UK pensions lowest in developed world!

I thought life expectancy was longer and healthier, I'm sorry if I was wrong. I will look to see what I may find.

How many healthy years past retirement age do we need?

My point was also: what is wanted? UK has lowest pensions, is that bad? What raises in taxes would be good? It will cost something, coming from somewhere to increase pensions.

Norah Your comment that "we live longer, healthier lives now" is, I think, mistaken.

Whilst it is true that average life expectancy has increased significantly since the 50's/60's, I believe I'm right in saying that various pieces of research have found that we have fewer healthy years.

I’m with you missadventure I would really like to see at least a years worth ( dare I say two???) of retirement with my DH before the drop dead . I really don’t see a lot of hope though.

I seem to recall that at one time many employers stipulated that an employee had to work for the organisation for a period of time, often as much as 5 years, before they were eligible to join a company pension scheme. For anyone who changed jobs, either for improvement or by necessity because they had to move, this meant that they may not have had the opportunity to become part of a company pension scheme. I believe the rules were changed to make it much easier for people, including part-timers, to join a company pension schemes.

When my firm was taken over by a much larger firm of solicitors, the pension provider changed. Unfortunately we were moved to Equitable Life which, through bad judgment and decision-making by senior officers, collapsed, significantly reducing the pension of most people in the scheme.

There have also been several cases in which companies have collapsed, leaving under-funded schemes and much reduced pensions for contributors. It hardly encourages people, especially people on low wages who need every penny to pay bills, to put their money into a pension.

Just as well. I'm hoping to see a least a couple of years of my pension whilst I'm still alive enough to enjoy it.

Overall life expectancy is considerably higher in the last century.

Of course the wealthier tend to live longer. Stress is a big killer .

I have an underlying medical condition that feeds on stress .

Don't those who are wealthier live longer, healthier lives? It used to be the case.

From the article: The UK is right at the bottom of the scale for pensions (OECD) Is this a bad thing? What is a good pension amount?

Nothing can be fixed if there is no goal? To have a larger pension scheme taxes would go up, is that what people want? I am fine with the idea of higher taxes. The money has to come from somewhere.

Few have saved anywhere near enough to supplement their state pension. And why is that? Should emphasis be placed on living with no wasteful spending on frivolities and saving more as our parents did?

Young people setting out on their working lives today are also facing the prospect of having to work well into their 70s before they can quit. Is this a bad age? We live longer healthier lives now, don't we?

I've been really cold this winter; in fact I've kept my heating on throughout the night [something I never used to do] and walk around with my hot water bottle most evenings. I'm so glad that, when I feel guilty about the amount of gas I'm using I know I've got £200's worth in hand.

Those who complain about us all getting winter fuel allowance could ask for it to be subsumed in the pension, where those on large pensions could be taxed on it

I agree with that dj

Does anyone really think that those on the lower end of the pay scale, paying full NI, tax and the new (rubbish ) workplace pension will be any better off in the future? For those at the lower end of the pay scale the workplace pension will be a pittance and might even stop them from getting vital benefits, as the pension companies will be happily creaming their profits off first .

But there were a lot of people who complained when that was brought in, GracesGran.
Strangely, if people were not paid universal state pension, they would have to claim benefits, so the ordinary tax payer would be paying for it anyway. Makes much more sense to raise the pension.
Those who complain about us all getting winter fuel allowance could ask for it to be subsumed in the pension, where those on large pensions could be taxed on it.

It does come down to poor choices in many instances but not always. Sometimes it just seems to be sheer bad luck.

Not just sometimes Jalima. It's called "life" and it's why we introduced Universal State Pension among other things.

LG (I cannot call you Lazigirl ) I think you are very right. The 'self-employed', who are the Emperor's new clothes of the employment statistics, will throw up all sorts of issues in the future, pensions being one. The usual Tory short term fame for long term pain.

Oh right, OK

Yes, that's been corrected by nonnie, Jalima.

We pay 20% tax until our pay reaches £100,000.
I don't think that is correct.

Yes, I do know people who were on £100,00 plus (far in excess of what we ever earned between us) but they made some bad choices, risky decisions and in fact are no better off in their retirement than we are who were always Mr and Mrs Cautious. The tortoise and the hare syndrome.

It does come down to poor choices in many instances but not always.
Sometimes it just seems to be sheer bad luck.

Many workers in the burgeoning so called gig economy, are deemed to be self employed, are generally low paid, and are missing out on their employers contribution to their pension, along with other rights afforded to employees. It's hard to see how they will be in a position to save towards a pension.

