We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How much to live on
Options
Comments
-
otb666 said:basically i am not gonna cut myself short for parents when parents have 10 times savings to us As there is no guarantee of any inheritances in todays world
You have said you have income of 23k per annum including a DB. I doubt signing on in 5 to 10 years would yield any more income.
I'm confused by your previous post too.Not Rachmaninov
But Nyman
The heart asks for pleasure first
SPC 8 £1567.31 SPC 9 £1014.64 SPC 10 # £1164.13 SPC 11 £1598.15 SPC 12 # £994.67 SPC 13 £962.54 SPC 14 £1154.79 SPC15 £715.38 SPC16 £1071.81⭐⭐⭐⭐⭐⭐⭐⭐⭐Declutter thread - ⭐⭐🏅1 -
Have just received my pension quote from My CSP - c£26,500 per annum with a minimum £74,500 lump sum up to a max of £131,000 should I decide to commute any. Mix of Classic and Alpha. Due to start partial retirement 2.5 days in August - which should bring in £26,500 in salary. Hope to work for another 3-4 years until wife is ready to retire - she should get around £18k per annum plus her lump sum. Won’t get state pension for another 6 years (in my case) wife longer than that. Alpha pension should accrue a little more over the next few years and next April’s CPI uplift should be in the region of 5-6% (10% expected rate in September 22 but pro-rated). No NI on Pension so if my numbers are right should be on the same as I am now - or perhaps even a little more - but for 2.5 days. Hopefully my calculations are correct 🤞Not sure of the impact of the McCloud judgement and won’t know anyway until October 23 onwards so will worry about it then!1
-
drummersdale said:Have just received my pension quote from My CSP - c£26,500 per annum with a minimum £74,500 lump sum up to a max of £131,000 should I decide to commute any. Mix of Classic and Alpha. Due to start partial retirement 2.5 days in August - which should bring in £26,500 in salary. Hope to work for another 3-4 years until wife is ready to retire - she should get around £18k per annum plus her lump sum. Won’t get state pension for another 6 years (in my case) wife longer than that. Alpha pension should accrue a little more over the next few years and next April’s CPI uplift should be in the region of 5-6% (10% expected rate in September 22 but pro-rated). No NI on Pension so if my numbers are right should be on the same as I am now - or perhaps even a little more - but for 2.5 days. Hopefully my calculations are correct 🤞Not sure of the impact of the McCloud judgement and won’t know anyway until October 23 onwards so will worry about it then!3
-
BooBoo77 said:drummersdale said:Have just received my pension quote from My CSP - c£26,500 per annum with a minimum £74,500 lump sum up to a max of £131,000 should I decide to commute any. Mix of Classic and Alpha. Due to start partial retirement 2.5 days in August - which should bring in £26,500 in salary. Hope to work for another 3-4 years until wife is ready to retire - she should get around £18k per annum plus her lump sum. Won’t get state pension for another 6 years (in my case) wife longer than that. Alpha pension should accrue a little more over the next few years and next April’s CPI uplift should be in the region of 5-6% (10% expected rate in September 22 but pro-rated). No NI on Pension so if my numbers are right should be on the same as I am now - or perhaps even a little more - but for 2.5 days. Hopefully my calculations are correct 🤞Not sure of the impact of the McCloud judgement and won’t know anyway until October 23 onwards so will worry about it then!
going to spend a week or two crunching the numbers to get the right permutation before I sign and then it’s no looking back! But yes the thought of working less time for more or less the same money is a big attraction! Hope yours goes through without any issues and you get what you’re expecting!1 -
I have some public sector db pension so please do not think im getting at any posters.
The governments liabity to public sector(unfunded) pensions is 2 trillion pounds, roughly the same as the national debt.
Are the current final salary and now career average pensions going to be replaced by dc pensions0 -
Kim1965 said:I have some public sector db pension so please do not think im getting at any posters.
The governments liabity to public sector(unfunded) pensions is 2 trillion pounds, roughly the same as the national debt.
