Pension Age Going Up and Strikes Public Sector

Koicarp

gadgetmind wrote: »

That £600k looks a little high to me, but only about maybe 20% off, which another drop in gilt yields could easily bridge.

However, as someone who needs to fund their own pension won't have a clue how their investments will do over the decades, they need to aim high as the markets are pretty torrid, gilt yields low/unpredictable, and the government interfere with private pensions even more than public sector ones.

I was thinking it was about 20% high too. Re: investing in the markets and "aiming high" that's not the approach suggested by Tim Hale in his book, which is often recommended on here.

gadgetmind

Koicarp wrote: »

I was thinking it was about 20% high too. Re: investing in the markets and "aiming high" that's not the approach suggested by Tim Hale in his book, which is often recommended on here.

By "aiming high" I meant that you need to plan for a *much* larger pot than current annuity rates suggest, and much higher contributions that current growth rates suggest, to ensure you have sufficient pension income.

The_Angry_Jock

MikeR71 wrote: »

The most important workers in the society (teachers, nurses, firemen, policemen etc.).

And you expect the private sector no-marks to support you? With this attitude?

gadgetmind

The_Angry_Jock wrote: »

And you expect the private sector no-marks to support you? With this attitude?

The arguments can go in circles and I'd find it hard to say which sector I needed most, as we're all reliant on each other. So saying, the recent public sector strikes had zero effect in me personally!

MikeR71

The_Angry_Jock wrote: »

And you expect the private sector no-marks to support you? With this attitude?

No of course not. But then again many of them believe investment bankers and company executives are more important than nurses and teachers who look after us and train our future generations.

Regarding the other points, no I am not wrong about the pension pots. Most public sector pension pots are many millions in credit. My own scheme is an example, which is nearly 300 million in credit.

The Unions have repeatedly asked the government to produce the figures that shows the pensions are in deficit as one of the conditions of the talks and the government continually refuses to do so. The Unions also asked the government to guarantee that the rise in contributions will go into pension pots that pay pensioners living longer. This simple request is also not met.
We are told we are living longer and have to contribute more, FINE. Then at least show you are going to use the extra money for the aging population. But they won't.

It all boils down to one thing and that is the government is using pensions to reduce the deficit. This whole story has nothing to do with pension shortfalls or affordability of it.

Thrugelmir

Koicarp wrote: »

Can you show your working please Atush? I've put the figures for my NHS pension on the "update" thread. Pension is 16.5k for a band 7 nurse currently earning 37k. Are you sure I would need 600K to get that?

A link to the FSA website.

http://tables.moneyadviceservice.org.uk/Comparison-tables-home/Annuities/Compare-Annuities/

With a £600k fund aged 67. Currently I would receive an annual pension of £16,620 PA linked to the RPI, with a 50% dependents pension.

The benefit of the dependents pension is often overlooked.

bendix

MikeR71 wrote: »

No of course not. But then again many of them believe investment bankers and company executives are more important than nurses and teachers who look after us and train our future generations.

.

Here we go again. The last refrain of the angry public sector worker having to pay a little bit extra for their pension (yet still much less than those in the private sector need to pay) is always the same - "so you must support the evil bankers".

God, it's all so puerile.

When will the standard of debate start to mature on MSE?

Starship9

bendix wrote: »

Here we go again. The last refrain of the angry public sector worker having to pay a little bit extra for their pension (yet still much less than those in the private sector need to pay) is always the same - "so you must support the evil bankers".

God, it's all so puerile.

When will the standard of debate start to mature on MSE?

Get real - they are hardly going to welcome this are they ?

The Public Sector had an amazing deal - so much so that many of them were unaware of just how good it was. Now it's being eroded so they are moaning about that. It's just human nature - hang on to what you have got and protest like crazy if anyone threatens to take it away.

If you have 5 cars and somebody steals one, your reaction is unlikely to be "oh well I've 4 others". You will want the 5th back and the person who stole it punished.

You need to think like Smaug in "The Hobbit" here

bendix

Starship9 wrote: »

If you have 5 cars and somebody steals one, your reaction is unlikely to be "oh well I've 4 others". You will want the 5th back and the person who stole it punished.

Except noone is seeking to steal the fifth car, are they. The government is simply asking them to pay a little more for it, and SIGNIFICANTLY less than carowners in the private sector have to pay for the same car.

What gets me is that public sector workers who claim that a £16000 pension for a £37000 job, simply can't understand - or refuse to understand - that a similar pension entitlement in the private sector would have meant they would have had to build a pension pot of half a million pounds through their own saving? It's like they hear the words, but it doesn't seap through into their thinking.

chucknorris

bendix wrote: »

Except noone is seeking to steal the fifth car, are they. The government is simply asking them to pay a little more for it, and SIGNIFICANTLY less than carowners in the private sector have to pay for the same car.

What gets me is that public sector workers who claim that a £16000 pension for a £37000 job, simply can't understand - or refuse to understand - that a similar pension entitlement in the private sector would have meant they would have had to build a pension pot of half a million pounds through their own saving? It's like they hear the words, but it doesn't seap through into their thinking.

I don't think you can say this about everyone in the public sector. I started working in the public sector last year and obviously was well aware of how good the pension scheme was (and still is). Obviously if you ask me if I wanted the changes I would say no, but on the other hand I am not complaining as I can see why they are heppening, and of course it's still an excellent deal.

One thing though, I will be slightly peeved if the increased pension age of 66 also applies to the 'addditional pension' that I recently agreed to buy because this was specifically calculated based upon a retiring age of 65. As I start paying for this next month when I will be 54, it's a significant change to move the goalposts by one year.