buck Posted July 13, 2012 Share Posted July 13, 2012 Retirement is a good thing, it gets people off the unemployment list.Retirement is a very good thing. I was forced into retirement at 62 when I got laid off. I was immediately paid a pension by the US and Canada, while being able to earn as a technical consultant. I started getting a pension from the UK at 65, and also received a good Company pension. I eventually sold my large family house and bought a small one level place which is really nice. I'll be 81 in August, and enjoying every minute of it. If I had to I could live on the equity from the house. I'm determined to make sure my wife is comfortable after I'm gone, and also to leave nothing for the hangers on except something for my Grandkid's education. Link to comment Share on other sites More sharing options...
Joanl Posted July 13, 2012 Share Posted July 13, 2012 Where do the banks come into the government pension? As I understand it the money paid by today's workers goes to paying today's pensioners..not from their own "savings" I started work at 15 and as I understood it then, the NI contributions I started paying shortly after, along with income tax, was to enable me to have a pension when I retired......... When I got to the stage where I divorced, I remember they were suggesting, even encouraging women to be put on some sort of shared tax rate with their husbands.(Married Womens Tax). Because I was getting divorced, I didn't bother and carried on paying a full stamp. This has meant that I get a full state pension whist my friend who is the same age as me and did go onto the MWT is still working cos she only gets a small pension. Best decision I ever made.....one "con" I didn't fall for. Another thing, if you sign on the dole, don't you have to have so many contributions of your own going back a number of years to get anything? So THAT is surely as you call it from your own "savings" but then being passed to the current taxpayers to maintain. Link to comment Share on other sites More sharing options...
Anna B Posted July 13, 2012 Share Posted July 13, 2012 Where do the banks come into the government pension? As I understand it the money paid by today's workers goes to paying today's pensioners..not from their own "savings" In that case, my money has already gone to pay for the previous generation's pensions. Nevertheless, I have paid into the system for more than 45 years. As for my works pension I have also contributed more than I could sometimes afford to ensure a pension for when I am too old to work. However the Bank of England's policy of Quantative Easing has 'destroyed the pensions industry and impoverished more than a million pensioners.' Dr. Ros Altmann, Director General of Saga, said "There is overwhelming evidence that QE has destroyed the incomes for millions of pensioners and savers." QE has reduced the yield on Government bonds (gilts)which are linked to annuity rates. In 2008 savings of £100,000 would have bought an annual income of nearly £8,000. But just 4 years later in 2012 the same £100,000 savings would only buy an income of £5,600 a drop of nearly 27% in 4 years. Link to comment Share on other sites More sharing options...
gnvqsos Posted July 13, 2012 Share Posted July 13, 2012 People will not retire in future but will shift to a part-time role for the state who will provide work for the elderly.This will be jobs like leading sing songs,providing a source of oral evidence for historians,and forming an audience for chat shows.The ones with investments will continue to use cheap flights etc, and will have a right old time(I hope) Link to comment Share on other sites More sharing options...
Anna B Posted July 13, 2012 Share Posted July 13, 2012 Where do the banks come into the government pension? As I understand it the money paid by today's workers goes to paying today's pensioners..not from their own "savings" I assume that the National Insurance contributions that are taken for State Pensions are also invested, and are also not doing very well. That's why the government is panicing, but as with all things they are blaming the public. Link to comment Share on other sites More sharing options...
Expat owl Posted July 13, 2012 Share Posted July 13, 2012 Isn't that the case now? The only thing that's regulated is the age at which you can draw your state pension.. I don't think that's right. I think there is a regulation that states you cannot take any form of pension (personal or otherwise) until the age of 55 years. This was increased from 50 in January 2010 (I think). So those who have managed to save large sums into a personal plan (granted there won't be many !!) are not able to simply take it when they want to. Link to comment Share on other sites More sharing options...
Ms Macbeth Posted July 13, 2012 Share Posted July 13, 2012 I started work at 15 and as I understood it then, the NI contributions I started paying shortly after, along with income tax, was to enable me to have a pension when I retired......... When I got to the stage where I divorced, I remember they were suggesting, even encouraging women to be put on some sort of shared tax rate with their husbands.(Married Womens Tax). Because I was getting divorced, I didn't bother and carried on paying a full stamp. This has meant that I get a full state pension whist my friend who is the same age as me and did go onto the MWT is still working cos she only gets a small pension. Best decision I ever made.....one "con" I didn't fall for. Another thing, if you sign on the dole, don't you have to have so many contributions of your own going back a number of years to get anything? So THAT is surely as you call it from your own "savings" but then being passed to the current taxpayers to maintain. Ah, you'd think if you'd paid in you'd be entitled to 'dole'. I've recently found out that if you are made redundant, and get a private pension you are unlikely to get contribution based JSA. Its recently happened to a friend of mine who is a few years off drawing state retirement pension, but has a small occupational pension. After paying his NICs for 40+ years, he now gets nothing. And, he is genuinely looking for work. Income based JSA is means tested, and paid to qualifying people who are signing on as looking for work, regardless of any contributions. Link to comment Share on other sites More sharing options...
Expat owl Posted July 13, 2012 Share Posted July 13, 2012 Contribution-based Jobseeker's Allowance (JSA©) entitlement is based on Class 1 National Insurance contributions in the two complete tax years preceding the calendar year of claim. This allowance is paid regardless of assets. Link to comment Share on other sites More sharing options...
truman Posted July 13, 2012 Share Posted July 13, 2012 I assume that the National Insurance contributions that are taken for State Pensions are also invested, and are also not doing very well. That's why the government is panicing, but as with all things they are blaming the public. I don't think they're invested anywhere..why would you borrow money at x% when your investments are making <x% ? If you have to borrow (as the UK does) it's cheaper to not invest and use the money.... Have a read here http://www.early-retirement-investor.com/state-pension-crisis.html Link to comment Share on other sites More sharing options...
Mikes10 Posted July 13, 2012 Share Posted July 13, 2012 Have a look at the uk government statistics (link below) on average a male born now can expect to live until they are 78, female 82 of course the data does not account for thermonuclear war, global warming, asteroid strike or any other disaster (natural or self-inflicted). http://www.statistics.gov.uk/hub/population/deaths/life-expectancies/ Link to comment Share on other sites More sharing options...
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