Pension increase

Some think all employers are fat cats Gilly

I really don’t think we could sustain paying a 5% contribution on top of the huge employers NI payments (employment tax) .

Next years the contributions are rising to 5%

I am concerned about the “work place pension” and all the new companies that have been set up quickly on the back of it. Now my concern is what is happening to the contributions? Are they being invested correctly or mostly used to pay fat cat salaries and finance glamorous buildings with only the tiniest percentage actually being invested?

My workforce are all members (with the exception of DH and myself) and I’m worried we’re all being conned.

The French system is unaffordable because the pensions are paid from too young an age.The argument for raising pension age is unassailable - that’s not the same argument as th3 level of pension. The other thing that is not factored in in this country is that if pensioner income is increased most of it will find its way into to economy very quickly and will help to stimulate economic growth through increased demand. Finally, if we removed tax relief at the higher rates on pension contribution there would be billions accruing to the Treasury which could be used to increase the BSP

Why can’t we do what the French and Germans do for example and have a generous pension scheme that is run by the government and which everyone contributes to?

But the French system is unaffordable, which is why Macron is trying to cut back on it at the moment.

Pensions are not paid by governments, they are paid by tax payers, that is people like you and me. To give those levels of pension, plus all the other benefits so many think should be paid, would mean the standard rate of taxation going up to at least 30p in the £, possibly double.

I have always said that I would happily see tax rates rise to finance better benefits, but whether I could cope with my taxes doubling, I am less sure.

The people at the bottom are always hit the hardest,and a lot of smug folk who think they are in minimum wage jobs because ,a they're too stupid to be paid a decent wage or b,that most are scroungers anyway...claiming top up benefits,are happy to see them struggle .
There but for the grace of your god ...or good luck or a better education go you.
Lets all hope with the trials ahead an awful lot more of us dont end up struggling .Life is very hard for a great many young families who work their socks off and never manage to get anywhere through no fault of their own
.That promised rise would have made a lot of them happy then that would slip away when reality hit home

I agree Maryeliza

Why can’t we do what the French and Germans do for example and have a generous pension scheme that is run by the government and which everyone contributes to?

Well exactly the same as happens now

That's live on not in!

What will happen to people who haven't paid into a scheme? What will they live in when they retire? Serious question.

Tell me about it Anniebach our employer contribution doubles next week too. Neither me nor DH can afford to have a pension . Something will have to give . I’m seriously frightened for the future .

I think it’s not that straightforward - you can still lose out as eg the Carillion pensioners to be are doing. Given all the scandals over the years about pension schemes,my guess is that work based pension schemes will be the next one in 10-20 years time.

Apparently, money paid into pension schemes will be protected by the FCS, in the same way as savings.

The BSP introduced in 1948 was not intended as a top up. At that time most workers were not in occupational pension schemes.

Oh,. Misunderstood the thread title
I was planning my Caribbean holiday in my private jet , but alas not any more

It can be opted out of, that's what they fear many will do because of the increase. You can increase/reduce your payments too I think (within the limits) - trying to remember what my son said. I know he has been paying 5% into his from the start. He has moved companies three times since it started and it's been fairly hassle free moving the pension. The company he works for now is just about to change providers for the second time in a couple of years, so they are shifting it about to try and make the most of funds.

I do believe that there is an opt out option. Am I right or have I misunderstood?
I am sure that there are people that will find it very hard to find this money, some who may feel it’s impossible but the majority will find that it is very worth it in the long run.
Surely if it’s better for the majority then it is a very good thing?
I remember the days when we didn’t have much money. I went out with real money and occasionally had to leave something at the till as the £’s ran out.

I'm in favour of anything which forces people to plan and save for retirement.

Too many people seem to sleep walk into old age then wonder why they haven't enough money for a comfortable retirement.

After all, the state pension was always only intended to be a top up, not an income to solely rely on.

So Jane for how many of the years you were paying into your pension were you earning the equivalent of today’s minimum wage? Was your pension final salary - because this one isn’t.

At times!

Next year it rises to a 5% increase . Were you a minimum wage Jane?

Anniebach the money has to come from somewhere! What's the answer? More taxation for everyone? I was happy to pay into my workplace pension. It seemed a lot at the time but it gave me a sense of security and has been well worth it.

People have to live now