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Yeah, it'll happen to all of us one day!

I've just read an interesting, and sobering, article that puts forward the suggestion we'll need £17,000 per annum (including state pension) to live comfortably.

Do you agree? Are you worried?

Roy

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I am worried.

I'm only 37 so have time on my side. I have been paying into a pension (as has my employer) for 20 years now.

Over the last few years I have been increasing my contribution by 0.5% a year so am now at 4% and 2% employer (soon to be 3% employer).

I also own half a house, and I plan to have lots of silver to sell when I need to.

I'm still worried though.

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Thanks for being honest Danny. I think it's worrying too.

In the past, you worked hard and the company/government protected you. Both of my grandfathers enjoyed their retirement and lived in their own homes.

Today is different and we need to be savvy. Being on this forum is a good start!

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Thanks for being honest Danny. I think it's worrying too.

In the past, you worked hard and the company/government protected you. Both of my grandfathers enjoyed their retirement and lived in their own homes.

Today is different and we need to be savvy. Being on this forum is a good start!

It's a pleasure, a very interesting topic.

Times have changed over the last 1-2 generations. I dread to think what's happening to others when I come to retirement, none of my friends seem that bothered and some have only just started pensions!!! Ouch.

It's also highly likely you can forget about inheriting your parents house, that's getting less likely to happen.

I'm doing all I can at the moment as I have a young child, but it's often on my mind and I'll always put in as much as comfortably possible.

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Good points.

It's going to be a mess. The welfare system is already on its knees and there will be a collapse when all these OAPs start to claim too. Not to mention those who abuse their new found pension freedom and spend rather than save/invest.

Christ, inheritance. You're right, that safety net is gone...or the government will take it to pay for your care home. Disturbing.

On a lighter note, Moneychimp tells me that if you invest £30 a month for your little 'un for the next 65 years, using the power of compound interest, he/she will have £275,000 when they retire! Thanks Dad!

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This is a very interesting topic, I am 32 (i think i forget..) And currently have no pension plan as such.

I certainly think about it, but due to being a self employed trader (of all goods) I find I can make my money work much better for me buy buying and selling items. The % profit I make regularly I just cannot get anywhere near to on any other safe investment.

So my plan is to constantly grow my online business, Put profits into new stock and hope to make it before I need to draw a pension. 

That said when the time comes I will no doubt have very substantial stocks of easily sellable goods.

The buy to own ISA is looking tempting though.

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6 minutes ago, Madstacks said:

on any other safe investment.

That is the current problem Madstacks. What is a safe investment?

The banks and Government have shown they can't be trusted not to fiddle and work things in their favour. Anyone under 50 would be wise not to factor a State pension into their plans.

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1 hour ago, Danny-boy said:

I am worried.

I'm only 37 so have time on my side. I have been paying into a pension (as has my employer) for 20 years now.

Over the last few years I have been increasing my contribution by 0.5% a year so am now at 4% and 2% employer (soon to be 3% employer).

I also own half a house, and I plan to have lots of silver to sell when I need to.

I'm still worried though.

That's not the lowest employer contribution i've seen, but certainly not the best.  It's also important to be aware of the management fee.

Good job on the house mate.

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6 minutes ago, BaldyBob said:

That is the current problem Madstacks. What is a safe investment?

The banks and Government have shown they can't be trusted not to fiddle and work things in their favour. Anyone under 50 would be wise not to factor a State pension into their plans.

Yes thats part of the problem, the returns/dividends are just nowhere near enough to tie up my cash in with any investment id consider "safe" and even those are not foolproof. I certainly do not expect there to be any state pension when I reach retirement age..Its a scary thought. At least this stacking hobby could help long term though. 

Edited by Madstacks

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Im in an ok position currently, been paying in to a good work based pension scheme for 20 years.  No debt apart from a small mortgage with a few years to go and a good stack behind me as a safety net.

My thoughts are to keep assets out of the system.