Nonnie, I have been accused of being both 'judgmental' and being on a 'high horse' but I don't care, I am not meaning to be. I am proactive and think others need to be as well. Some people just don't seem able to keep abreast of government information, move quickly when legislation changes to protect themselves, take professional advice given, especially when they paid for it, or personal responsibility and plan ahead. All schools should teach financial planning to help young people cope with finances and debt and to teach children they will need to give up some things now in order to have a better time later. I was taught that lesson by my parents. When I started work my Dad told me not to pay the lower married woman's NI that I could have paid but to pay my own full NI, and not rely on my husband. I took his advice but many may have not been given good sensible advice by parents.

MY DD works in professional role and informed me that only a few of the woman she works with pay much pension but their husbands do pay it. Money is really tight for her as she has nursery fees to pay but I told her no matter what keep paying her own pension.

I am not anti you or anyone else Nonnie. I am anti thoughtless and rather arrogant remarks. Poverty makes poor choices not people. Equally wealth makes easy ones. With sufficient money you can make a poor choice and forget it. Without you often end up paying more and paying twice so you are trapped in your poverty with little chance of planning ahead for weeks or months let alone for your retirement.

If you went through life thinking you were giving up "lots of things that others took for granted" it sounds as if you have never known, either in your own life or others, the day to day anxiety of not being able to take anything for granted.

We need to pay enough tax to provide a decent basic pension however we do that.

Only 'partially'? Better tell HMRC because it was copied and pasted from their website!

Yes, you are partially right, nonnie.
That's the amount after the personal taxfree allowance has been taken out.

"Millions of people will pay less in tax as a result of the rise in the tax-free limit and higher-rate tax bracket announced in today's Budget.

As expected, the Government is to raise the "personal allowance" to £11,850 in the 2018-19 tax year - up from £11,500 currently.

At the same time, the higher-rate, 40pc, tax threshold is to increase to £46,350 from £45,000.

The move is part of the Conservatives' previously-announced plan to raise the personal allowance to £12,000 and higher-rate to £50,000 by April 2020.

A basic-rate, 20pc, taxpayer will save £70 as a result, while a higher-rate payer will save £340 a year.

The Government said the gradual increase in both allowances since 2010-11 means a typical taxpayer will pay £1,075 less in tax per year than when the coalition government came in.

In the 2010-11 tax year, the personal allowance was £6,475 and higher-rate threshold £43,875."

It doesn't change my main point, though. If you want a better pension, you should be prepared to pay more tax. The government thought that reducing taxes would be a winner.

Very brave newnany you may well get a very judgmental response as I did when told I was polishing my halo, if Graces is even handed and not just anti me!

"We gave up lots of things that others took for granted. Oh please - more halo rubbing. Not everyone has the means. That is rarely (though occasionally) there fault. Not everyone sees they should change their initial decision. Not because they are not as wonderful as you but because they made a different decision on the information available to them. You could just as easily come out on the wrong side."

I am not being judgmental Gracesgran but just pointing out the facts. I know the rules changed, pension ages changed, they changed for me too, I lost some money into SERPS as well. But Granny 23 you did take responsibility and set up your own pension and now will be above the limit for pension top up so although not rich you will be able to manage, because you took action.

Many people are saying they had no company pension on offer so therefore did not pay pension. That happened to me too and that is why I actively sought out a Stakeholder pension. If there is no company pension then anyone can take out a stakeholder pension and pay in any amount even very small amounts will all mount up and be invested to gain interest. You can also chose where the money is invested so giving you some control. If things are too tight one month they don't mind if you miss the odd month if you tell them in advance. At the end of the day whatever money we were all paid each month/week we all had the choice whether to spend it all or save a bit into a pension and I went without things I would have really liked at the time in order to make sure my retirement would not be too tough. Also for every pound paid into pension the government pays in an extra 20p so if you could only pay £100 a month then that will be £120 paid. If you pay income tax you could be paying some of that money into a pension then you will pay less tax.

Personally I think any government should force everyone to pay at least 8-10% of their wages into their pension pot.

Otherwise we are just making the next generation pay our way which is not fair and a lot of younger people complain about inter-generational fairness.

Durhamjen is correct we only pay 20% on incomes up to about £48,000 in many countries the government takes far more in tax but then you get a higher pension. In Sweden I think the income tax is double what we pay in UK. Our government allows us to keep far more of the money we earn and expects us to to take personal responsibility to pay into a pension. You can't have your cake and eat it too, pay nothing in and then complain you won't get much back. As it is those who did not make pension provision will be given pension top up but then that money can't be used for NHS or social care, or education, it can only be spent once.

Going forward the government ought to make everyone pay 8-10% pf their earnings into a pension.