Pensioners now have higher Incomes than workers

noh

ukcarper wrote: »

The independent says average pension income is £394 a week I do find that difficult to believe.

No they don't say that.
What they do say is that the median pensioners income is £398 a week. That is income from all sources not just pensions.
I suspect it is really pensioner household income rather than individual income.

Edit: The slides from the lecture are here
http://www.ifs.org.uk/uploads/publications/conferences/presentations/Johnson_PMI-presentation.pdf
They confirm that the figures are household income.

Sapphire

I'd reply and argue about this here, but the responses from readers to the article in the Independent really say it all – and I can't be bothered.

Thanks, the Independent, for encouraging ageism and a politics of envy in the ignorant and greedy 'must have it all immediately' group. Only when it comes to the vulnerable group of elderly people is an 'ism' (that is, ageism) politically correct.

stator

100% Inheritence tax. Prison for anyone who tries to avoid it.
Old people encouraged to spend their money = boost to economy
Young people encouraged to earn their money = boost to economy.

Win/Win

ukcarper

noh wrote: »

No they don't say that.
What they do say is that the median pensioners income is £398 a week. That is income from all sources not just pensions.
I suspect it is really pensioner household income rather than individual income.

Edit: The slides from the lecture are here
http://www.ifs.org.uk/uploads/publications/conferences/presentations/Johnson_PMI-presentation.pdf
They confirm that the figures are household income.

Yes typing error should have been pensioneer income and it's not clear what it is.

kabayiri

Perhaps we have to step back and look at the trends in society, particularly around retirement.

For example, people talk about the desire to pass down their property / assets to help their offspring. However, if average life expectancy is now 80+, those same offspring will themselves be approaching pension age in many cases!

If we help people release assets earlier (ie when they retire) in return for pension benefits or other, then we free up housing stock for people with families.

PasturesNew

lisyloo wrote: »

"Pensioners" covers people from 55 - 105.

55-112 http://www.bbc.co.uk/news/uk-england-hampshire-30868964

lisyloo

"Pensioners" covers people from 55 - 105

Let's change it from 55-112.
My point still stands (even more so) that it's a big age group who grew up in very different circumstances and with very different expectations, attitudes and financial knowledge from what we have today.
Many from the top of that age group would not have expected to have even needed a pension.

PasturesNew

lisyloo wrote: »

Let's change it from 55-112.

Well, I just had a 2nd thought of that. I'm 55 and won't get the state pension until I'm 66.

I'd have liked a pension, but never earnt enough and no employers ever offered one. Tried a private one once, but the next time I was out of work I had to stop the payments and, once back in work, couldn't reinstate it without paying in a lump sum equivalent to all the missed payments .... needless to say, after a month out of work it can take you nearly a year to get straight just on the backlog of regular bills...by which time the pension's closed and you can't reinstate it.

lisyloo

If we help people release assets earlier (ie when they retire) in return for pension benefits or other, then we free up housing stock for people with families.

The problem is that people don't know how long they have to live and hence how long their assets need to last them, hence many err on the side of caution.
I'm not sure what you are actually suggesting but equity release schemes are generally a rip-off.

lisyloo

Well, I just had a 2nd thought of that. I'm 55 and won't get the state pension until I'm 66.

I am not saying everyone who's 55 is a pensioner.
I am saying that pensioners can vary in age from 55 -112.

I was simply making the point that it's a wide ranging age group in terms of finances, attitudes and expectations they grew up with. Someone working in the 1920's or 1930's probably didn't have an employer pension scheme, or disposable income or even the expectation of living much beynod retirement.

My MIL (now 88) has an expectation that her family will look after her because that's the generation she comes from. She begrudges spending money on help for personal care (even though it's provided in attendance allowance) because she believes that a family duty (more specifically a daughters duty).
Expectations over pension provision in people over 80 will be very different to ours.

It would be interesting to know what your expectations were as you're 55.
When you started work, did you expect at that time to have to provide for yourself in a pension.
I did from day 1 and I'm 47 but then I worked for a good ~"white collar" employer who provider that type of advice/benefit.