A life of Poverty...

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A life of Poverty...

Digimods

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Anyone else my age worried about a life of poverty?

I work full time, training on the job, and have had an awesome pension scheme for the past few years.. but now, I'm having to pay twice as much to have the same amount of money to retire on (I opted for final salary pension)

That, coupled with the increase in house prices, the fact that everything is taxed to the eyeballs (and it will increase no doubt)...yet employer's don't seem to be increasing wages..

I'll put my little violin away now..
 
Be glad, you'd be earning 60p an hour in some EU countries....

A final salaray pension is very expensive.
 
Depends digi.....it's not as simple as that. Somebody always has to make money out of you along the way.
 
The Negotiator said:
Depends digi.....it's not as simple as that. Somebody always has to make money out of you along the way.

IMO you run a heavy risk with Money Purchase, ie state of the stock market, investments etc etc.

Jeez, to be honest, I think you get stiffed whatever you chose, like all working class!
 
Yep, but a final value could be a safe but expensive option, you just never know, it's crazy you're doing something to help yourself in 45 odd years time, there maybe not be a world in 45 years time!
 
I call it sensible.. my job package is/was awesome.

Free healthcare, buy two get one free share scheme.. etc etc.. just this thing with the pension has pissed me off.

45 years? I bet it'll be more like 55 by the time we get there mate!
 
To be honest I can't see the end of my student debts. I'm lucky to be in a well paid profession but still it seems never ending! Even at £200 per month I'll be paying them off for 10 years or something silly. I have been contributing to a money purchase scheme since I started work (my employer also contributes generously) and with upcoming changes to pension structures you can choose your investments from a much wider range - I plan to use mine as a deposit on a house as soon as the car and main bank loan is paid off.
 
And you cannot guarentee what you will get at the end of it. Its one of the biggest gambles of your life and no way out of it:mad:

Steve
 
Think yourselves lucky !!!!

Pushing 40, got bugger all pension and low income due to stopping at home when kids were little plus working part-time for a lot of years. Now on my own and struggling to make ends meet even though I'm working full-time.

Living at home with the 'rents? Make the most of it !!!!

My pension as it stands at the moment is about £20 a week !!! Can't wait for that !!!!!
 
It's good that they contribute well, my company is good at that. I just find Money Purchase too risky, especially with the current stock market situation.

Our pension pot was 13 million in the red last year, the company paid back 10!
 
Worked for a good company for 25 years paying into a final salery pension, company taken over, excess in pension fund used by purchasing company, my employer shut down pension froze worth bugger all!:(

Steve
 
When shut down was anounced we had 2 options at the time transfer out to a private scheme or stay in the company scheme. I opted to stay with the company at least I was guarenteed a min of 2% growth a yr. People I know who transfered out lost around £14,000 of the transfer value in costs in the first few years so its a gamble which ever way you play it.

Steve
 
I used to pay into a stakeholder pension with standard life. Until they sent me a statement on its projected worth....

£100 pcm now (age 28) equated to a £65k lump sum or £400, yes £400 pcm at retirement. Not too good.

One of my biggest beefs with pensions is that the money is locked away. OK the government does add tax relief giving you a 28% boost (o.n.o) but even then, if you were to become seriously or terminally ill at age 50, the money is still locked. You can't cash it in and have a good send off :-( or that's the understanding as the reps put it.

I now put the same £100 pcm overpaying off my mortgage. In doing so I can pay it off 15 years early! That means I'll then have 15 years times 12 months of mortgage payments (£400pcm) (+£100 overpayment) to then put into an investment, or just savings...

By my reckoning that makes 15x12x500 = a £90,000 lump sum.
I will own my house outright and I'll have a very cashable commodity should the worst happen.

Vs a locked away pension ( I have £1200 locked away in my std life one) - the value of which can go down as well as up, I feel more secure in the traditional safety of bricks n mortar.
I feel very bad for first time buyers now. I got in just in the nick of time, though I kick myself for not buying a house straight from uni. If I had, I'd be now sitting very pretty.
 
My current situation is fairly gloomy. My outgoings mean that I have just enough left to cover petrol. I work all day and my missus works all night, so we never see each other. My boss, I am the only employee, keeps saying he;s gonna chuck it in or kill himself, which would leave me unemployed. I have no pension and no spare cash to start one. I do own my own house, but it is falling apart and I don't have the money or time to put it back together. I have three kids, all of whom, break everything and always want food.

On the plus side, life is a wonderful thing and the world is a place full of opportunities waiting to be ceased. I just need a great idea, oh and a bit of motivation wouldn't go amiss.
 
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