Is it pointless getting a pension?

[Anna B]

Not true. Pensions are counted separate from welfare; http://www.ukpublicspending.co.uk/

 

As with all things statistical, they can be manipulated any which way depending on the point you are trying to make.

 

They can (and are) counted alongside benefits in welfare spending.

[gomgeg]

Each year I'm told by the government there's no tax on benefits, then I have my state pension deducted from my personal allowance, yes I still pay tax on my pension. Incidentally if you have a wife, husband or partner that doesn't pay tax it's worth claiming the transferable tax allowance brought in in April, it's worth about £17.50 a month.

[the_bloke]

I've already come a cropper with a private pension.

 

I miss out on the new £150 state pension by a few weeks, to the tune of nearly £40 a week. (I'll get £113 per week state pension) And I'm not entitled to claim anything to make up the difference because of a small private pension.

 

That comes to nearly £40,000 out of pocket in state pension over 20 years.

 

Must be a lot of other people in the same situation...

 

As you were so keen to berate me on another thread, you 'held down a professional job as a teacher and lecturer for 20+ years' - so why have you got such a poor pension? You seem jealous of pensioners who will be getting that mighty £150 pension, when your private pension probably dwarfs most people's retirement income.

[Anna B]

As you were so keen to berate me on another thread, you 'held down a professional job as a teacher and lecturer for 20+ years' - so why have you got such a poor pension? You seem jealous of pensioners who will be getting that mighty £150 pension, when your private pension probably dwarfs most people's retirement income.

 

What's with the jealous? Not at all.

 

What annoys me is Cameron's lie that everyone on the lower rate will have it made up to the full amount with other additions, etc; that's simply not true. And yet I have to wait an extra 3 years before I can draw it.

And in the context of the OP's question, a good proportion of my private pension which I have paid into, will have been subsumed, making up the loss.

[John Hope]

Yes, you have to buy property and rent them out to give yourself a pension.

[Cyclone]

Of course. I was pointing out how ridiculous it is for those on low incomes who rent to pay into a pension scheme... although the rules have changed now I think and everyone has to have a pension and empoyers have to contribute. Let them but don't yourself...

 

---------- Post added 10-08-2015 at 16:06 ----------

 

 

I think most on that sort of income would be home owners as well so the outcome is different with no rent to pay and the mortgage paid off...

 

Ah right, I thought you were giving more general advice.

[Daven]

MikeFrank

""My fathers in a nursing home. He pays £500.00 per month shortfall in his fees for the home... which are over a £1000,00 per month. Another chap pays the full fees for his wife because he was frugal, bought a house and has a private pension. He was a Brickie, not a high earner. Then others don't pay a penny because they have no assets or income. Its all so unfair..""

 

This is exactly my point - one which some on here struggle to understand.

My Mum has been in a similar situation. She was widowed relatively young. Mum and Dad weren't high earners (Mum was a school dinner lady) - they were frugal, bought a house and Dad paid into a private pension. 'Make do and mend' was one of my Mums sayings. Consequently, and after Dad died at the young age of 59, Mum develops Alzheimers Disease and has to go into care, all of their savings have now been taken to fund Mums care.

Others in Mums care home have all their fees paid by the Council as they have no savings or assets - either because they didn't / couldn't save or because they have p####d all their money up against a wall - I don't know the reason but the whole system stinks in my opinion.

If Mum was aware of what had happened to all her and Dads hard earned and saved money she would be so angry. She'd call them 'rob dogs'.

It's for the above reasons that I believe that paying into a pension and saving your money all your life is a waste of time. Enjoy your hard earned money whilst you are fit and well enough to do so and let the 'State' pick up the bill when you are unable to look after yourself.

 

MikeFrank

""If you're a honest hard working person all your life and do as your told ie save etc... sooner or later they will stitch you up like a kipper....""

 

Quite so - with bells on !

My Mum and Dad were painfully honest and very hard working- hasn't got them anywhere though has it ?

Edited August 11, 2015 by Daven

[sgtkate]

That is correct. If you can only afford a pension plan that would give you an income of say £100.00 per week there will be deductions from the benefits you are entitled to. For example I knew someone a while ago who received a pension of approximately £100.00 per week but deductions meant the pension was only worth £50.00 per week because they lived in rented accommodation so had deductions from housing benefit and other deductions.. I can't remember all the ins and outs.... Therefore, wouldn't it be better to save the money in an ISA and then spend it on things you will need in retirement so you will receive 100% of your money.. For example buy a new car that will last you for a long time... perhaps for the rest of your life... or make some provision for holidays.. timeshare or caravan..

 

I'm not a financial adviser but these are the issues that cropped up when I worked with elderly people in rented accommodation..

 

I reckon if you have a pension fund and are due to retire in a few years you might be better cashing it in and spending much of the proceeds before retirement...

 

It may seem a bit cheeky but hey that's what those further up the ladder do... stash money overseas, avoid tax and use the system... Poor people should do the same..

 

I reckon there's a window of opportunity for a financial adviser to specialise in this field...

 

---------- Post added 10-08-2015 at 15:23 ----------

 

 

If you're a honest hard working person all your life and do as your told ie save etc... sooner or later they will stitch you up like a kipper....

 

My fathers in a nursing home. He pays £500.00 per month shortfall in his fees for the home... which are over a £1000,00 per month. Another chap pays the full fees for his wife because he was frugal, bought a house and has a private pension. He was a Brickie, not a high earner. Then others don't pay a penny because they have no assets or income. Its all so unfair...

 

Absolutely agree. Once the people in power start to see pathetic tax returns because all of the 'little' people are playing the game too they will be forced to change the rules. And until they do why should the majority of people pay considerably more tax on their income in percentage terms than someone who earns millions?

[Anna B]

Absolutely agree. Once the people in power start to see pathetic tax returns because all of the 'little' people are playing the game too they will be forced to change the rules. And until they do why should the majority of people pay considerably more tax on their income in percentage terms than someone who earns millions?

 

I agree up to a point, but there is no guarantee that the government will continue to pay for anyone's care. At the rate we're going people will be left to die in their own homes.

 

There's already an undercurrent of this, with moves to keep people in their own homes, 'because it's better for them,' but frankly, the home care they receive is not sufficient and will probably get worse. I wouldn't mind betting (are there any figures?) that those kept in their own homes are generally in rented accommodation, and have nothing to sell to pay for a residential home.

[MikeFrank]

I agree up to a point, but there is no guarantee that the government will continue to pay for anyone's care. At the rate we're going people will be left to die in their own homes.

 

There's already an undercurrent of this, with moves to keep people in their own homes, 'because it's better for them,' but frankly, the home care they receive is not sufficient and will probably get worse. I wouldn't mind betting (are there any figures?) that those kept in their own homes are generally in rented accommodation, and have nothing to sell to pay for a residential home.

 

The problem we have in this country that the poor are a minority, so there will be no revolution or change in government policy. Corbyn has reawakened a lot of old socialist thinking but it will end in tears with the death of the Labour Party. There are not enough people suffering austerity for there to be a change in political thinking. There's a "I'm alright Jack" streak in all of us and if the tax avoiding media barons keep pumping out negative publicity as well this new(ish) Labour Party will implode...

 

Another reason Corbyn will fail is because of his pro EU pro Open Borders policies. I'm not saying they are wrong but there is a large part of the electorate who may agree with some of his thinking but this aspect would deter them from voting for him....

 

If there is to be political change there needs to be a party that connects with a large percentage of the electorate like the Tories do... I can't see this happening any day soon...

 

Oops I went of on a political tangent there