How much do you think you’ll need to save up to retire on?

Alexland

crv1963 wrote: »

I think that is the whole point!

Yes but what's the point from an individual's perspective? With a pension you either need to commit to doing it properly or not at all. Contributing single digit percentages is likely to turn out to be a waste of money.

Alex

Apodemus

Alexland wrote: »

Yes but what's the point from an individual's perspective? With a pension you either need to commit to doing it properly or not at all. Contributing single digit percentages is likely to turn out to be a waste of money.

Alex

I thought the idea was that the statutory minimum would rise over time as the public gained a wider acceptance of it. Going straight in with a meaningful proportion of pay would have been viewed as an additional tax and been a vote-loser.

Alexland

It might be the idea but I haven't seen plans yet to get it to any meaningful level.

Former_MSE_Andrea

Thanks for your all your comments everyone.

Talk Money Week's aim is to encourage people who may feel too daunted talking about finance to make that start.

Thank you for helping them

crv1963

Alexland wrote: »

It might be the idea but I haven't seen plans yet to get it to any meaningful level.

I think that the Govt. aim is to get people to save enough to get them out of the "top up benefits", not necessarily get them to a meaningful pension. I speak to people in their 40s who tell me that as they have auto-enrollment pension "I'm sorted" a universal con in my view.

lisyloo

Alexland wrote: »

Yes but what's the point from an individual's perspective? With a pension you either need to commit to doing it properly or not at all. Contributing single digit percentages is likely to turn out to be a waste of money.

Alex

Don’t people get statements with a forecast on? I thought that was even a legal obligation.
Some people might not read it in which case I think our obligation towards then ends and it’s then down to personal responsibility.

Not everyone can afford massive contributions especially if they have just started a family.
I also think it would never have got off the ground if it hadn’t started small. At least it’s making people aware. If they chose to ignore it then there is little the state can do. Even if rates are raised they will still not be enough, I mean it just wouldnt be right to force everyone to make large conttibutions.

coyrls

MSE_Andrea wrote: »

Thanks for your all your comments everyone.

Talk Money Week's aim is to encourage people who may feel too daunted talking about finance to make that start.

Thank you for helping them

Not sure it's started new people talking on this thread; apart from the OP, there is only one post from somebody with less than 100 previous posts on the MSE Forums.

Former_MSE_Andrea

coyrls wrote: »

Not sure it's started new people talking on this thread; apart from the OP, there is only one post from somebody with less than 100 previous posts on the MSE Forums.

Hi

Talk Money Week is our Campaign of the Week in this week's email, where we'll be linking to the Hub post.

We're hoping these conversations will encourage newbies to the thread from there and from our social media channels.

crv1963

I think anything that raises awareness is to be commended. If a few people take appropriate action then that is great. There is a wealth of knowledge available and I for one am thankful that I took the time to read others threads and for the answers I've had to my questions while I grappled with getting to know the best way forward for us.

badmemory

Unless something is done to improve auto enrollment it is going to be a disaster for a lot of people. There are too many people who do not understand financial matters much beyond can I afford to pay this bill. They are doing the right thing & contributing to a pension & often don't seem to realise that the small amounts that are going in will add up to such a small amount over 40 years that the pension company will be insisting on paying it all out at retirement age.


With employers putting bottom and top limits on what they will contribute on their 3% & the employees 5% are barely making £100 a year. Even if it is paid on all earnings the employee would have to start paying the full %age at 16 to make the pension significant.


Auto enrollment should have been a really good idea, but this combined with the new state pension is going to leave a lot more people in poverty once they have to retire.