Jump to content
House Price Crash Forum
Sign in to follow this  
cashinmattress

Unhappy Savers Made To Work Through 60S

Recommended Posts

Link

A powerful mix of under-investing and hikes to the state pension age will turn millions of careful savers into reluctant workers in their late 60s, researchers fear.

Rapid increases in the state pension age - which will see it rise to 66 by 2020 - were revealed by the Government last month.

It means that millions of Britons under the age of 56 will have to work longer before they can collect their state retirement benefits - currently £97.65 a week for single pensioners.

Even so, the average UK employee still sees the ideal retirement age as 62, a survey by Friends Provident has shown.

Yet very few Britons actually expect to have enough in their savings coffers to retire anywhere near that early.

Even the two-thirds of over 50s who have saved something specifically for retirement have begrudgingly come to accept that working deep into old age to fund their lifestyles is inevitable.

Fresh research by the National Association of Pension Funds shows that just one in three UK employees expects their pension to deliver sufficient income to support their retirement needs.

Poor performance in the stock markets over recent years, falling returns from annuities - the products purchased to convert a pension pot into an income - and the decline of generous final salary pensions are largely to blame, experts say.

Asked to predict the age at which they imagine being financially ready to retire, respondents to Friends Provident's survey said 67.

That stands in stark contrast to previous generations, where the majority of Britons were able to stop working in their early 60s and didn't rely on state handouts.

In 1984, the average male retirement age was 63.7 - below the state pension age of 65. By the time of the last official count in 2008, the average retirement age had risen to 64.6.

Trevor Matthews, chief executive of Friends Provident, says responsibility has been shoved decisively into individuals' hands when it comes to financing their 'golden years'.

The mantra is, if you want to retire earlier, you'll have to pay for it yourself.

Matthews says: 'It is crucial that we do this planning early enough in life whilst we have more options available to us rather than waiting until we reach our mid 60s when the only stark choices might be to keep working into our 70s or accept a lower than expected standard of living in retirement.'

The gloomy outlook has encouraged more older people to set up their own small businesses.

In a recent survey PRIME, a leading charity that assists 'olderpreneurs', found that 45% of those contacting it for help go on to launch a small business.

Just 15% of its clients give up on a planned new business venture twelve months after contacting the charity - a statistic that compares favourably with the 27% who gave up within a year back in 2006.

PRIME chief executive Laurie South says that with fewer conventional jobs available and more unemployed people competing for them, older people are being forced to find other ways of generating an income.

'There was a group of people, all over 50, all of whom had been made workless, but who said they had already started their self-employed business. PRIME has good reason to be proud of its impact.'

South also reiterated how important it is have patience and keep plugging away with a small business - something his charity aids with regular help.

'Small businesses rarely start with a big bang: they morph in. Their early movements are as jerky as a novice driver using a clutch for the very first time. Often the business has started with no help whatsoever and is struggling.'

Well, for most of them they can sell their house and live off the profit. Sheesh.

Enough with the cradle to grave boomer mentality.

Share this post


Link to post
Share on other sites

They don't need 2 Caribbean cruises every year. Or to redecorate and buy a new 3-piece suite to match every 5 years. The spoilt grand kids can do without extravagant presents every birthday and Xmas. They can shop in Asda instead of Waitrose, the savings over 20 years of retirement will be huge. They can use hot water bottles instead of central heating, like the good old days.

There you go, no need to work so hard now, happy times again.

Share this post


Link to post
Share on other sites

Come on plenty of 60 somethings and there abouts have worked bloody hard for not a lot, have put savings away and are getting pitiful interest. They have taken ( and paid for ) in most cases what they thought was professional advice about how to best provide for themselves, turns out they were being ripped off in a lot of cases.

Edited by bricor mortis

Share this post


Link to post
Share on other sites

Come on plenty of 60 somethings and there abouts have worked bloody hard for not a lot, have put savings away and are getting pitiful interest. They have taken ( and paid for ) in most cases what they thought was professional advice about how to best provide for themselves, turns out they were being ripped off in a lot of cases.

Hey I don't disagree with you, but to put your money into somebody else's hands (if you refer to pension schemes) and hoped you aren't going to be fleeced is very naive. Those who diversified and actually saved will do ok, despite inflation etc, outside of a complete state collapse. That ain't going to happen.

Simply, most of the countries unrealized 'wealth' is boxed up in the property of its citizens. That's the answer. Nobody should be living off of the state if they have a wad under their feet, especially those who gained advantage by being gifted ex-social housing.

For those that lived like the first little pig, in the straw house, well...

At the end of the day, we are going to have to live as bigger family units once again and start to look after our parents, else we will have a social apocalypse.

Edited by cashinmattress

Share this post


Link to post
Share on other sites

At the end of the day, we are going to have to live as bigger family units once again and start to look after our parents, else we will have a social apocalypse.

Right which leads to falling birth rates, which leads to less slaves to run the ponzi scheme which means state collaspe...

All roads appear to lead to state collaspe.

Share this post


Link to post
Share on other sites

They don't need 2 Caribbean cruises every year. Or to redecorate and buy a new 3-piece suite to match every 5 years. The spoilt grand kids can do without extravagant presents every birthday and Xmas. They can shop in Asda instead of Waitrose, the savings over 20 years of retirement will be huge. They can use hot water bottles instead of central heating, like the good old days.

There you go, no need to work so hard now, happy times again.

All boxes ticked several years ago in my case and from where I sit most of the 'financil midgets' in my age group have done the same. As with any age group some decide that they want jam today and fail to plan for their future. Only difference is that 30 years ago it was bingo and Benidorm, now it's ecstacy and Ibiza.

Share this post


Link to post
Share on other sites

They don't need 2 Caribbean cruises every year. Or to redecorate and buy a new 3-piece suite to match every 5 years. The spoilt grand kids can do without extravagant presents every birthday and Xmas. They can shop in Asda instead of Waitrose, the savings over 20 years of retirement will be huge. They can use hot water bottles instead of central heating, like the good old days.

There you go, no need to work so hard now, happy times again.

I think you should start a new thread spend now work later, or work now so you can live later. ;)

Share this post


Link to post
Share on other sites

Come on plenty of 60 somethings and there abouts have worked bloody hard for not a lot, have put savings away and are getting pitiful interest. They have taken ( and paid for ) in most cases what they thought was professional advice about how to best provide for themselves, turns out they were being ripped off in a lot of cases.

Very few have a private pension and if they do it/they will pay out very little...those who work outside the public sector, the self employed and those who work for small companies probably have no pension at all...the days of 2/3 final salary taken from age 50 are gone for many....I don't know what the answer is because like you say trust of financial advisers to give best advise (even if they knew what advise to give) is at an all time low...most only see property or cash savings as their security and look where that is leading. ;)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 140 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.