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Half Of Uk 'have No Pension Pot'

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http://news.bbc.co.uk/1/hi/business/8068728.stm

Half of UK adults aged between 20 and 60 are not putting aside any funds into a pension, a survey commissioned by the BBC suggests.

The survey of 1,358 people by Gfk NOP indicated the situation was worst among under-30s, with only about one in three or 36% putting anything into a scheme.

Affordability is the main barrier for young people, with many saying they are instead having to pay off debts.

Among 41 to 60-year-olds, 45% are not currently paying into a pension fund.

The report suggested a number of reasons for this, ranging from people who had been made redundant to women who had never joined a pension scheme because of leaving full-time work to have children.

'Too far away'

Tom Wainewright, 25, an architectural assistant living in east London, said starting a pension was way down his priority list.

"I haven't given a pension any thought," he said.

"At the moment I'm just trying to keep down a steady job. I was made redundant because of the recession and have had to take a pay cut."

Other young people said they had not started a pension because they did not know how to, or else felt retirement was too far away to be worth planning for.

Despite only 36% of respondents under 30 having a private pension, half of all those who took part in the survey said they were still confident they would be able to live a comfortable retirement.

Ed Gardner, chief executive of UK retirement and savings at pension and insurance firm Metlife, said young people were wrong to assume this would inevitably be the case.

He points to the fact that more generous final salary pension schemes are continuing to close to new members, and that instead, younger people will have to rely upon defined contribution pension schemes, which generally provide less of a return.

"Unfortunately the tide has turned and younger people face even more challenges in saving for their retirement," said Mr Gardner.

'Disillusioned'

Yet with the study saying that 45% of 41 to 60-year-olds also do not have a pension, the threat of having to work long into retirement is now a more immediate concern for many people in that age bracket.

That is the situation that Andrew Knowles, 44, and his wife Rachel, 43, may face.

Mr Knowles paid into several pension schemes over the years, but having been made redundant in January, and choosing to his build his own business, his pension will not allow him to retire at 65.

His wife is trained as a chartered account, but having had four daughters, she has not put anything into a pension.

Mr Knowles said he thinks the whole concept of retirement is changing and that people's working life will gradually wind down in their 70s, rather than just stopping at 65.

"I think the internet will offer a lot of opportunities for ad-hoc home based working [for people above working age]," he said.

"I'm disillusioned with the general financial system and pensions are part of that."

Mrs Knowles added: "We will be doing some kind of work well into our 70s.

"We accept that's where we are, because we haven't got the pension provision."

'Nowhere near enough'

According to Mr Gardner, people have to ask themselves how much money they will need to retire at 65 and then expect to live for 25 or 30 more years.

"What you will find is that many people are currently saving nowhere near enough," he said.

The government is trying to mitigate the impact of a potential pension "time bomb", through the introduction of Personal Accounts, due to be rolled out in 2012.

Personal Accounts will be a state-sponsored pension arrangement, in which employees will be automatically enrolled, contributing 4% of their salary. The employer will pay 3% and a further 1% will come from tax relief.

Luckily the govt hasn't run up record debts, so need to worry.......

The laws of unintended consequences again.

I wonder how many of these people had their homes as the pension plan, which now appears to have gone down the swanny?

Edited by interestrateripoff

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http://news.bbc.co.uk/1/hi/business/8068728.stm

Luckily the govt hasn't run up record debts, so need to worry.......

The laws of unintended consequences again.

I wonder how many of these people had their homes as the pension plan, which now appears to have gone down the swanny?

Surely this will drive up house prices!

Queue the motley HPI crew!

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I fear that this situation will only get worse.

I am in my mid thirties and can only afford to put a paltry amount aside. If wage inflation hovers around 0% and inflation kicks in, my paltry amount will reduce even further.

I realise my situation and the problems that I face later on in life. Unfortunately I don't appear to be able to do much about it though.

Such is life.

VB

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http://news.bbc.co.uk/1/hi/business/8068728.stm

Luckily the govt hasn't run up record debts, so need to worry.......

The laws of unintended consequences again.

I wonder how many of these people had their homes as the pension plan, which now appears to have gone down the swanny?

Half of UK adults aged between 20 and 60 are not putting aside any funds into a pension, a survey commissioned by the BBC suggests.

I'm staggered the glass is half full to be honest.

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It has been mentioned on this forum many times.

So has the coming expense burden to the working and young classes, caused by mass boomer retirement.

I often say that there is no hiding the simple mathematical truths inherit in demographics.

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What incentive is there?

You buy a house that has to be sold off to pay for your care, you can't trust the banks with savings and if you have nothign the govt bestowes all sorts of goodies on you.

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How are we supposed to save for our own retirement when a huge portion of our stagnating incomes are taken up by subsidising the pensions of the generations above us via ridiculous house prices/rents/BTL? :rolleyes:

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a large pension pot is a waste of time anyway - because the government dictates when you can access it - it's made it 55 from 2010 - it will no doubt then go up to 60, then 65..... then there is the corrupt way it's organised and the way the pension pot is raped by the government and the advisors...... - I would much rather pay the tax and have access to the money when I can.

