what's the worst that can happen?

Derivative

I'm not a historian, but I do think people put too much faith in their governments.

The basic state pension, then known as the "Old Age Pension" was introduced in the United Kingdom (including Ireland) in January 1909.

Before then I assume we had workhouses, or people simply lived with their families.

That's 100 years. It's barely more than a lifetime. At most, it's two working lifetimes.

You should be saving because there is absolutely no guarantee that Governmental support is anything but ephemeral.

jamesd

Camdoon wrote: »

This is what the next pension reform is trying to sort out. With Brown's model unless you were going to earn £15k per annum and contribute for over 30 years (probably worse now as annuities have worsened since then) then it was not worth saving in a pension as you would receive the same amount in means tested benefits.
I believe that everyone should be saving for their retirement and not penalised if they have done so.

So you oppose the proposed change?

The proposed change takes money away from those who work for life, with even someone on minimum wage getting around £190 a week from the combined basic and additional state pensions. The new proposal stops that additional state pension accrual and instead replaces part of the welfare budget, giving the money to those who would have been on means tested benefits. Instead of £190 a week that minimum wage worker would get £144.

The result: those who didn't provide get money as a right that's taken from those who did. Meanwhile those who have been working lose the first part of their pension investing because it has to replace the part that's been taken from them.

[Deleted User]

We don't know what's going to happen re pensions in the far future - I think it's logical to assume there will be SOME state pension but at what level, no-one can guarantee. It's not predictable, so there's no point trying to.

My view on it is that SOME savings are always a good idea because, basically, it gives you more choices in your life, and therefore more control over what happens to you. Otherwise you are totally at the mercy of what is available (or not) from others (including the govenment).

However, for me, it's all about balance. Yes, have some savings, but don't let that goal take over your life.

I've watched in horror as three lots of friends who have saved and saved and saved (driven by fear of "what ifs"), have retired with healthy pensions, large amounts of savings AND awful health (one is currently awaiting a heart by-pass op). They're now finding that those lovely holidays they looked forward to are out of reach (they're not well enough to travel or no-one will insure them to fly OR they just don't have the confidence to try) and that a lot of the money they saved is now being spent on things they need because they're ill.

So my attitude is - pay into a pension and have SOME savings, but don't get obsessed by it. Find ways to cut your outgoings if possible, find low cost ways to enhance your life, and make your health your No 1 priority.