Are the young losing all faith in pensions?

gadgetmind

corbyboy wrote: »

For this we have been promised no more changes for the next ten years.

No such promise has been made for private pensions (basically saving your own money into stocks and shares to give you an income in old age) and nearly ever budget over the last few years has seen serious and damaging attacks on them.

Right now, I'd love such a promise even if I suspected it might be bent a little in the future.

racing_blue

atush wrote: »

hugh, that is a cheap car lol

And last time i saw an estimate- the average uk wedding was over 20K lol.

Good luck ;-)

I know you are joking atush but I would see even £5k as very expensive indeed if it stopped me paying into pension!

As for the 20k wedding... where to start!? Fair enough if someone else is paying, or if you can lose £20k from spare change. But that £20k came at the expense of five years pension contribution, employer matched, I'd consider it money very poorly spent

marathonic

racing_blue wrote: »

As for the 20k wedding... where to start!? Fair enough if someone else is paying, or if you can lose £20k from spare change. But that £20k came at the expense of five years pension contribution, employer matched, I'd consider it money very poorly spent

I would agree - but would be very hesitant in trying to explain this to any future potential partner... lol...

atush

racing_blue wrote: »

I know you are joking atush but I would see even £5k as very expensive indeed if it stopped me paying into pension!

As for the 20k wedding... where to start!? Fair enough if someone else is paying, or if you can lose £20k from spare change. But that £20k came at the expense of five years pension contribution, employer matched, I'd consider it money very poorly spent

I agree, my dress cost $500 and the reception about $4K.

But that is what young people spend these days, and they put off all sorts from pension to house purchases to do so. Nothing to do with Ipods, as far as I know lol.

I bought a secondhand Peugot 3-4 years ago for 5.5K and it was a number of years old. So yeah, 5K now would buy a much older car perhaps?

atush

I can genuinely see a point where there will be no state pension for people who have sorted out their own pension provisions.

You may be able to see this, I don't.

For the single reason that more pensioners vote than any other group and any party who tried it would not be in govt very long.

The only way to future-proof yourself from future pensions is to pay in enough now (incl perhaps a PP or AVCs alongside your DB pension) and saving outside of pensions in ISAs and other things.

Reue

Lokolo wrote: »

But it doesn't mean people can't ask.

Yes we get a lot of silly questions on this forum, but at least the people are asking. I didn't learn how to drive in school or through my employer. I went out and found a driving instructor.

I didn't know how to unblock a toilet, so I went and found out.

Why can people not do the same about pensions? Well, they can. But they choose not to.

I chose to and glad I did. You did, and you are glad you did. Others could to, but they just don't give a damn.

Its easy to say that people can ask questions (and they should!) but it's hard to do that without knowing that to actually ask.

With absolutely no mention of pensions in school and alot of employers not offering any schemes, its not surprising that for so many young people the thought never even crosses their mind. Heck, the thought hadnt even crossed my mind until my employer asked if I wanted to join their scheme. Had they not.. my pension pot would still be at 0.

atush

and alot of employers not offering any schemes,

Valid years ago maybe, but are you aware it is no longer the case?

Reue

atush wrote: »

Valid years ago maybe, but are you aware it is no longer the case?

I know its currently being rolled out, however this may not help the situation.

"Oh, I dont need to worry about my pension, im automatically in one"

While their 4% combined minimum contributions eventually lead to a huge shock come 65yr old and they realise they wont be getting £30kpa in retirement.

atush

It won't be a shock if they open the first year's statement including projected pension? Then they can take the decision to invest more?

Reue

atush wrote: »

It won't be a shock if they open the first year's statement including projected pension? Then they can take the decision to invest more?

It's a nice thought. I know of several friends who dont even bother to open payslips or bank statements.

Some people just cant be helped.

I still think the easiest and best solution would be some basic school education on it. Even if only an hour and the end of the year for the year 11s/13s.