Live fast, die in poverty

farhad1965

Came across this just today.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/25/cmpen125.xml

Quite sobering I think. There are far too many people getting sucked into the live for today mentality and dont care about their (g)olden years.

dunstonh

yes. They will spend their working life used to 20k+ per annum only to find out they are on £4500 in retirement. Its going to be a big culture shock for them when it happens.

p00pieb0tt0m

I've said for a couple of years now that if I find my pension is not sufficent to live on (I'm 29 now and have paid in for 10 years, so couldn't of started much earlier) then I will get into the bank robbing business.

If I don't get caught I shall live off the proceeds.

If I do get caught I shall live on His Majesty's pleasure.

EdInvestor

dunstonh wrote: »

yes. They will spend their working life used to 20k+ per annum only to find out they are on £4500 in retirement. Its going to be a big culture shock for them when it happens.

In fact as long as these people have been working for most of their lives, they are likely to end up with more than double that via their 2 state pensions.

Is 10k a year poverty? 20k p.a for a couple?

It's certainly well ahead of the pension credit level.

dunstonh

The second state pension has been dropping in value over the years. Someone starting out now cannot get more than double the state pension. Its about £3390 (taxbriefs 11/07) if you get maximum qualification and assume the Govt doesnt reduce it or remove it in the future.

Self employed dont get it at all.

farhad1965

My IFA advised I should not get back into the SERP. I am currently contracted out.

meester

farhad1965 wrote: »

Came across this just today.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/25/cmpen125.xml

Quite sobering I think. There are far too many people getting sucked into the live for today mentality and dont care about their (g)olden years.

Sorry, the economy's dependent on it. How else will people pay off their 125% mortgage on their £310k 2-bed council flats? (http://www.rightmove.co.uk/viewdetails-19867751.rsp?pa_n=8&tr_t=buy)

[Deleted User]

28 now (well, in 2 weeks i will be).. been paying into a scheme since i was 22 and I get very surprised when I hear my peers tell me they're not paying into a scheme.

Where I work, my employer matches my contribution (up to 5%).. The way I see it is that anyone not paying into our scheme is giving themselves a paycut

Retired_I.F.A.

p00pieb0tt0m wrote: »

I've said for a couple of years now that if I find my pension is not sufficent to live on (I'm 29 now and have paid in for 10 years, so couldn't of started much earlier) then I will get into the bank robbing business.

If I don't get caught I shall live off the proceeds.

If I do get caught I shall live on His Majesty's pleasure.

I realise long before i was 29 I could not fund a pension enough to give me what I wanted and learned all about them blue tranny's belonging to securicor and sawn off shotguns instead

lilac_lady

A worrying aspect for future pensioners will be that they'll still have debt and mortgages to pay after retirement age. It'll be "work till you drop" for them unless they can win the lottery.

Pobby

The pressure now on youngsters is amazing.Leaving university with debt.High housing costs and no,you can`t have a mortgage because we are not silly t%ats anymore and you`ll need a decent deposit.Add that to a pension contribution and it doesn`t leave much to have fun with.

I am concerned regarding my retirement in a few years.Both of us have a full state pension plus some serps each.There are about 7 other pension pots,2 old company ones,three paid up pensions and 2 current pensions.Plus we have almost a 6 figure sum in low risk investments plus about half of that in cash ISAs and savings.

When you add it up the whole lot looks like s goodly sum.I am self employed and right now it ain`t looking like I will make a good income for the next few years also my wife earns about 15k pre tax a year but there is some scope for smaller savings.

To my calculations the whole lot added together(provided nothing dreadful happens would provide us with about 24k a year after tax.Without a mortgage and being fairly MSE that looks pretty good to me right now.However I havn`t fully calculated for inflation so will have to wait and see.The kids can have the house if that doesn`t get sold to fund care or if we don`t get to retirement age they can have a fair old knees up on the proceeds!