nest refund, I've left my job.( sorted)

Marcon

stu12345_2 said:

ti get £5000 in a pension a year would mean it would have taken be worth £250,000  on a drawdown of 4% a year


i rest my case

Why? Are you planning to live for another 50 years once you get to state pension age?

I wouldn't rest your case until you get better at numbers!

booneruk

It's not a swindle. You'd likely be much better off putting £40 a month into a low platform fee private pension, getting tax relief and employers contributions on that and allowing it to grow over 2, 3 or 4 decades, than if you put the same £40 into an ISA or other non-pension vehicle.

I put nearly all the money I would pay 40% tax on into my salary sacrifice pension, one that auto enrolment got me into (thank the government for bringing that in). I get to choose how to withdraw that eventually - I have the option to withdraw tax efficiently, and it will supplement my state pension, should they still exist when I retire. If not, then I'd be even more happy for having the private pension.

After 9 years of saving, the pot is currently 40% above the raw contributions, half of which my employer put in. Most of those gains have come over the last few years as the pot is starting to compound nicely. 

I'm not sure how any of that is a swindle.

JoeCrystal

stu12345_2 said:

I can imagine their voices , I put £40 a month away for 20 yrs, why isn't it worth £250,000.
, what a swindle 

Hmm, I see why you would think that now, thanks for explaining your thoughts. Unfortunately, the government cannot enforce people to pay attentions to their pension schemes. Indeed, people should and have saved up for their own private pension provisions. The State Pension and Pension Credits are never designed to sustain a comfortable living. You can lead a horse to water but you cannot force it to drink.

Considering how generous the new state pension is nowadays, I would not be surprised if the benefits will be rolled back, indeed, the new state pension is designed to be higher than Pension Credits.

stu12345_2

a pensioner couple both on full state pension, housing benefit, council tax support can live comfortably without the need for a private pension taking away any benefits 

gov will not hurt pensioners, it's then they rely on in voting, the young always gets the bad deal, student loans, high house prices, high private rent, few council homes, no defined benefit pensions.

if the young want their vote, they have to offer as good as what folk are getting now when retired or show that's what they will get to without them having to pay an OAP pension contribution via wages for 40 odd years and a private pension contribution for 40 odd years.

I now understand why many are relying on inheritance to fund them, the lucky ones that had parents that got homes on the cheap yrs ago 
who when dead, their children try to sell them at silly prices to the next generation of young folk

at the TV add says" you have a lovely home,wonder what it's worth when you , ahem. "" heavens forbid "

booneruk

stu12345_2 said:

a pensioner couple both on full state pension, housing benefit, council tax support can live comfortably without the need for a private pension taking away any benefits 

Like I said earlier, if the whole nation did that there would be major problems. Benefits should be a safety net, not a crutch.

stu12345_2

Logan's Run route perhaps?

booneruk, so is state pension a benefit then, if it was unable to be funded by national insurance contributions 

like I said,build social houses, get the money back many times over via the rents over 50,60 plus years, then housing benefit can be easy paid out, my previous council home was built in 1946 and still going strong, numerous families have enjoyed it over and over, that nearly a century of rent been paid out.

and it will still be here in years to come 

like I said im 56 on min wage and if I put the 4%in and employer puts 4%in , I may have enough for a half dozen trips to benidorm before I die when retired.
it will never cover my rent or council tax for say 18yrs of retirement, not even close.

in the end the young should not be forced to pay for previous and current governments failures

booneruk

stu12345_2 said:

booneruk, so is state pension a benefit then, if it was unable to be funded by national insurance contributions 

Nope. But pension credit, council tax support and housing benefit certainly are though.

Oh, and state pensions aren't funded by national insurance contributions. You build up entitlement to state pension via national insurance payments or credits. There's no defined pot of money.

stu12345_2

I will ask the gov for a refund of 40yrs NI payments and a copy of Logan's run.

bye now must dash