I1L2T3 Posted November 20, 2013 Share Posted November 20, 2013 I watched the programme tonight and I am sure it said that a woman they had on would have to put in an extra £600+ a month to get a decent pension. Basically if you leave it until your 30s or later and you haven't got a very significant amount of surplus cash to plough into it year after year then you're knackered. Link to comment Share on other sites More sharing options...
Ms Macbeth Posted November 21, 2013 Share Posted November 21, 2013 I'm not sure, but I believe if your pension pot is less than £18,000 you can take it as a lump sum. I hope someone will put me right if I've got that wrong. Its called ‘Trivial commutation’ and you're basically right, although it can depend on the type of pension. http://www.pensionsadvisoryservice.org.uk/media/943864/spot008trivialcommdetailedv1.5.pdf I think we're often told that we need much more than we do in reality. Retirement doesn't have to be expensive, however people's expectations often determine whether they feel they have enough. We live on a very modest pension, but there is nothing we 'need' that we can't afford. However, need is quite different to want! The way state pensions have changed over the years has made it very unfair for anyone retiring with small private/occupational pensions. People who have been on moderate incomes and thought they were doing their best to ensure they had a bit more in retirement have, IMO, been shafted. If they hadn't put away a penny, they'd now be getting Pension Credit and its associated benefits and wouldn't be much worse off. A couple on pension credit will get around £220 a week (disposable income) on top of council tax and housing benefits. Considering we have free bus passes and prescriptions, its not exactly starvation rates. However, I think anyone in a long term career, particularly those in final salary schemes (mainly the public sector) should contribute. They'll retire on substantial pensions so in their case it is usually worth while. Link to comment Share on other sites More sharing options...
francypants Posted November 21, 2013 Share Posted November 21, 2013 However, I think anyone in a long term career, particularly those in final salary schemes (mainly the public sector) should contribute. They'll retire on substantial pensions so in their case it is usually worth while. Until further down the line after you've been faithfully paying in, they alter the goalposts and you won't get what you were promised after all. Link to comment Share on other sites More sharing options...
Ms Macbeth Posted November 21, 2013 Share Posted November 21, 2013 Until further down the line after you've been faithfully paying in, they alter the goalposts and you won't get what you were promised after all. Thats more or less what happened with the state pension, and private pensions. Public sector pensions are generally still the best for long term employees. Link to comment Share on other sites More sharing options...
francypants Posted November 21, 2013 Share Posted November 21, 2013 Thats more or less what happened with the state pension, and private pensions. Public sector pensions are generally still the best for long term employees. What.... like the teachers and firemen ? to name just two. Link to comment Share on other sites More sharing options...
tzijlstra Posted November 21, 2013 Share Posted November 21, 2013 The biggest issue with pensions is that it shouldn't be seen separately from the whole financial picture. This is why I have massive issue with the government increasingly 'taxing' the possessions of elderly that need care. It is downright wrong, as is inheritance tax - often inheritances are the thing that enables people to finance themselves through retirement. The best thing people can do is buy their house, invest money in sensible funds and don't rely on the appalling pension funds that seem to be rife in the UK. Link to comment Share on other sites More sharing options...
truman Posted November 21, 2013 Share Posted November 21, 2013 What.... like the teachers and firemen ? to name just two. There aren't many people in the private sector able to retire at 60...with a pension based on salary (although currently it's 55 for firemen) Link to comment Share on other sites More sharing options...
francypants Posted November 21, 2013 Share Posted November 21, 2013 There aren't many people in the private sector able to retire at 60...with a pension based on salary (although currently it's 55 for firemen) The point I was making is that choose where you work, what you've been promised with regards to your pension it isn't going to happen. A previous poster said it's still worth contributing into the public sector pension because it's based on final salary ............. I'm saying not for much longer as the goalposts are being moved. I don't think any pension is worthwhile these days. Link to comment Share on other sites More sharing options...
truman Posted November 21, 2013 Share Posted November 21, 2013 The point I was making is that choose where you work, what you've been promised with regards to your pension it isn't going to happen. A previous poster said it's still worth contributing into the public sector pension because it's based on final salary ............. I'm saying not for much longer as the goalposts are being moved. I don't think any pension is worthwhile these days. I think a final salary one is.... Link to comment Share on other sites More sharing options...
francypants Posted November 21, 2013 Share Posted November 21, 2013 I think a final salary one is.... Yes but the government is trying to get rid of them. Link to comment Share on other sites More sharing options...
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