| The state pension will rise by 4.7% next year. 16:47 - Sep 16 with 14809 views | noggin |
Brace yourselves for the “We can’t afford it” overreaction. |  |
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| The state pension will rise by 4.7% next year. on 11:03 - Sep 19 with 1071 views | OldFart71 |
| The state pension will rise by 4.7% next year. on 08:38 - Sep 18 by DJR |
The problem it seems to me though is that many don't have the means to save adequately for their retirement, which means that I think the state would have to act as a backstop at the very least for those going into retirement with precious in the form of income.
As it is, the cost of state provision for pensioners is only around 5% and the abolition of the triple lock would free up much more money over time.
Here's a recent paper on the issue.
https://academic.oup.com/oxrep/article/41/1/153/8157938 [Post edited 18 Sep 8:47]
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It is exactly that "Means" a young person earning say £25,000 would after tax and N.I. take around £21,500, so would take home £1791 per month. Take from that a rent or mortgage between £1000 and £1200, council tax getting on for £200. energy at £100 per month, food at £350 etc,etc, nothing left.
Obviously all item costs are guesses and will be more or less depending on individual circumstances.
That then means if a pension provision for an individual/couple is to be made then it would perhaps be taken out in later years which in turn means the amount required to provide a good retirement would be higher.
On a recent search I discovered that in order to now have a good retirement a couple needs £38,000 per annum. An adequate retirement where luxuries are few and far between like changing your car, going out for meals, holidays etc would be severely curtailed.
I don't dispute the high figure as the older I get the less capable I am to do jobs I would carry out around the house. Where to get holiday Insurance due to underlying health conditions of both myself and wife where I used to pay a few hundred now run into between £1000 and have been over £2,000. Repairs to roofs, new fencing and dental work for my wife and myself have totalled around £15,000 in the last four years. The dental work was because no NHS facilities were available. |  | | |
| The state pension will rise by 4.7% next year. on 13:07 - Sep 19 with 780 views | DJR |
| The state pension will rise by 4.7% next year. on 11:03 - Sep 19 by OldFart71 |
It is exactly that "Means" a young person earning say £25,000 would after tax and N.I. take around £21,500, so would take home £1791 per month. Take from that a rent or mortgage between £1000 and £1200, council tax getting on for £200. energy at £100 per month, food at £350 etc,etc, nothing left.
Obviously all item costs are guesses and will be more or less depending on individual circumstances.
That then means if a pension provision for an individual/couple is to be made then it would perhaps be taken out in later years which in turn means the amount required to provide a good retirement would be higher.
On a recent search I discovered that in order to now have a good retirement a couple needs £38,000 per annum. An adequate retirement where luxuries are few and far between like changing your car, going out for meals, holidays etc would be severely curtailed.
I don't dispute the high figure as the older I get the less capable I am to do jobs I would carry out around the house. Where to get holiday Insurance due to underlying health conditions of both myself and wife where I used to pay a few hundred now run into between £1000 and have been over £2,000. Repairs to roofs, new fencing and dental work for my wife and myself have totalled around £15,000 in the last four years. The dental work was because no NHS facilities were available. |
My parents-in-law used a £50,000 equity release loan about 20 years ago to help with the sort of things you mention. That money has long since gone as has much in the way of equity in their £250,000 home which my mother-in-law is about to sell.
In recent years they had to rely on top ups from us and their other children, including for example £7,000 for a stair lift. [Post edited 19 Sep 13:08]
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| The state pension will rise by 4.7% next year. on 22:34 - Sep 19 with 285 views | mellowblue |
| The state pension will rise by 4.7% next year. on 09:32 - Sep 18 by SuperKieranMcKenna |
Not sure a single person has said pensioners shouldn’t get a rise. Only that we need long term reform of the system. There’s around 157 billionaires in the UK (less per capita than Norway). Even if you took their entire net worth it wouldn’t pay our pensions for a single year (let alone an annual wealth tax). YES they should pay more for equality, but suggesting taxing the wealth of a handful of billionaires will make a huge difference to the UKs fiscal situation is populism really. Baring in mind a lot of assets will be in different tax jurisdictions as well.
Norway (ethics aside) did a great job building their sovereign wealth fund, which continues to grow and Norwegians are set for generations now, if only we’d had some politicians with a little foresight… |
I wouldn't blame the politicians too much. In the UK the North Sea oil income has always been used to prop up the country's economy from day 1 . There was great relief when it was first discovered as the government in the 70's was stony broke. Most of the oil revenues went to private companies whereas a lot of the oil/gas extraction by Norway was by state owned companies . On top of that Norwegian taxation on oil/ gas has always been higher than the UK's. So despite extracting more oil and gas, the income received by the UK was a lot less than what was received by Norway. Norway has a population about 7% of the UK's and that higher UK population's social , health, education etc needs has soaked up the income over the years, whereas Norway with it's much smaller population have had plenty of money left over for the wealth fund. Very enviable position. | | | |
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