Will my pension keep pace with inflation?

QrizB

sevenhills said:

Average pensioner income = £17,212

https://www.gov.uk/government/statistics/pensioners-incomes-series-financial-year-2019-to-2020/pensioners-incomes-series-financial-year-2019-to-2020

You've stated that your current income is £18k and that you expect your combined pensions to be higher than that, so it seems as though you will be an above-average-income pensioner.

sevenhills

QrizB said:

You've stated that your current income is £18k and that you expect your combined pensions to be higher than that, so it seems as though you will be an above-average-income pensioner.

My WYPF is around £4k now, if I carry on working to 65 it will be £6k, but my income will feel higher because I will have no mortgage. I don't expect to carry on working to 65, but it is possible.

If pensions increase less than real inflation, being mortgage free will make a big difference.

sheslookinhot

Remember that every extra £100 saved in a SIPP will increase your pension pot by £25. May be better than paying off your mortgage.

atush

Reg_Smeeton said:

sevenhills said:

In previous years the state pension had the triple lock, but this year it is increasing by 3.1% when RPI inflation is presently 7.8%

I’m astounded more was not made of the governments broken promise on the triple lock. I know it was the wages part that was suspended rather than inflation on this occasion, but the precedent has been set now that if the numbers aren’t what the government want to see they will just override it.

Im astounded you think taxpayers can afford it, with the huge costs of the pandemic

Thrugelmir

sheslookinhot said:

Remember that every extra £100 saved in a SIPP will increase your pension pot by £25. May be better than paying off your mortgage.

May be may be not. Only hindsight will provide everyone with the answer. 

sevenhills

sheslookinhot said:

Remember that every extra £100 saved in a SIPP will increase your pension pot by £25. May be better than paying off your mortgage.

My mortgage is a 10 year fixed rate, so prolonging it further, with interest rates rising, may not be a good idea.

I do have a SIPP

Reg_Smeeton

atush said:

Reg_Smeeton said:

sevenhills said:

In previous years the state pension had the triple lock, but this year it is increasing by 3.1% when RPI inflation is presently 7.8%

I’m astounded more was not made of the governments broken promise on the triple lock. I know it was the wages part that was suspended rather than inflation on this occasion, but the precedent has been set now that if the numbers aren’t what the government want to see they will just override it.

Im astounded you think taxpayers can afford it, with the huge costs of the pandemic

Whilst we can afford to spaff endless billions up the wall on nuclear weapons we will never use, I really don’t think a few extra quid a week on the state pension to keep good on the promises you were elected on is pie in the sky. It’s going to be a long hard year for the most vulnerable who rely upon it.

Thrugelmir

Reg_Smeeton said:

atush said:

Reg_Smeeton said:

sevenhills said:

In previous years the state pension had the triple lock, but this year it is increasing by 3.1% when RPI inflation is presently 7.8%

I’m astounded more was not made of the governments broken promise on the triple lock. I know it was the wages part that was suspended rather than inflation on this occasion, but the precedent has been set now that if the numbers aren’t what the government want to see they will just override it.

Im astounded you think taxpayers can afford it, with the huge costs of the pandemic

Whilst we can afford to spaff endless billions up the wall on nuclear weapons we will never use, I really don’t think a few extra quid a week on the state pension to keep good on the promises you were elected on is pie in the sky. It’s going to be a long hard year for the most vulnerable who rely upon it.

A few extra quid understates the true cost to taxpayers as a whole.  

ewaste

Reg_Smeeton said:

Whilst we can afford to spaff endless billions up the wall on nuclear weapons we will never use, I really don’t think a few extra quid a week on the state pension to keep good on the promises you were elected on is pie in the sky. It’s going to be a long hard year for the most vulnerable who rely upon it.

Even if we used the figure the CND have dreamed up for UK Nuclear Weapons Spending £205 billion over the programme lifetime of 50+ years. You can probably be sure that includes guesstimates for everything from the cost to the NHS of the maternity and through life costs for crews that haven't even been born yet to the cost of toilet roll at the yards or on the sub.

That amounts to about a ballpark of £4.1billion a year on UK Nuclear weapons. According to the ONS the UK Government spent £101.2 per year on the State Pension therefore a 5% (£106.26 Billion) rise already blows away any savings from the UK unilaterally ditching Nuclear Weapons. Arguably the cost of a 5% increase to the state pension is even worse due to demographics. 

Therefore at the end of the day nothing more than a bit of whatabouttery...

Reg_Smeeton

Annoying paywalled article, but maybe I’m not the only eccentric 

https://www.telegraph.co.uk/pensions-retirement/news/even-governments-people-admit-triple-lock-didnt-need-broken/