parent work.

Graham_Devon wrote: »

Just thinking out loud really. But certainly, the people I know, who are all lik emyself and just "getting by" from day to day, watching everything go up around us, there don't seem to be many planning for retirement....it's bad enough just trying to live for today with housing and fuel costs.

A question is, what is "getting by".
I know generations before walked miles to work to save the tuppence bus fares.
Do people cook and recycle left overs from home nowadays becomming efficient in their groceries?
I think people "getting by" is not as hard as "getting by" from previous generations.

FTBFun

My Dad is a pensions adviser/salesman/consultant (never worked out which) and has said to me that ideally, we should have been contributing to one since we were 18 (obviously impractical as a student then a backpacker). I started mine 5 years ago when I was 25 and have recently started making AVCs on top of the 5% I contribute and the 5% my employer contributes. Its somewhat tax efficient to pay in as a 40% tax payer and withdraw as a 20% tax payer.