How safe is your pension? Channel 5. Any thoughts?

arnoldy

Sea_Shell said:

So far our (early) retirement has been made up of a pandemic, war in Europe, inflation and a market slump....it's going swimmingly 😉

Yes here is my experience in semi retirement:

• Market slump September 2018 - Jan 2019
• Pandemic 2020
• Inflation reawakened with a vengeance
• Tax rises including fiscal drag, and limiting of pension LTA
• Green taxes and green washing industry - we are now all paying £500-600/yr green and social levies on energy + having to think about putting aside £50,000-£80,000 for heat pumps, electric cars etc. Utterly unaffordable for most. All those green costs are coming, agree with it or not.
• Financial repression of interest rates of 1.25% whilst inflation is heading north to 11% +. 
• The Government trying to be everybody's friend splashing the dosh and adding to inflation.

what a mess. As ever control what you can control. When (not if) this sort of set of challenges arise in 25 years time when everybody* will be on market invested DC pensions it will be a real shocker of large swathes of the population unable to cope.

* Basically all those in private sector (25 million +)

QrizB

arnoldy said:

• Green taxes and green washing industry - we are now all paying £500-600/yr green and social levies on energy + having to think about putting aside £50,000-£80,000 for heat pumps, electric cars etc.
  

No we aren't, and no we're not. But this isn't the thread for that particular discussion.

SouthCoastBoy

I'm already 100% dc, so won't be retiring any time soon

DT2001

arnoldy said:

Sea_Shell said:

So far our (early) retirement has been made up of a pandemic, war in Europe, inflation and a market slump....it's going swimmingly 😉

Yes here is my experience in semi retirement:

• Market slump September 2018 - Jan 2019
• Pandemic 2020
• Inflation reawakened with a vengeance
• Tax rises including fiscal drag, and limiting of pension LTA
• Green taxes and green washing industry - we are now all paying £500-600/yr green and social levies on energy + having to think about putting aside £50,000-£80,000 for heat pumps, electric cars etc. Utterly unaffordable for most. All those green costs are coming, agree with it or not.
• Financial repression of interest rates of 1.25% whilst inflation is heading north to 11% +. 
• The Government trying to be everybody's friend splashing the dosh and adding to inflation.

what a mess. As ever control what you can control. When (not if) this sort of set of challenges arise in 25 years time when everybody* will be on market invested DC pensions it will be a real shocker of large swathes of the population unable to cope.

* Basically all those in private sector (25 million +)

If you look at Sea_shells excellent thread their pots are fine - the same as two years ago - after drawing £31k.

People adapt. My parents cut their cloth to suit their circumstances having no DB pension provision or large pot.

The divide between haves and have nots may increase as I think inherited wealth will play a bigger part. I intend to help fund my children’s pensions by leaving funds in a SIPP to them 

DT2001

SouthCoastBoy said:

arnoldy said:

What this programme reinforced with me is how difficult it is for the grafters in the UK with so much tax. 

Earn £25 - 30 grand and pay marginal tax of 20% income tax;13.2% NI, Graduate tax 9%, pension contributions 8% .....and then have to buy a house at ££s astronomical + upkeep. And then get hit for £2.5k community charge out of what's left of your take home. That's before utility bills - but you wont get the £650 + handout you would get if you didn't graft.

Oh and also their pension means they are not better of than those with nothing. They claim pension credit which also unlocks a further treasure trove of benefits and freebies eg free TV, grants and energy subsidies, and so forth - the list goes on. All unfair and unsustainable.

Yes it is very difficult for the younger generation. I have encouraged both of my children to work for the govt to ensure they won't need to worry about their pension.

My parents encouraged me to find a job for life (in banking) - redundant at 35!

I’m encouraging my children to find jobs they enjoy. Good mental health will help good financial health IMO.

Sea_Shell

DT2001 said:

arnoldy said:

Sea_Shell said:

So far our (early) retirement has been made up of a pandemic, war in Europe, inflation and a market slump....it's going swimmingly 😉

Yes here is my experience in semi retirement:

• Market slump September 2018 - Jan 2019
• Pandemic 2020
• Inflation reawakened with a vengeance
• Tax rises including fiscal drag, and limiting of pension LTA
• Green taxes and green washing industry - we are now all paying £500-600/yr green and social levies on energy + having to think about putting aside £50,000-£80,000 for heat pumps, electric cars etc. Utterly unaffordable for most. All those green costs are coming, agree with it or not.
• Financial repression of interest rates of 1.25% whilst inflation is heading north to 11% +. 
• The Government trying to be everybody's friend splashing the dosh and adding to inflation.

what a mess. As ever control what you can control. When (not if) this sort of set of challenges arise in 25 years time when everybody* will be on market invested DC pensions it will be a real shocker of large swathes of the population unable to cope.

* Basically all those in private sector (25 million +)

If you look at Sea_shells excellent thread their pots are fine - the same as two years ago - after drawing £31k.

People adapt. My parents cut their cloth to suit their circumstances having no DB pension provision or large pot.

The divide between haves and have nots may increase as I think inherited wealth will play a bigger part. I intend to help fund my children’s pensions by leaving funds in a SIPP to them 

Thanks for the mention 😉

It's still hard not to think you've "lost" when the big increases have come and gone.  If you'd not "gained" in the first place, would the current situation feel as bad?

I'd rather a steady 3% a year than wild swings +/- 30%, but that's investing.

Nebulous2

By comparison with most people on here - I'm winging it, but certainly not losing any sleep. 

I retired over a year ago at 59 with a DB from LGPS and quickly took a part-time job. We also found ourselves with a lump of cash which we'd never had before and had all the issues of what to do with that. Thought we would need some of it to bridge to state pension. 

The cash was split filled 4 ISAs between us, now under water, and put the same into premium bonds.

The part-time job has gone well, putting some in a SIPP, buying toys; an expensive new bike, and leasing an electric car. 

The rise in utilities has been a shock - gone from £68 a month to £160 a month, and even then I managed to lock-in for two years before the main rises hit. 

The cash to get us to state pension is untouched and I've an additional £15k, mainly in a SIPP, over what I had when I retired. I've just invested £4k of it in an index tracker from Vantage, with the rest in cash. This is the first month since I retired that I've found myself hunting around for cash, and may need to raid a regular saver to get by. All-in-all we're largely untouched by the mayhem that many other people are facing, with the DB pension and a relatively modest lifestyle being a big part of that. 

robatwork

Michael Buerk's teeth made the programme unwatchable. 

daz378

When was the people's pension  introduced...is this a glimmer of hope in the future...that  the government/finance sector will be able to pay them