Are the current final salary and now career average pensions going to be replaced by dc pensionsThe annual cost of paying unfunded public service pensions is about £50 billion.Annual income from member and employer pension contributions is £48 billion. Although employer contributions are just money moving around the public sector.If you change pensions over to DC the Exchequer still has to meet the £50 billion, but loses all the contribution income which now leaves the Exchequer and goes to a private pension provider.So any change to DC would be a long-term project which would create a short and medium term funding pressure. Governments tend not to do very unpopular things which would only have a benefit in the very long run and costs money for many years to come. Although if a Government were to view it as a populist project stoking divisions from which it thinks it may strengthen its core support that may change things in favour of reform.4 -
hugheskevi said:Kim1965 said:I have some public sector db pension so please do not think im getting at any posters.
The governments liabity to public sector(unfunded) pensions is 2 trillion pounds, roughly the same as the national debt.
Are the current final salary and now career average pensions going to be replaced by dc pensionsThe annual cost of paying unfunded public service pensions is about £50 billion.Annual income from member and employer pension contributions is £48 billion. Although employer contributions are just money moving around the public sector.If you change pensions over to DC the Exchequer still has to meet the £50 billion, but loses all the contribution income which now leaves the Exchequer and goes to a private pension provider.So any change to DC would be a long-term project which would create a short and medium term funding pressure. Governments tend not to do very unpopular things which would only have a benefit in the very long run and costs money for many years to come. Although if a Government were to view it as a populist project stoking divisions from which it thinks it may strengthen its core support that may change things in favour of reform.2 -
Kim1965 said:Seems odd that almost all private db schemes are deemed unaffordable and yet government db schemes are still open to new members.Private DB schemes need to have enough assets today to fund their liabilities.Public DC schemes don't.N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.Not exactly back from my break, but dipping in and out of the forum.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!0 -
Kim1965 said:Seems odd that almost all private db schemes are deemed unaffordable and yet government db schemes are still open to new members.It is all about accountancy and cash-flow.An employer sponsoring a private sector DB scheme has to make good any shortfall, typically with a 10-15 year deficit repayment plan. The liabilities can be huge relative to the size of the employer, so they may not be well-placed to stand behind the scheme. They also have to use discount rates to calculate liabilities based on their investments, and the cost of pensions is included in accounts based on a discount rate calculated from high-quality corporate bonds.Whereas the Government decides what discount rate it uses, and although liabilities calculated based on high-quality corporate bonds are reported in accounts they get very little attention. For example, the NHS pension cost on an accountancy basis is 62.2% of pensionable earnings, whilst the combined employer and employee contributions are 30.4% and it is the contribution rate which usually gets all the headlines. Most of the difference between the accountancy cost and contribution rate is due to the discount rate.The private sector employer has to put real money into the pension scheme to ensure it is fully funded. The Government just pays out liabilities as they arise. That isn't necessarily bad, and may be more efficient as it avoids the cost and volatility of managing huge funds. But it can incentivise the Government to imbalance remuneration in favour of pensions - which cost money many years in the future - to keep pay low, which is an immediate cost. Private sector employers do not face this issue - whether they increase pay or pensions they have to pay for it immediately.When a private sector employer closes a DB scheme they usually save money by replacing the scheme with a less generous DC scheme. Even if they contribute the same % they still reduce risk. So financially they have an incentive to move away from DB pensions and it is just a question of labour relations. Compare that to the Government would have to find up to an extra £50bn each year to move away from DB pensions, with savings arising in the very long run.So it isn't so much about whether they are affordable or not (although in a literal assessment they are - they are a small % of GDP and the Exchequer can stand behind them, although that does not mean they are appropriate - the Exchequer can afford pretty much any single thing, but that doesn't mean it should fund everything). Rather, it is about solving the problem of how to continue to pay existing pensioners whilst not having the contribution income from member and employer contributions in the short to medium term. Pensions are not part of GDP and National Debt, whereas any borrowing to cover that shortfall would be.8
-
The way a DB pension is treated in the company accounts can be a major driver for private sector companies to move away from DB to DC. It's happening with ours at the moment - even though the DB is well funded and in surplus, they are closing it from next April and moving to a DC going forward because the DB "costs" 3 times the DC as far as the accounts are concerned, which makes the company look worse in it's overall financial outlook.
A very poor reason as far as the workforce is concerned, but the board and management are looking up & outwards rather than inwards. At least the deferred DB will continue to revalue at CPI+1.5% in deferment.........Gettin' There, Wherever There is......
I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple1
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards