Pensions - whats the truth about changes to public sector pensions?

jem16

Lokolo wrote: »

Yeh but you don't have to use a pension for your retirement.

Your average public sector employee is very unlikely to have anything but their pension for their retirement.

Poosmate

atush wrote: »

Poo,

I suggedt a trip o the debt free board. There you can get advice on how to cut your outgoings down, and your income up. in order to pay off debt and keep those pension payments up. If you are on a low salary, the most recent annoucements seem to say you won't have having any sort of increase.

Whatever you do, keep up your pension payments. Despite the changes, it is still a very very good pension that those earning the same as you in the private sector would never be able to afford. So keep it even if you have to drop down your sky package.

Thanks but been there and done that. I got very disillusioned with many on there trying to weedle out of paying their debts or get away with paying as little as possible.

Regarding the age rise thing, I read somewhere else about it being 1995 when the retirement age was raised but I couldn't believe it was so long ago. Heaven knows where my head has been, must have gone through a time warp or something. I am 45 years old (demetia setting in already! EEK!).

Have to go back and read some more because I forgot what else to respond to! lol

Poo

sheffield_lad

jem16 wrote: »

Your average public sector employee is very unlikely to have anything but their pension for their retirement.

What about the house? I may consider selling and renting for the rest of my days or equity release? Not looking into it (only 43), but they are options.

I also dabble with shares I am sure there must be at least 1 PS worker who fancied themselves as a trader lol

Both daughters know this too lol.

bigfreddiel

jem16 wrote: »

Your average public sector employee is very unlikely to have anything but their pension for their retirement.

i'm an average ps employee but i've accumulated a few hundred k in other investments - how - by being careful with my money - same car for 10 years, one holiday a year, look out for interest rates dropping, buying stuff i need, special offers and so on - its not exactly rocket science.

fj

jem16

howee wrote: »

What about the house? I may consider selling and renting for the rest of my days or equity release? Not looking into it (only 43), but they are options.

It's a possibility but one I would prefer not to use personally. I'm sure many see it as a last resort rather than a plan.

I also dabble with shares I am sure there must be at least 1 PS worker who fancied themselves as a trader lol

I'm sure there is.

bigfreddiel wrote: »

i'm an average ps employee but i've accumulated a few hundred k in other investments - how - by being careful with my money - same car for 10 years, one holiday a year, look out for interest rates dropping, buying stuff i need, special offers and so on - its not exactly rocket science.

fj

There will be some public sector workers who have done exactly that but the average one with a few hundred k in investments - I doubt it very much.

atush

Selling your house is OK, if you can downsize mtg free.

Otherwise you are subject to rising rents and insecure housing. Not how i'd like to spend my golden years.

BobQ

a1mistert wrote: »

Can anyone clarify what the true changes are that the government are proposing for public sector pension contributions please?
I've tried the LGPS who won't comment as they are just proposals.
Unions have information but there seems yo be an element of scaremongering.
Based on rumours, I have to find a significant additional contribution from April so need to understand my options. Any constructive help ios welcome please.

THe information you want is freely available on the web

www.communities.gov.uk/localgovernment/local/pensions/pensionsreform/

There is a consultation on the proposed changes which does not end until January. When this completes they may proceed with the changes described or propose new changes (as they did with the NHS recently). Its not reasonable to expect the LGPS staff to say any more at the present time.

Whether the changes are significant to you depends on if the contribution increases are affordable during a pay freeze. If they are then you are still getting a good deal.

If you are not a union member there is no reason for them to advise you, you should ask your employer or look on its intranet. But all they can tell you is that you will pay more in the future and work longer which is true. But its still a good deal for the lower paid.

atush

Thanks but been there and done that. I got very disillusioned with many on there trying to weedle out of paying their debts or get away with paying as little as possible.

Go back, and don't be disillusioned. Take what you need and use it to your advantage.


If I got sidetracked by everypost that made me feel that way (such as the recent one where a guy earning 65K could receive state benefits to raise hos kids by putting 50K in a pension) I'd get no where here.

So ignore the ignoramuses and cary on reducing your outgoings. Given you have done this somewhat, I think you need to raid income if only temp. So look at lodgers, selling old stuff on ebay, getting a part time job a few hours at the weekend etc.

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017804 - had you thought of this?

BoGoF

The answer to the original question is that the truth is somewhere in the middle of the propaganda being spouted by both the government and the unions.