Mid-life musings

MeteredOut

michaels said:

MeteredOut said:

BlackKnightMonty said:

Bumblingbee said:

I think it's unlikely that the state pension would be abolished, but I guess who knows what will happen! I certainly couldn't have foreseen a lot of the last 5-10 years 🤣

With regards to paying off our mortgage, there perhaps is more to be gained via investments but it doesn't interest me. Certainty and security is something I value, there is plenty of time after that to try and make gains if we wish and it will give us financial freedom. 

Likewise when we hit the pension number I'd expect us still to be working and contributing at least whatever is required for our employers contributions, so I'd expect this to bridge the gap between the value today vs the value in the future - but I can worry about that when we hit the number 

Very unlikely they will get rid of the state pension.

It is likely that the age you receive it will increase. For me it is currently 68; but by 2044 I could see that increased to +70.

it is likely it will be means tested in future; the irony there being only those who haven’t contributed towards it would receive it.

This all sucks, I know, but the UK is actually quite poor and has been living beyond it’s means for far too long.

I agree the state pension age is likely to increase. 

I strongly disagree it is likely to be means tested for anyone currently of working age and making NI contributions.

It is already means tested, if you have other earnings of more than 12.5k then 20% is deducted and if you have other earnings of more than 50k then 40% is deducted.

That's no more means testing that paying tax on employment income is means testing, or tax on savings above the 0% thresholds is means testing. 

And its clear what BKM actually meant when they said "in future" - entitlement to, not taxation of.

Cobbler_tone

michaels said:

MeteredOut said:

BlackKnightMonty said:

Bumblingbee said:

I think it's unlikely that the state pension would be abolished, but I guess who knows what will happen! I certainly couldn't have foreseen a lot of the last 5-10 years 🤣

With regards to paying off our mortgage, there perhaps is more to be gained via investments but it doesn't interest me. Certainty and security is something I value, there is plenty of time after that to try and make gains if we wish and it will give us financial freedom. 

Likewise when we hit the pension number I'd expect us still to be working and contributing at least whatever is required for our employers contributions, so I'd expect this to bridge the gap between the value today vs the value in the future - but I can worry about that when we hit the number 

Very unlikely they will get rid of the state pension.

It is likely that the age you receive it will increase. For me it is currently 68; but by 2044 I could see that increased to +70.

it is likely it will be means tested in future; the irony there being only those who haven’t contributed towards it would receive it.

This all sucks, I know, but the UK is actually quite poor and has been living beyond it’s means for far too long.

I agree the state pension age is likely to increase. 

I strongly disagree it is likely to be means tested for anyone currently of working age and making NI contributions.

It is already means tested, if you have other earnings of more than 12.5k then 20% is deducted and if you have other earnings of more than 50k then 40% is deducted.

Using that logic everyone will soon be 'means tested' on the state pension. 

Bumblingbee

Updating current progress
My pension #1 £366,186
My pension #2 £8,786
Hubs pension £193,790

Total £568,762. Quite pleased with that!

Bumblingbee

Back to provide an update of where we are. During the year my husband changed jobs so there's now a NEST pension in the mix. We've had some ongoing confusion about contributions with it but thanks to this forum we're now clear on that, so we have a couple of 2026 actions: 1) try again to resolve NEST contributions, and 2) set up a SIPP for my husband and increase contributions.

In the last year we've also nearly cleared the mortgage so have just under £7.5k on it.

Pension balances are now as follows:

Husband L&G pension £219,772.06
Husband NEST £3,064.11
My L&G pension £403,362.00
My Aegon pension £48,925.00
Cash in bank ready to be paid into pension £16,000 which will become £20,000

I make that a total combined of £675,123.12 which will increase to £695,123.12 once the cash is paid in.