worst pension ever

atush

rob404uk wrote: »

Blimey, this went on a bit. The title was a bit of an attention seeker, of course I know as it stands it is still a good pension. My main point was that I am further away from retiring than when I started and for that I have been asked to pay more. Also that in another 20 years, the government might decide that retirement age might need to go up another 10 years.

Thanks for your replies though, even the public sector bashers. You have helped me to quickly gain knowledge on this matter and if we all believed the same thing it would be a pretty boring place.

Think about increasing your out of pension savings and investments. This will give you the option to retire earlier that others like the govt may want you to? Give you flexibility.

fairleads

atush wrote: »

Think about increasing your out of pension savings and investments. This will give you the option to retire earlier that others like the govt may want you to? Give you flexibility.

Its called financial independence and glad to see that some diehards are finally getting the message:j

atush

I've always had the message, I am more open minded than those who say ISAs only.

jem16

GillyR-J wrote: »

Only for their teachers pension

I assumed that was what you were talking about as the changes to the state pension age for women from 60 to 65 were first brought through in 1995. That would mean that from their middle to late thirties, no women younger than that would be expecting to receive their state pension at age 60 and would at least have been age 65.

GillyR-J

jem16 wrote: »

I assumed that was what you were talking about as the changes to the state pension age for women from 60 to 65 were first brought through in 1995. That would mean that from their middle to late thirties, no women younger than that would be expecting to receive their state pension at age 60 and would at least have been age 65.

No for my age group we were not informed it would 65 until much later...when it was extended again I personally was given conflicting information from my employer, NIC and work and pensions of my pensionable age.
The other issue is whether women who have taken career breaks have enough NICs. I used the home responsibility scheme and have enough, other colleagues don't.

xylophone

No for my age group we were not informed it would 65 until much later..

http://www.web40571.clarahost.co.uk/statepensionage/SPA_history.htm

SeekTruth

hyubh wrote: »

The context is hugheskevi's official stats for private sector DB schemes, which show employee rates to be (to me) surprisingly low.



You sure about that? Remember we're talking about DB, and in particular final salary schemes.

The private sector DB schemes that I know about (admittedly you could count them on the fingers of one hand) all provide LPI (Limited Price Indexation) of pensions in payment. The indexation being limited to 2.5% for recent accruals. Public sector schemes, as far as I know, do not limit the inflation increases.

jem16

GillyR-J wrote: »

No for my age group we were not informed it would 65 until much later

Although not implemented until 2010, as you will see from xylophone's link the plans were first announced in 1995.

I'm 56 and female - I have known about not being able to receive my state pension until age 65 for a long time as do all my similarly aged friends/colleagues. Anyone who didn't know has either stuck their head in the sand thinking retirement was too far away to bother about or are kidding themselves on.

The other issue is whether women who have taken career breaks have enough NICs. I used the home responsibility scheme and have enough, other colleagues don't.

Most women who take career breaks took them to bring up children so HRP would count for them. Some women would have paid the small married woman's stamp and so it wouldn't have mattered how many years contributions were made. However as that was abolished in 1978, most women in their late fifties now would not have paid that.

CLAPTON

GillyR-J wrote: »

No for my age group we were not informed it would 65 until much later...when it was extended again I personally was given conflicting information from my employer, NIC and work and pensions of my pensionable age.
The other issue is whether women who have taken career breaks have enough NICs. I used the home responsibility scheme and have enough, other colleagues don't.

not sure what you mean that you 'used' the home responsibility scheme
it is an entitlement, subject to a number of conditions; basically that you received child allowance and had a minimum number of 'real' NI years

hugheskevi

The private sector DB schemes that I know about (admittedly you could count them on the fingers of one hand) all provide LPI (Limited Price Indexation) of pensions in payment. The indexation being limited to 2.5% for recent accruals. Public sector schemes, as far as I know, do not limit the inflation increases.

Indexation of RPI capped at 5% is commonplace, not that many schemes went down to 2.5% when the statutory amount fell.

But, the majority of private sector schemes index by RPI, whereas all public sector schemes are CPI.

Would be interesting to look at some Monte Carlo analysis to see which of uncapped CPI or RPI capped at 5% has the higher expected value - my guess is that there wouldn't be much difference.