MSE News: Schools to teach teenagers about pension planning

Former_MSE_Paloma

"Schools are to provide those aged 13 and over with lessons on pension planning, the Government has announced ..."

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Schools to teach teenagers about pension planning



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kidmugsy

Many of whom have trouble with the 3 Rs. Good luck with that.

Oblivion

It would be a subject worth teaching if the government (of whichever flavour) didn't keep moving the goalposts whenever it suited them.

Pincher

A waitress brings the bill, the customer asks:
"would you like a tip?"


She smiles.


Customer says: "Marry a doctor."

---

A woman runs into a busy train station, and shouts:
"DOCTOR, DOCTOR, is there a doctor in the house!?"


A man replies: "Yes, madam, I'm a doctor, how can I help?"


She says: "Oi, doctor. Have I got a daughter for you!"

Ectophile

Anything they are taught will most likely be out-of-date by the time they leave school, let alone when they retire.

In the last few years, the state has gone from encouraging people to opt out of the state pension to put the money into a private one. Then they said it wasn't such a good idea. Now they have stopped it entirely, and you have to pay into the state scheme again.

jamesd

Those last few years started back in 1978, 37 years ago, almost a full working life, when contracting out was first introduced. The flat rate changes have reinforced the idea that it was a good idea to be contracted out at least into personal pensions.

Stopping contracting out is a money grab by government to help to fund paying pensions for those who don't work much by charging those who work a lot. You don't stop paying the NI even if you've a full entitlement to the state pension so forcing people to stay in gets that money with nothing more to pay out. While with contracting out you'd continue to benefit from working more.

waspsandjam

An excellent idea. I think most people (including teachers) could do withknowledge of the principles of pensions (which don’t change) and investmentcompounding.

It’s hard for children to see 10 years into the future, let alone 40+ so it’sgoing to be a challenge. Some 40 year compound calculators changing monthlycontributions and investment returns may help illustrate the point and make itmore involved.

Showing pension rules that governments can change, and which they havechanged, is also very important to reduce uncertainty and misconceptions. Thiscould include pension options which offer more protection against governmentinfluence e.g. private / company / public sector / state.

gadgetmind

jamesd wrote: »

You don't stop paying the NI even if you've a full entitlement to the state pension so forcing people to stay in gets that money with nothing more to pay out.

We're both going to knock work on the head once we fully qualify for the new single tier.

gadgetmind

How on earth are teachers, most of whom have zero knowledge regards the kind of pensions that most people have (or even that teachers themselves have!) going to be able to explain this properly to kids?

I expect they'll be using the old "one page ahead" approach.

Pincher

gadgetmind wrote: »

How on earth are teachers, most of whom have zero knowledge regards the kind of pensions that most people have (or even that teachers themselves have!) going to be able to explain this properly to kids?

I expect they'll be using the old "one page ahead" approach.

What about sentencing all these bankers who fixed LIBOR rates etc. to do some community service by doing school visits?


From April, there should be some unemployed annuity clerks looking to retrain.


If the EPC inspectors haven't starved to death yet, they can retrain as well.

Credit-Crunched

Teachers talking about pensions! Incredible.

They do not think that a career average final salary pension is a decent one!

Maybe when they look at the returns on a DC pension, they make take a step back and realise, that the DB ain't too bad after all!