I am also mid 30's - between us we have enough in our pensions (we have had employer contributions that were not convertible into extra salary so you may as well take) to 'survive' but there is no way I am locking up so much money that I have to wait till some bureaucrat says I can get at it - I want it when I am 45, not when I am 65 plus - then I can decide what to do with it.....

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However I see plenty of these poor hard done by unfortunates pi$$ing it away on a Friday night.

Or turning up in droves for a "music" festival having splashed 300 quid for the experience.

Perhaps its a case of dont want to rather than cant afford to.

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The idea that a "pension pot" is desirable is not necessarily that mainstream an idea.

Like most folk, I refuse to give over my shiny coins to men in suits promising me riches at some later date,

they, unlike me, assuming the world carries on an even keel.

A pension is just savings, with theoretical added value which you cannot access till a fixed date in the future.

Not too bright if you invest in that?

Meanwhile you can approach old age with all sorts of different strategies...

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a large pension pot is a waste of time anyway - because the government dictates when you can access it - it's made it 55 from 2010 - it will no doubt then go up to 60, then 65..... then there is the corrupt way it's organised and the way the pension pot is raped by the government and the advisors...... - I would much rather pay the tax and have access to the money when I can.

I am also mid 30's - between us we have enough in our pensions (we have had employer contributions that were not convertible into extra salary so you may as well take) to 'survive' but there is no way I am locking up so much money that I have to wait till some bureaucrat says I can get at it - I want it when I am 45, not when I am 65 plus - then I can decide what to do with it.....

Indeed, I am not paying into a pension. Always thought they were a waste of time.

I put into a savings account, which is also a waste of time. :(

At least I have access to what I have not got.

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However I see plenty of these poor hard done by unfortunates pi$$ing it away on a Friday night.

Or turning up in droves for a "music" festival having splashed 300 quid for the experience.

Perhaps its a case of dont want to rather than cant afford to.

I agree that that is true for a lot of individuals.

I don't think they realise the position that they are in.

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I don't have much money now, so having none later won't hurt too much.

Granted, the frostbite and hunger might though...

That's how I try to look at it...the main priority is to aim to have a paid for property by the time you retire, something small economical to run in an area that you feel safe in with good public transport and a community feel...guests can always sleep on the sofa. ;)

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I'm 29.

I started a pension on Sept 11th 2001, and was made redundant 5 days later.

I didn't have a pension in my next job as I earnt only 15k a year and paid £700 a month rent.

I then had 4 years working for local government and therefore have a small pension provision.

I've been self employed for the last 2 years and can either chose to lock up my money for nearly 40 years either trusting firms who have lost billions to manage it for me or spend my time managing it myself.

Yes I'd save a lot of tax but £2000 a year now that I can access is better than £2400 now that I can't touch until I retire.

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Guest BoomBoomCrash

Pensions are going to be irrelevant as the future is going to pan out in one of two ways...

1. Techoutopia. All diseases conquered (including ageing), nanoscale self-assembly commonplace, strong AI and so on

2. Back to the stone age

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How are we supposed to save for our own retirement when a huge portion of our stagnating incomes are taken up by subsidising the pensions of the generations above us via ridiculous house prices/rents/BTL? :rolleyes:

Plus the massive tax increase (20p in the £ base rate) we are about to see to pay for the multi-trillion pound civil service and state pension black holes.

I'm 31 and I've saved nothing for a pension and don't plan to.

I could, but it would be means tested away.

Unless you can put away A LOT then there is no point... any small amounts will be means tested away through other benefits/taxes.

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I'm 29.

I started a pension on Sept 11th 2001, and was made redundant 5 days later.

I didn't have a pension in my next job as I earnt only 15k a year and paid £700 a month rent.

I then had 4 years working for local government and therefore have a small pension provision.

I've been self employed for the last 2 years and can either chose to lock up my money for nearly 40 years either trusting firms who have lost billions to manage it for me or spend my time managing it myself.

Yes I'd save a lot of tax but £2000 a year now that I can access is better than £2400 now that I can't touch until I retire.

Land. At the right time. Because they ain't making any more of it.

Yes, don't trust the finance industry. Your pension payments are what pays for Porsche's and helicopters on front lawns.

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The title should read 'half of UK not putting into a pension scheme'

Slightly different.

<<edit the title came from the beeb >>

Edited by slurms mackenzie

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Indeed, I am not paying into a pension. Always thought they were a waste of time.

I put into a savings account, which is also a waste of time. :(

At least I have access to what I have not got.

If your employer pays in you might as well have it.If not,or for real saving equity ISAs,.When you want an income roll them into bonds within the ISA wrapper (no tax),and if needed withdraw some capital over say 15 years.

Then when it runs out youl be old and knackered anyway.

At that point State pension+Second state pension and a small employers pension should be quite enough.

Most average workers only need savings of around 130k to make a decent pension when adding in the2 state pensions.Thats if we still have them of course.

£300 a week pension is pretty easy to get.Its getting enough to retire early thats hard.

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Land. At the right time. Because they ain't making any more of it.

That's right, sod being productive, use a unaddressable monopoly to force others to pay you in order to remain productive.

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That's right, sod being productive, use a unaddressable monopoly to force others to pay you in order to remain productive.

Until private pension schemes change so they can't take 5% a year in fees and the finance industry is actually trustworthy, long term what else is there?

Look at the tables starting page 12.

Stocks, bonds??? I don't know.

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