Gov launching pension age review

BlackKnightMonty

Andy_L said:

BlackKnightMonty said:

Andy_L said:

I recall reading a idea (I think it was in one of the House of Lords briefing notes) that while people are accruing SP it should be earnings linked , as people (who bother to) plan on having X% of their salary in retirement to "keep them in a manner to which they have become accustomed" & then when it is in payment it should track inflation in order to maintain that lifestyle

Your NI contributions do not pay towards your own pension pot; they pay for the pension of current retirees.

Your NI contributions only qualify you, through a social promise, a similar deal for when you retire.

There is no state pension pot. The promise is just that.

Sorry, didn't make it clear. The idea was that SP increases with wages (as opposed to inflation or 2.5%) but when you retire it changes to inflation indexation instead.
Not that the amount of state pension you get is based on how much you earn

Getting a bigger state pension based on bigger working life contributions seems fair to me. But I doubt a majority are in favour of that.

I would very much like to see some sort of individual pot built up. But then my contributions would be going into that rather than paying for current retirees who didn’t get a pot. (so I will be paying twice! No make that three times over if I make my own separate private pension provisions, and wait a minute; four times with my employer scheme).

QrizB

BlackKnightMonty said:

I would very much like to see some sort of individual pot built up.

Rather like auto enrollment?

But paid to HMG rather than to your pension co? You think HMG would achieve better returns / lower costs than private business does?

cloud_dog

BlackKnightMonty said:

MeteredOut said:

BlackKnightMonty said:

BrilliantButScary said:

It's a shame this thread has devolved into content best left to the Daily Telegraph.

There are two entrenched views.

Those who are collecting or soon to collect a state pension who want it to be plumped up as much as possible.

Those who are some way off collecting it who see the utter un sustainability of it, and who would like some changes made to keep it as a possible future option for them even though the likelyhood of them receiving it AT ALL/AT ANY AGE is rapidly diminishing.

I don’t know how you reconcile those two positions.

You really can't accept that there are people in the middle? You think its either boomer - handed millions, or Millenial/GenZ - no chance nomatter what they do?

As referred to above, its a shame this is another thread that has turned into a whinge rather than a grown-up discussion about the actual topic.

I've stated before - the pension will be around for as long as people who have paid NI are able to collect it, but it'd be naive to think the attainment age won't go up. Linking it to life expectancy seems a good starting point.

No, I think the State Pension faces extinction.

Well, we all do one day, so you'll be correct eventually.

BlackKnightMonty

QrizB said:

BlackKnightMonty said:

I would very much like to see some sort of individual pot built up.

Rather like auto enrollment?

But paid to HMG rather than to your pension co? You think HMG would achieve better returns / lower costs than private business does?

QrizB said:

BlackKnightMonty said:

I would very much like to see some sort of individual pot built up.

Rather like auto enrollment?

But paid to HMG rather than to your pension co? You think HMG would achieve better returns / lower costs than private business does?

I think NEST could be the way to go. So some of you NI goes into NEST as a further contribution.

NEST needs reforming to include more funds, maybe even an annuity function.