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guitarman001

Pension Crisis

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I was reading this book called 'The Pension Crisis' last night - basically an easy read about what you need to do to make your retirement ok.. actually it was pretty good for the layman compared to some others I've read. Anyway on one page it gave a required pension pot of nearly £0.5m in order to secure £20k per annum in old age. And then went on to say the usual 'public sector employees typically have a much better pension deal at the expense of the private sector'. So why bother working in the private sector? Professions such as the police still have final salary pensions (but for how much longer?) and we know the pay isn't that much worse in certain work sectors..

I found myself deeply questioning this last night - a pension is one of the most important things yet if you're in the private sector and not earning megabucks you are getting royally screwed in old age - and it will be a harsh reality when that time comes. Company contribution schemes are in effect a lottery based on investing lifetime, how the market performs and contributions (I'm contemplating bumping up my contributions, or at least putting some other money into an alternative vehicle such as an ISA when rates look decent again). How much longer can ANY final salary scheme survive? I find myself pretty angry at my choices at times - doing the right thing by going to uni and doing a useful job - but financially suffering for it in the long run.

To be honest I don't know what the conclusion is here or the overall point - I knew the reality long ago but it's always an eye-opener being exposed to the truth again.

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I was reading this book called 'The Pension Crisis' last night - basically an easy read about what you need to do to make your retirement ok.. actually it was pretty good for the layman compared to some others I've read. Anyway on one page it gave a required pension pot of nearly £0.5m in order to secure £20k per annum in old age. And then went on to say the usual 'public sector employees typically have a much better pension deal at the expense of the private sector'. So why bother working in the private sector? Professions such as the police still have final salary pensions (but for how much longer?) and we know the pay isn't that much worse in certain work sectors..

I found myself deeply questioning this last night - a pension is one of the most important things yet if you're in the private sector and not earning megabucks you are getting royally screwed in old age - and it will be a harsh reality when that time comes. Company contribution schemes are in effect a lottery based on investing lifetime, how the market performs and contributions (I'm contemplating bumping up my contributions, or at least putting some other money into an alternative vehicle such as an ISA when rates look decent again). How much longer can ANY final salary scheme survive? I find myself pretty angry at my choices at times - doing the right thing by going to uni and doing a useful job - but financially suffering for it in the long run.

To be honest I don't know what the conclusion is here or the overall point - I knew the reality long ago but it's always an eye-opener being exposed to the truth again.

No good will come of it.

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Yeah I am wondering......... maybe just put it into another 'vehicle'.

Honestly..... I can see why so many got into BTL after their pensions were shot at. Can't believe I'm saying that...

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Yeah I am wondering......... maybe just put it into another 'vehicle'.

Honestly..... I can see why so many got into BTL after their pensions were shot at. Can't believe I'm saying that...

What about a villa holiday home ? imo better than a btl.

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What about a villa holiday home ? imo better than a btl.

My sister has done that, and now has a half-million pound villa in a posh part of the Costa Brava.

I have my NHS pension, retired early in ill health after a stroke. I paid in at 7% for many years. However, I do think we should be stopping the civil service non-contributory pensions. But how????:ph34r:

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The thing about recieving a pension, is that the pensioner is not really consuming resources that were created when they were working. The pensioner is consuming resources that are being created right now by workers.

So looking at the general demographic and economic trends, there are fewer workers and they are being less productive. Therefore pensioners, as a whole, are stuffed.

Of course individuals can position themselves to do well, but at the expense of everyone else who will be poor.

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What about a villa holiday home ? imo better than a btl.

Like that idea...but not a villa per se, what about a small town house in an established community, something you could lock up and leave..good transport links and low overheads....somewhere with peace, openness, and fresh air a get away from it all. ;)

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Like that idea...but not a villa per se, what about a small town house in an established community, something you could lock up and leave..good transport links and low overheads....somewhere with peace, openness, and fresh air a get away from it all. ;)

The wife and I are looking to buy something in Maine (she is American). You can get a beautiful 4 bed 2 bath, by the sea for $150-200k.

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The wife and I are looking to buy something in Maine (she is American). You can get a beautiful 4 bed 2 bath, by the sea for $150-200k.

Bit too far away for me, not up to the long-haul flights...no was thinking more in france or Italy, maybe Spain...two bed max cosy nice wood burning stove, thick walls easy to clean and care for...location before size. ;)

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Bit too far away for me, not up to the long-haul flights...no was thinking more in france or Italy, maybe Spain...two bed max cosy nice wood burning stove, thick walls easy to clean and care for...location before size. ;)

The flight to Boston is 5 or 6 hours. Greece is 4 Canaries is 4, Malaga 3. So not too bad.

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The flight to Boston is 5 or 6 hours. Greece is 4 Canaries is 4, Malaga 3. So not too bad.

Not so much that, I would prefer the choice of being able to take a car or train or even a coach...Europe is more on the doorstep.

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Not so much that, I would prefer the choice of being able to take a car or  train or even a coach...Europe is more on the doorstep.

Ahh, I see. Well there's lots in France and Spain for around 100k euro.

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Ahh, I see. Well there's lots in France and Spain for around 100k euro.

Yes, have looked you can get something very nice for 70k to 100k euro local taxes are very low compared to the council taxes we pay...how come property is so high here in comparison, this in itself tells me property in the UK is well overpriced and a rebalance is long overdue....and nobody can say we have a better standard of living or quality of life, because we don't, nobody can say our economy is stronger, because it is not, the lack of land issue is a red herring....

The pensions paid to people everywhere will be smaller and paid later wherever we are...the largest living cost is housing costs a pension is not designed to pay housing costs so prices and rents will have to fall........no more money in the pot to subsidise pensioners housing costs as well as their medical costs.

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Yes, have looked you can get something very nice for 70k to 100k euro local taxes are very low compared to the council taxes we pay...how come property is so high here in comparison, this in itself tells me property in the UK is well overpriced and a rebalance is long overdue....and nobody can say we have a better standard of living or quality of life, because we don't, nobody can say our economy is stronger, because it is not, the lack of land issue is a red herring....

The pensions paid to people everywhere will be smaller and paid later wherever we are...the largest living cost is housing costs a pension is not designed to pay housing costs so prices and rents will have to fall........no more money in the pot to subsidise pensioners housing costs as well as their medical costs.

Lack of supply... blah..... not enough new houses.... blah... overcrowding....... etc etc etc

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Lack of supply... blah..... not enough new houses.... blah... overcrowding....... etc etc etc

:lol: if only that was true.....plenty of property nobody can afford to live in, or if they did they wouldn't want to pay the price. ;)

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My company match contributions to a certain level, so I contribute up to that level only. The rest of my money is in NS&I and lloyds vantage accounts. I would never put it all in the one basket.

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The thing about recieving a pension, is that the pensioner is not really consuming resources that were created when they were working. The pensioner is consuming resources that are being created right now by workers.

So looking at the general demographic and economic trends, there are fewer workers and they are being less productive. Therefore pensioners, as a whole, are stuffed.

Of course individuals can position themselves to do well, but at the expense of everyone else who will be poor.

Is this not the raison d'etre of much of the discussion on HPC? (At least on the main forum, not OT.)

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  • 149 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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