I have just turned the big 40 on boxing day, by the time I retire I expect the state pension to means tested.  If you do the right things, work hard and save you wont a get penny back of all the money you put in (and I have worked since 17 and never claimed a single benefit)

My main goal in life is to provide a small house bought and paid for for my 7 year old daughter.  Cant think of any better way to give her a good leg up in life.

 

 

Edited by mr-dead

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Sparked an interest!

I don't think the state pension will disappear? That's theft by any other name. It may be worthless though.

I understand your point Madstacks, and I hope you do well, but won't you be working all your life to sell your goods in retirement?

It certainly ties you down. And would it pay the rent?

Hey, you're 32 (maybe) you'll figure it out :D

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I am worried.

I'm only 37 so have time on my side. I have been paying into a pension (as has my employer) for 20 years now.

Over the last few years I have been increasing my contribution by 0.5% a year so am now at 4% and 2% employer (soon to be 3% employer).

I also own half a house, and I plan to have lots of silver to sell when I need to.

I'm still worried though.

That's not the lowest employer contribution i've seen, but certainly not the best.  It's also important to be aware of the management fee.

Good job on the house mate.

No, it's not a fantastic employer contribution but it is about to rise and they foot the management fee also. Our financial advisor is also paid for by the employer.

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Oh yes!

Assets out of the system. You could be right mr. dead. p.s. I've never claimed a penny either (thumbs up).

garthy, it is doom and gloom...for others. I agree, the banks will never pay reasonable interest again. Those days have gone. But the alternative is alive and well. And its shiny.

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I think there may well come a time when the state pension becomes too expensive to pay, there may even come a time when something nasty might have to be put in their winter flu jab to thin down the pensioners to make room for more immigrants and reduce the pension expense.

 

^_^ = is this the right smiley to indicate a joke that might just have a slight ring of truth to it?

 

 

 

 

Edited by Scuzzle

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31 minutes ago, Roy said:

Sparked an interest!

I don't think the state pension will disappear? That's theft by any other name. It may be worthless though.

I understand your point Madstacks, and I hope you do well, but won't you be working all your life to sell your goods in retirement?

It certainly ties you down. And would it pay the rent?

Hey, you're 32 (maybe) you'll figure it out :D

 

No Roy thats the Beauty, when the time comes to liquidate stock I have no doubts at all they will reach good money, just how I sell will change , (move from online auctions with the hassles and packing to "live" auctions in bricks and mortar establishments) let them deal with the workload and just get my bank payment. 

But I do Plan to become well of and secure before I reach retirement age. nothing can ever be guaranteed but I will certainly try my best! 

Its certainly not very conventional, But Its the best route for me I think:)

Edited by Madstacks

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I'm 50 and only just got around to saving seriously. However, I had a small company pension that I paid into for 4 years about 15 years ago, which currently is sitting at around £25k and rising about £1k per year. I have a small pension pot when I had a mortgage, because I decided to have one of those new fangled, (well new at the time), Pension mortgages, which is sitting static , so it seems, at about £13k, and because I opted out of SERPS many moons ago I have about £15k sitting there.

So at the age of 50 I have about £53k worth of pensions, which is bugger all really. However, I do still plan to retire at 60, so I have 10 years to get everything in order, and if everything pans out, I'm aiming, with some careful aggressive investing, to have a pot of £150k - £200k.

I intend to live to about 80, so I have to make that last another 20 odd years. £200k at 20 years is about £10k a year on top of my state pension. Not huge amounts, it all depends on inflation in the coming years, but It'll be enough to put beans on my toast.

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Great topic Roy this is something I wish people would talk about openly. Those I speak to have the blinders on and many people including members of my own family are planning to be 100% reliant on the state in their old age. That seems utterly crazy to me given recent history in countries not too far away. It can't happen here though can it.

I am of the same mind as Garthy - the state pension and any public pension will probably not be available when I am looking to retire in 40 years time. The UK will have gone full Greece by then I reckon. Probably.

