Pension contributions up from 6% to 8.5%!!

dunstonh

What incentive is it when people who don't pay towards a pension get benefits instead when they retire.

A single person who does no saving/investing for retirement gets little over £6000 a year pension income (inc pension credit). A married couple get litlte over half as much again.

Think about what you earn now and think about how you would manage on £6000 and that should be incentive enough.

It's a struggle earnng enough to live on plus paying into a pension you might receive if your one of the lucky ones.

4 out of 5 people make retirement. So the odds of getting there are hardly "lucky". If you die before retirement, your spouse/beneficiary gets the full value of your pension (assuming money purchase).

In the case of the OP, they are going to get a gold plated top of the range pension that most of us here would jump at if we had the chance and the OP is only going to be paying a fraction of what it is worth.

Also, to be a little judgemental, the reason people cannot afford things is a lot to do with "needing" all the latest gadgets and trying to be something they are not. The consumer society is all about spend spend spend.

I'mcomingbackasaman

dunstonh wrote: »

Also, to be a little judgemental, the reason people cannot afford things is a lot to do with "needing" all the latest gadgets and trying to be something they are not. The consumer society is all about spend spend spend.

If the latest gadget means a car (1996 Punto) then guilty. I have changed my tv from black/white to 28" colour as well ... ah the luxury:rolleyes: My last latest gadget was 2 years ago - broadband for my computer.:rotfl:

I'm just worried that my pension won't be worth a carrot with the way the goalposts keep changing about it but as you say better than state pension alone.

CAE

If your new contribution rate is going to be 5.9% gross from 1st April 2008, this is slightly less than the contribution rate of 6% gross you would have been paying previously.

Your eventual benefits will be greater, as your pension will be based on 60ths not 80ths, even allowing for the fact that there is no automatic entitlement to a lump sum after 1st April 2008.

Death in Service lump sum benefits are also greater (in the unfortunate event ), with survivors benefits being extended to provide benefits to nominated cohabiting partners.

Pension benefits are also increased each year in line with Retail Prices Index.