Pensions will not exist by 2050, expert warns

Silvester

Hi all,

I'm not sure how many will have already read this article, but I recently came across an article on the Telegraph suggesting that this expert believes Pensions will not exist by 2050.

Source

I just wondered what peoples opinions on this were.

It would seem very unusual to me for Pensions to not exist any more when the current Government are making such a big push to get everyone into a pension scheme.

And I wonder what would happen if Pensions were scrapped. Could we just have our pots? and if so, would it be tax free, taxed all in one go...

Interesting food for thought. Would be interested to get other peoples views.

dunstonh

I was waiting for someone to post this one. It's surprising how much the media like presenting the opinion of one person as news.

it would seem very unusual to me for Pensions to not exist any more when the current Government are making such a big push to get everyone into a pension scheme.

And when you think they have existed for over 50 years.

This is all a case of someone trying to guess the future. Do you think that in 1900 anyone could have predict the following 50 years? In 1950, do you think they could have predicted the following 50 year period. If you look at anything trying to predict the future, they get it wrong.

A sony walkman doesnt resonate with youngsters today. An Apple Ipod does. Yet they both play music for when you are out and about. The name doesnt matter. The objective is the same. Personal pensions that exist today are nothing like the personal pensions of a decade ago, let alone 20 years ago. Yet they still have the same objective.

Aegis

I always despair when I see the words "think tank" and "pensions" close together, as they usually show a complete lack of understanding of the issues...

lvader

There are a few points that I agree with but I don't accept his conclusions. Rather than pensions becoming extinct I think we will see more legislation making pension payments mandatory.

bigfreddiel

dunstonh wrote: »

Do you think that in 1900 anyone could have predict the following 50 years? In 1950, do you think they could have predicted the following 50 year period. If you look at anything trying to predict the future, they get it wrong.

This is exactly why I would never pay for any type of financial advice, no one can predict what lies ahead, all an advisor is selling is knowledge of the current rules, regulations, loopholes that may be beneficial to ones wealth.

Most of these can be worked out if you apply a little effort yourslf, if you can't then pay for someone to do it for you.

DiggerUK

Pensions will not exist as they do in 2050, how close to the actualite the Telegraph story is, we will have to wait for.

Any half wit would have realised that Walkmans would not be providing mobile music today. Just as anybody with half an ounce of common sense, will know that iPods will not be doing that job in 2050. Not all the futures secrets can be predicted, but the future is not a complete bag of mysteries.

The pensions industry is finding it impossible coming to terms with the public cottoning on to the difference between pensions of yesterday, which had guarantees, and pensions today being the highest risk gamble they are ever likely to make.That public are not so easily taken in by the Money Losing Experts these days.

Anybody who wants to put by for old age, would be best served with a retirement fund that avoided such guaranteed losses.
..._

Linton

There are two different issues that the article seems to be confusing. The first is whether some differently structured way of saving for one's retirement other than the current pension will be in place by 2050. Well I am sure it will but, as others have pointed out, much the same could be said about anything and so its hardly worthy saying.

More worrying (not for me but for those who retire in say 40 years time) is this quote:

Telegraph wrote:

The long term objective for youngsters is to aim to be a debt-free homeowner when they reach retirement. Nothing else.

This may be a valid statement for some youngsters but is it something the "expert" approves of? Oddly he or the article doesnt say though it does say that saved funds should be accessible well before retirement which suggests that they do approve. How do they think people's retirement should be financed? For it not to be self-funded is a strange view to take for a conservative think-tank being quoted by a Conservative newspaper.

Aegis

DiggerUK wrote: »

Anybody who wants to put by for old age, would be best served with a retirement fund that avoided such guaranteed losses.
..._

What guaranteed losses?

lvader

Aegis wrote: »

What guaranteed losses?

When the world as we know it ends and only physical gold and silver can save you.

mania112

Perhaps the article was written by someone looking at a Mayan Calendar and forgot to mention that it won't just be pensions that won't exist in 2050...

StevieJ

Seems to be something of an agenda there, emphasised by describing an incentive as a bribe,

“The word ‘pension’ does not resonate with Generation Y. Immediate access to savings is far more important to them than the 20 per cent bribe that is tax relief.”