pensions freedom will solve the UK’s housing ‘shortage’

Generali

lisyloo wrote: »

Does she get "well over half" her salary in pension?

If she does I think it's an exception for that age group of women with final salary pension schemes, rather than a common expectation.

I reckon. She bought extra years (at a fraction of their actual cost) and got a big pay rise in her final year to bump up her pension.

lisyloo

Fantastic.
As you say most of us cannot expect that, unless we save very hard.

chucknorris

Generali wrote: »

My feeling is that when the pensions system is shown to be bankrupt (state pensions are a state sponsored Ponzi scheme in a very literal way), that is when Granny is going to be forced to sell her house.

You can't expect to work for 30 years and then spend 30 years with your feet up on an index-linked pension of well over half your salary from an unfunded pension scheme.

I wonder how many years the Gov will continue paying it, before they finally admit to the public that it can't continue, looks like I'll make it (probably, as I'm 57) to getting some or all of my share out of it, before the roof falls in.

I've always thought that the best way to deal with this, would be for the Gov to freeze the state pension and let inflation slowly do the job for them. It would reduce the shock a bit, and give people time to adjust and plan.

I don't think that the Gov went far enough with the recent revisions to public sector pensions.

theEnd

Loughton_Monkey wrote: »

2. They continue to stabilise the economy, grow, and pay down the debt.

What debt is being paid down???

Jonbvn

Ah that huge hypocrite MSM.

Why would anyone take her or that rag seriously?

Loughton_Monkey

theEnd wrote: »

What debt is being paid down???

Your question proves you didn't read or understand the post.

Generali

lisyloo wrote: »

Fantastic.
As you say most of us cannot expect that, unless we save very hard.

True and the 30 years is a bit of an exaggeration for effect. In the 90s it was normal to get rid of staff in their 50s by pensioning them off. The bank I worked for would have gotten rid of thousands on 3/5ths final salary in their mid-50s.

Your life expectancy in the UK at 60 is about 30 years now IIRC.

lisyloo

The reduction in the number of final salary schemes, the reduction in the generosity of those schemes, rising state pension ages, lower investment growth plus the increase in longevity are all factors that are going to make it harder for people to retire early going forward in general. Not to mention housing costs sucking the life out of disposable income (as it happens I've been looking at a London flat and even to buy a 1-bed we'd both need to sacrifice our pension contributions completely and that's for the smallest thing we would find acceptable - we're not going ahead BTW)

Yes, my expectation is quite seriously to live to 90 and has moved upwards during my working life. I look at that as generally a positive thing, but it does make it harder to finance retirement for the majority who don't have any guarantees.

redux

Loughton_Monkey wrote: »

. I am considering the following scenario. OK, not the most likely, but it could happen all the same......

1. The conservatives win the election with a comfortable working majority.
2. They continue to stabilise the economy, grow, and pay down the debt.
3. Even further, they successfully instigate some massive house building programs that make house prices completely stable.

If you'd made that prediction 5 years ago you'd have been disastrously wrong.

The national debt has doubled.

Construction of new houses has reached its lowest level in about 90 years.

Neither of these facts is solely due to the malign influence of the Liberal Democrats being in the coalition.

purch

It may come as a shock to you, but 5 years ago the Conservatives did not win the election and have a comfortable working majority.

Therefore as 1. didn't happen points 2 and 3 couldn't possibly