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What do you consider a low income in retirement?

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DaisyAnne Thu 30-Mar-23 09:16:29

Every time I put an update about benefits on GN someone (or several) will complain that they won't get it "even though on a low income". We even had one person, some time ago, whose income was twice that of someone receiving Pension Credit, saying this.

As this is a Grandparents' forum, let's concentrate on pension-age benefits. So my question is:

If we had a universal pension and not one that kids us that we are getting back what we paid in and earned, what should that amount be. It would need to provide a living income for each pensioner where no living costs (disability is different) had to be covered by benefits?

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Doodledog Mon 10-Apr-23 20:36:32
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They may. Probably not though. The odds are much higher that a randomly chosen person will be on minimum wage than in the top 1%

In January 2023 the top one percent of earners in the United Kingdom received an average pay of 14,622 British pounds per month, compared with the bottom 10 percent of earners who earned 719 pounds.

www.statista.com/statistics/1224844/monthly-pay-of-employees-uk/

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Hetty58 Mon 10-Apr-23 20:40:54

People have the idea that they're paying (along with their employers) into a 'fund' - then withdrawing their state pension from that. It doesn't exist, though, in reality, the younger generation/s pay the pensions of the older ones. We come unstuck when there aren't enough working youngsters - or too many people live too long. Contributions have to rise accordingly.

Nobody particularly likes being 'on benefits' either - but take a look at your pension increase letter - yes, it's a benefit!

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Doodledog Mon 10-Apr-23 20:49:30

I think most of us are aware that there is no 'pot', Hetty, but it's not unreasonable to expect the scheme to be managed so that those who pay in get out, whether at the time or 4o years later?

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