Pensions envy. Are we heading for financially comfortable but socially uncomfortable retirements?

Workerdrone

For me and probably quite a few on here pension saving is almost a hobby. I set a target date and amount and I get a kick out of finding ways to put extra away or when I see my pot grow.

But I realise this is not for everyone. When reading the news/other forums/Facebook editorials I tend to jump on articles which mention pensions. Having read the article, I then scroll down to the comments.

Theres a shocking amount of negativity around pensions in general, ranging from "I can't afford to save anything", "Who on earth has a million pound pension:", "It's the governments fault we have the lowest state pension in Europe" to "Pensions are a con".

Interspersed in this is the very occasional voice of reason pointing out the tax breaks and even the odd brave soul staring the uncomfortable truth "If you don't save, you have no-one to blame but yourself". Still it all seems to fall on deaf ears.

It seems the majority of Britains are still content to bury their heads regarding retirement savings whilst at the same time splurging on the latest phones, subscriptions, frothy coffees, foreign holidays and eating out.

Right now, the negativity is constrained to the comments section, but I also realise these people are our peer group and in 15-25 years time they are facing a bleak retirement whilst those like us who save are not.

Given the tendency for people to blame others/circumstances for their own misfortunes alongside suggesting others success was somehow a matter of luck or even immorality as opposed to hard work and fiscal prudence, are we facing a retirement where out hard saved for nice cars, holidays, meals and general lifestyle attract negativity (Or in the case of nice cars even vandalism)

pip895

We have just experienced a very benign period of investment growth.  What concerns me is what happens if we have 10 or more years where investments barely keep up with inflation- try persuading people to invest in pensions in that environment!

The envy could then be directed at anyone with a government or DB pension. This forum could be full of people asking if they have a case against the IFA that allowed them to transfer their DB pension, rather than those bemoaning the fact that they can’t find an IFA willing to let them..

Dazza1902

Auto enrolment has got the proportion of people with pensions increased, albeit at too low  contributions.
 I have been self employed for most of the last 23 yrs, the vast majority of trades I know have no provisions for retirement. Madness, would I feel uncomfortable for having made some plans, no.

Workerdrone

pip895 said:

We have just experienced a very benign period of investment growth.  What concerns me is what happens if we have 10 or more years where investments barely keep up with inflation- try persuading people to invest in pensions in that environment!

The envy could then be directed at anyone with a government or DB pension. This forum could be full of people asking if they have a case against the IFA that allowed them to transfer their DB pension, rather than those bemoaning the fact that they can’t find an IFA willing to let them..

I think to a degree it already is. How many articles and comments reference "gold plated pensions". It's the same as the ire directed at the boomer generation for "having it easy". Without getting into the specifics of either situation it seems to be more a thing of human nature to blame others/circumstance for your own failings. Whilst that's ok while the failing group is in the minority, what happens when it becomes the majority?

steampowered

In 2012, less than half of UK employees were saving into a pension.

Thanks to auto-enrolment, today it is about 80%.

While people love to whinge in the comments section of facebook, most people are actually saving into a pension. Many people may not be saving enough for a comfortable retirement, but at least with the state pension on top, it should be enough to live on.

Sea_Shell

It's not just the pure financial element of "envy" either, but also the ability to early retire, if you choose to, as opposed to those who are paying something into a pension, but will still have to work until they get their SP.

I've kept my early retirement on the down low, as to not be accused of rubbing anyone's noses in it.   

We could have kept working and swelled the coffers even more, but we decided to call time on work!!

Workerdrone

Sea_Shell said:

It's not just the pure financial element of "envy" either, but also the ability to early retire, if you choose to, as opposed to those who are paying something into a pension, but will still have to work until they get their SP.

I've kept my early retirement on the down low, as to not be accused of rubbing anyone's noses in it.   

We could have kept working and swelled the coffers even more, but we decided to call time on work!!

Thats the nice thing about this forum, its a place to take openly without fear of reprisal.

dunstonh

Theres a shocking amount of negativity around pensions in general, ranging from "I can't afford to save anything", "Who on earth has a million pound pension:", "It's the governments fault we have the lowest state pension in Europe" to "Pensions are a con".

Nothing new about that.  Been like that for generations.   They will either grow up at some point or realise their mistake when they get to retirement and get used to living with little to spend.

Ini the 80s and 90s, the number of people with pensions was good.  It dropped significantly with the introduction of the stakeholder pension.  Mainly as the insurance company agents closed down.  Their products were generally expensive by today's pricing but they did get lots of people to save and regularly top up.   The Government hoped that a cheaper pension product would see people deciding for themselves that they should save.  It didn't work.   However, since auto-enrolment came in, things have much improved.

It seems the majority of Britains are still content to bury their heads regarding retirement savings whilst at the same time splurging on the latest phones, subscriptions, frothy coffees, foreign holidays and eating out.

Do not mistake the highly vocal minority as being greater than the silent majority.

Thats the nice thing about this forum, its a place to take openly without fear of reprisal.

You would like to think so......

Flugelhorn

Workerdrone said:

Sea_Shell said:

It's not just the pure financial element of "envy" either, but also the ability to early retire, if you choose to, as opposed to those who are paying something into a pension, but will still have to work until they get their SP.

I've kept my early retirement on the down low, as to not be accused of rubbing anyone's noses in it.   

We could have kept working and swelled the coffers even more, but we decided to call time on work!!

Thats the nice thing about this forum, its a place to take openly without fear of reprisal.

Was just thinking about how to put that and you did it so neatly  We have a couple of healthy DB pensions but tend to keep a low profile on spending (habit )

1813

I have about around a £10k income so far built up just under twenty years of working, which isn’t too bad. All of these are DB investments, inclusive of the state pension. 

Thing is, I’m not satisfied things will remain the same in thirty years if I retire. 

My main concerns are:

will the state pension disappear?
will index linking still exist/my db pension continue to grow? 

what will the cost of living be in 2050 when I retire?

OldBeanz

I remember folk complaining about Thatcher in the mid 80's when pensions were not increased by inflation. Folk had the warning then.