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Uk Pension Gap Worst In Europe

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High cost of living, debt swilled economy, insane mortgages, crapped out pension system - the ultimate way of kicking the financial ball into the long grass.

http://www.heraldscotland.com/news/home-news/uk-pension-gap-worst-in-europe-1.1056712

UK pension gap worst in Europe

22 Sep 2010

Britain has the largest pensions gap in Europe and people need to put £10,300 a year more on average into their pension pot if they want to keep their current standard of living in retirement, new research claims.

The average pension gap – the difference between the income needed to live a comfortable retirement and the actual income individuals can expect from their current pensions – is also higher than in any other European country, according to the study by insurance giant Aviva and accountancy firm Deloitte.

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When you have big time industry you can cover a lot of pensions. Big time industrial plants can easily throw off a few tens of millions each to cover things like pensions. Ten millions pounds can cover 200 people making 50k a year in pensions each.

Otoh the coffee shops and realty offices and hairdressers cannot support a few pensioners each on lavish pensions. Actually most in the service industry are just trying to make ends meet themselves.

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Pension provider says "people need to put more money into pensions" shocker!

In other news, do bears sh1t in the woods? More on that story after the break.

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When you have big time industry you can cover a lot of pensions. Big time industrial plants can easily throw off a few tens of millions each to cover things like pensions. Ten millions pounds can cover 200 people making 50k a year in pensions each.

Otoh the coffee shops and realty offices and hairdressers cannot support a few pensioners each on lavish pensions. Actually most in the service industry are just trying to make ends meet themselves.

People don't have to rely on private pensions in Europe - they get good state pensions.

From 2007:

A study by consultancy firm Aon shows the state pays pensioners an income equivalent to just 17% of average earnings.

This is the lowest level in Europe and well below the average for all European Union countries of 57%. Even the Netherlands, which has the second-lowest level, provides a state pension nearly double the UK figure, the study shows.

The UK also has one of the highest retirement ages in Europe at an average of 62.2 years, with 57% of people aged between 55 and 65 still working.

This is also one of the reasons that renting is much more highly regarded in Europe than in the UK - you don't have to make sure you've bought somewhere decent to live before your income plummets on retirement.

Edit: punctuation

Edited by Snugglybear

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The future looks so bright.

The pension system is one huge ponzi scam.

The more I think about this, the more true I believe your words to be.

Young people should not be saving for a pension, unless they can be sure that they will be acquiring assets for themselves that cannot be appropriated by others before they retire. At the moment, few can do that. Current pensioners are able to obtain their bloated pensions by stealing the saved assets of others.

The quickest way for young people to bring this scam to an end, is not to save at all for their pensions. A bit of a paradox I know, but until people can save for themselves in the knowledge that their savings are not being stolen, they are just better off blowing what little they have.

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People don't have to rely on private pensions in Europe - they get good state pensions.

Mathematics and Demographics means that current good state pensions in Europe will have to end in their current form all too soon. Greece will lead the way.

Germany is doing the best thing to maintain levels of pensions, by reducing the numbers of those entitled by raising the retirement age.

As for the rest of Europe, best of luck in financing those pensions. Just try not to be in office when the Ponzi schemes that are state funded pension schemes, collapse. There are going to be a lot of angry old people shuffling in to town demanding bus passes.

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Mathematics and Demographics means that current good state pensions in Europe will have to end in their current form all too soon. Greece will lead the way.

.....

You're way too late. Several EU countries have reduced pension entitlements, the first IIRC was Latvia with a 10% reduction. Meanwhile the idiot government in the UK is increasing the spongers' hand out :(

Edited by non frog

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You're way too late. Several EU countries have reduced pension entitlements, the first IIRC was Latvia with a 10% reduction. Meanwhile the idiot government in the UK is increasing the spongers' hand out :(

non frog,

the maths of the situation means that payouts have to be reduced or ended. At the moment many are being reduced, the cuts will continue in one form or another until they match what is available from revenue. I dont know what all the nations of Europe have done. But I know that either they will have to reduce payouts sharply if they havent done so already.

Meanwhile, as you point out in the UK, in what was the most dimwitted government decision since Gordon Brown sold off our gold (I think we will soon find out just how catastrophic that decision was), we have index linked a growing handout to a portion of our society, that by definition, cannot contribute in anyway to the rest of society. They really have to rethink this policy, and rethink it soon. Pension payouts in aggregate, need to fall sharply. You can achieve that by cutting pensions, and increasing the retirement age. Both will be needed.

This will mean great hardship for many that reach old age. Trying to avoid that pain by cranking up benefits now, is only likely to lead to a state collapse, that will compound that hardship at a later date.

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It's catch 22.

Unless you itend to turn old peeople into soylent green, or allow them to sit around on the streets in their millions begging, you have to pay for their retirement somehow.

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It's catch 22.

Unless you itend to turn old peeople into soylent green, or allow them to sit around on the streets in their millions begging, you have to pay for their retirement somehow.

Encourage them to take up dangerous sports like speed skiing and base jumping

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Encourage them to take up dangerous sports like speed skiing and base jumping

Anyone in the UK who wishes to start drawing on a pension should at least be forced to climb the North Face of K2 to weed out the unworthy and spongers

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It's catch 22.

Unless you itend to turn old peeople into soylent green, or allow them to sit around on the streets in their millions begging, you have to pay for their retirement somehow.

We need young-old people wiping old-old peoples' bottoms in custom built granny workhouses.

This is how we can fund our retirement.

It is a stinking ponzi - but it will work.

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It's catch 22.

Unless you itend to turn old peeople into soylent green, or allow them to sit around on the streets in their millions begging, you have to pay for their retirement somehow.

Dont families look after their old in Japan, rather than expect govt handouts.

Here, barely a day goes by without R2 featuring a segment on carers demanding money for, er, helping out their parents, like people tended to do in the past.

Funny old world.

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