UK pensions lowest in developed world!

I think that the workplace pension scheme will improve over time and bigger contributions will be paid. No government could introduce a costly scheme so imo it has started small and will increase gradually in an acceptable way.

It is simplistic to say that other countries pay more income tax without looking at the bigger picture. What do they get for that extra tax? Do they get better childcare? Do they get tax refunds for their mortgages? Are they taxed on their savings? Do they get subsidised fuel? What about local taxes? There are some many things we don't know so direct comparisons are not possible.

Nowadays when pensions collapse there is a fund which pays out I think 90% of what would have been paid so people are protected to some extent. Of course we all pay for that fund.

When I stopped teaching and became self-employed, I was persuaded by a financial adviser to take out a personal pension, and to transfer my teachers superannuation pot into it.
I thought he knew what he was talking about, as he was an ex-teacher, too.
Then, after a couple of years, I was told by the pension company that it had been missold to me, as I wasn't making enough profit to have a pension.
I was given some compensation, but had to leave it in the same company, but not add to it.
After they'd taken their commission, there wasn't much left when I reached 60. It was called a trivial amount.
I could take it out as a lump sum, which came in handy as we were moving the next year.

So some of us try and do the right thing, believing all the people who should advise us, and things go wrong.

Some of the financial advisers could be very persuasive.
I remember when ex-teachers were recruited by these companies and went round trying to persuade other teachers to 'lift' their pensions and put them in the firm's schemes because it happened to some people I know.

It is simplistic to say that other countries pay more income tax without looking at the bigger picture.
Absolutely, nonnie; their healthcare may be funded differently too - not at all, or merely subsidised and you have to top up with your own separate health insurance fund. They may or may not get better funded childcare. They may pay no inheritance tax or less VAT equivalent.

It would all need to be investigated very carefully and thoroughly to see how tax is raised and public services funded in other countries before making a true comparison.

In the meantime, we still have a government wanting to give individuals tax breaks while keeping state pensions down for all of us.
Surely we are in enough of a mess now to cancel tax breaks in April.

I think Nonnie is spot on, the workplace schemes will get better over time. But it is down to the question of what is the least acceptable pension to be provided? Maybe as it stands is enough?

I hope you’re right Norah or else my (young) employees have signed up to a white elephant scheme where greedy scheme managers cream their profit off before they invest a single penny .

I have always thought the government was trying to follow the Australian scheme. This article tells you all about it but do read to the end as there are minuses as well as plusses.

Google: Australia’s A$2.3tn pension pot is the envy of the world

You may have to answer a silly question. Unfortunately, if I put a link in it goes to the front page.

Newnanny is absolutely right in saying we should all be proactive in providing for ourselves in our retirement.

I realised decades ago that the state pension was only ever intended to be a back up to proper retirement provisions, and that no-one should expect to rely on it.

We decided to invest in property and bought a house many years ago, which meant we have been able to ride out the occasional dip in property values.

The house has been rented out, and as it has increased in value considerably over the years, has proved to have been a wise investment.

Like Newnanny we had to make some sacrifices to buy it, but decided that it was worth it to ensure that we would have a comfortable retirement with enough income to enjoy retirement.

Jennifer just be careful about who rents your house.
We had the same idea, but now when we want to live there the tenants won't move out.

Gosh Fennel, how awful. How long have you been trying to evict them?
Can't the letting agent help you?
It's always a fear isn't it, to get rogue tenants?
We have taken out Rent and Legal Protection cover recently after hearing so many horror stories, which would cover legal costs if our tenants dug their heels in.

Most of the bad publicity seems to be about rogue landlords, but there are good and bad on both sides of course.

Good luck, and I hope you manage to get your house back soon.

Are you directing us to the FT article Gracesgran?

As I've heard some complaints about the Australian pension system from wider family I'd be interested to know as I only ever seem to hear half a story. I do know that the full means-tested state pension is very generous in comparison to ours, but then wages are so much higher too.

I'm not sure if it is the case now, but at one time Australians could cash in their entire pension pots which is where I thought George Osborne could have got the idea from. Whether this is true of the Super pension pots I don't know.
This resulted in some older people being preyed on by financial firms promising wonderful returns and subsequently losing all they had saved over the years.

I've slept since then and tried to sort out what my mother's care is going to cost Jalima. That memory has found another home. I'll check.

Yes, it is Jalima.

The problem with politicians, imo, is they see a scheme working well and just think they can implement it on a different culture and size of country. It may work well but I would really like to think they had done their homework and I just don't. I know every time I talk about something they do in Aus, that sounds like a good idea, my son will point out the downside. He likes this system but not everyone is served well and he is quite a long way of pension age. As I say, it could work well but I want a proper discussion about it and as it is they just seem to be sliding it in. Someone will get caught out, having done what they were told to do, and that is never going to help.

Don't worry! I will have a search later on. Have to cook now.

The scheme has its merits but I think the main point that is striking is that it is trying to get as many people as possible away from having to claim the State funded Age Pension.

Also contributed to private scheme and am fortunate that I was able to earn enough money to do that - many have worked minimum wage jobs all their lives and unable to save - private pensions are also not all they claim - Equitable Life (rock solid) problems resulted in only 22p compensation for every £ they took from me ....believe some increase in NI pension portion should be ringfenced for all......we are one of the richest countries in the world but have homeless on our streets......something is wrong

We have Australian friends who are fairly comfortably off, but far from rich.
Since their pensions are means tested, they receive no state pension at all.

When comparing various countries' systems/benefits, etc. it does help to compare like with like.

E.g. In France, where certain state provision e.g. child care is better than in the UK, adult children are obliged to help towards the cost of an elderly parent's care, if that parent is short of funds.
A French friend of a dd, working in the U.K., is required to pay €250 a month towards her father's care - a significant amount, when she has a mortgage and childcare costs to pay for.
There is no such legal requirement in the U.K.