Despite my pessimism and as insurance for the fact that I am routinely incorrect about these things - I am paying into a pension which should provide a good quality of life in retirement. I have 8 years invested so far. I also invest in stocks and bonds which with current returns should provide a small additional income in the future. 

If things do go wrong as predicted and the government chooses not to pay out while the stock and bond markets crash in the background, then at my current pace I may just be able to provide a very basic quality of life in my old age from metals alone. That is if they continue to keep up with the cost of living as they have done historically.  

To have any chance of retirement regardless of what happens, I need to own a house outright. Circumstances and work means that part is yet to happen, but it is next on the agenda.

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1 hour ago, HighlandTiger said:

 

I intend to live to about 80,

So your previous life in Glasgow hasn't Halved your life expectancy by osmosis/scotch-pie/ pizza crunch supper then? In shettleston,  Hamsters tend to outlive males of the household!  

I wasn't aware you could choose your intended year of death, self induced excepted. Can I have 2314 please,  who do I speak to? I think my gold and silver will have appreciated rather nicely over this time. 

 

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I don't think there will ever be a government brave enough to get rid of the state pension. Any that did would find themselves out of government in a heart beat. No one would vote a party in that would abolish the state pension. It's not going to happen. Unlike Germany, we have enough young people being born, (thanks mainly to the influx of migrants and their ability to breed like rabbits), that will pay for our increasing older generation.

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6 hours ago, Stu said:

So your previous life in Glasgow hasn't Halved your life expectancy by osmosis/scotch-pie/ pizza crunch supper then? In shettleston,  Hamsters tend to outlive males of the household!  

I wasn't aware you could choose your intended year of death, self induced excepted. Can I have 2314 please,  who do I speak to? I think my gold and silver will have appreciated rather nicely over this time. 

 

As I only lived in Glasgow for a couple of years, and wasn't a fan of scotch pies and deep fried pizzas, (hence the reason I searched high and low to get Pukka Pies to do a deal with my local Bookers cash and carry, I say local but the nearest cash and carry to my pub was 85 miles away), I think I got away with it ;)

If i do manage to live past 80, I will either have found myself a rich widow to keep me in the manner to which i will be accustomed to, or I'll be in a home paid for by my offspring. Only fair, I paid for them for their first 18 years, they can look after me for a similar amount of time. :) That should cover me to about 98. If I'm still around then, well I'll worry about that then. 

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But how safe are private pensions anyway? I think all pensions are a ponzi scheme. Private and public.

Why did pensions not exist before the last century? In Dickensian Britain for example?

Your pension funds can go bankrupt. It can be taken by crooks, taken by the government and socialised.

Promises, promises..... Your fund will grow by 4% every year guaranteed. It's all Bernie Madoff to me.

Sorry to be the cynical one.

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But how safe are private pensions anyway? I think all pensions are a ponzi scheme. Private and public.

Why did pensions not exist before the last century? In Dickensian Britain for example?

Your pension funds can go bankrupt. It can be taken by crooks, taken by the government and socialised.

Promises, promises..... Your fund will grow by 4% every year guaranteed. It's all Bernie Madoff to me.

Sorry to be the cynical one.

From past experience, that's an argument used by everybody who hasn't got a pension.

Anything can happen, bank bail-ins, theft of PM's, pensions disappearing, etc. All one can do is ones best in the hope of providing for themselves and their family once their working life comes to an end.

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I think the most important thing you can do nowadays is pay off your mortgage and secure the roof over your head, I've done this, I did without for long enough put all my spare funds into paying off my mortgage but my neighbours are all spending on new cars and a couple of foreign holidays a year some are even taking equity on their property to do so and the banks are letting them.  If there is any kind of financial turmoil this won't end well for them, who's to say if we ever end up like Greece than the banks wont flip interest rates to sky high so they can swap all that paper nothingness for some nice solid bricks and mortar.

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