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Record Numbers To Turn 65 In 2011... But Baby Boomers Face Bleak Financial Future, Experts Warn

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http://www.dailymail.co.uk/news/article-1343166/Record-numbers-turn-65-2011--But-baby-boomers-face-bleak-financial-future-experts-warn.html

Wow, there has been a real deluge of 'broke boomers' articles today, no doubt looking for sympathy after the splurge of the last 20 odd years! BBC1/News24 even had a 10minute piece at 0910 today about how the housing market is no longer benefiting the boomers as they can't sell their over priced houses, but the general consensus was that the boomers have been lucky.

Anyway, the DM article says ...

A typical 65-year-old has savings of £21,000, a relatively modest amount ....

Is this serious? At the same time that they’re slagging off the young for being work shy when they can't afford a typical FTB deposit of £35k and then not to mention the fact that new students will face debts of between 30k and 50k, they themselves have only been able to save up an average of £21k over a whole LIFETIME!

If this is true, it makes me sick how ill prepared this generation of leeches really are. Time for less 'keeping up with the Jones' and more downsizing!!

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Bailout for the boomers needed. The govt clearly should borrow more money against our children and give them a nest egg they have failed to achieve for themselves.

Keeping up with the Joneses isn't cheap and then their was all the hard earned holidays. When you consider the increased living costs it's not surprising they've been unable to save.

Bail out the boomers.

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Which really highlights how it's not the 'boomers' per se.

It's the skimming, scumming, scamming rich landowners, banksters and their bag men.

Everyone else is 'poor', the degree of poverty being relative. Forcing 18 yr olds into £tens of thousands of debt at majority isn't financing 65 yr olds with £21,000 lifetime leftovers, it's financing the top 2% and above - a sort of 'asset protection schem' for the rich.

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Basically if the elders are so screwed then what's it going to be like for the youngsters when THEY retire? (i.e. me!)

This HPC had better happen....

How many of you are contracted OUT of SERPS? How much extra a month do you get from it? I don't trust the government, would rather have the money given back as wages (is that possible?)

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http://www.dailymail.co.uk/news/article-1343166/Record-numbers-turn-65-2011--But-baby-boomers-face-bleak-financial-future-experts-warn.html

Wow, there has been a real deluge of 'broke boomers' articles today, no doubt looking for sympathy after the splurge of the last 20 odd years! BBC1/News24 even had a 10minute piece at 0910 today about how the housing market is no longer benefiting the boomers as they can't sell their over priced houses, but the general consensus was that the boomers have been lucky.

Anyway, the DM article says ...

Is this serious? At the same time that they’re slagging off the young for being work shy when they can't afford a typical FTB deposit of £35k and then not to mention the fact that new students will face debts of between 30k and 50k, they themselves have only been able to save up an average of £21k over a whole LIFETIME!

If this is true, it makes me sick how ill prepared this generation of leeches really are. Time for less 'keeping up with the Jones' and more downsizing!!

Also, over 50% of SMI recipients are over 65.

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http://www.dailymail.co.uk/news/article-1343166/Record-numbers-turn-65-2011--But-baby-boomers-face-bleak-financial-future-experts-warn.html

Wow, there has been a real deluge of 'broke boomers' articles today, no doubt looking for sympathy after the splurge of the last 20 odd years! BBC1/News24 even had a 10minute piece at 0910 today about how the housing market is no longer benefiting the boomers as they can't sell their over priced houses, but the general consensus was that the boomers have been lucky.

Anyway, the DM article says ...

Is this serious? At the same time that they’re slagging off the young for being work shy when they can't afford a typical FTB deposit of £35k and then not to mention the fact that new students will face debts of between 30k and 50k, they themselves have only been able to save up an average of £21k over a whole LIFETIME!

If this is true, it makes me sick how ill prepared this generation of leeches really are. Time for less 'keeping up with the Jones' and more downsizing!!

Where's the problem?

If you have neither rent nor mortgage to worry about then the state pension is ample. If you had substantial savings, it's no doubt become your children's leg up onto the housing ladder by the time you reach 65.

Where do pension pots feature in this? No point in keeping non-pension (taxed) savings if your lifetime's big purchase is behind you.

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Basically if the elders are so screwed then what's it going to be like for the youngsters when THEY retire? (i.e. me!)

This HPC had better happen....

How many of you are contracted OUT of SERPS? How much extra a month do you get from it? I don't trust the government, would rather have the money given back as wages (is that possible?)

To be honest if I had the option of getting my employers contribution to my pension I'd rather manage the fund myself.

Surely this should be an option for everyone, so you could avoid the thieves skimming 40% off your pension.

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Basically if the elders are so screwed then what's it going to be like for the youngsters when THEY retire? (i.e. me!)

This HPC had better happen....

If you're under about 40 then demographics are on your side (as it is for today's older-than-boomer pensioners), so you can look forward to a better pension than anyone retiring over the next 25 years.

The worst age to be from a pension PoV is tail-end of the bulge - mid to late 40s. Unless you were a victim of an bust scheme (equitable), in which case what matters (apart from any compensation) is how long you have to retirement.

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Where's the problem?

If you have neither rent nor mortgage to worry about then the state pension is ample. If you had substantial savings, it's no doubt become your children's leg up onto the housing ladder by the time you reach 65.

Where do pension pots feature in this? No point in keeping non-pension (taxed) savings if your lifetime's big purchase is behind you.

Savings are used for buying cars etc. Plus house repairs too. I've seen old peoples houses become delapidated because they didn't keep them up.

Anyway, it's all a fuss over nothing. I think my house is worth £500,000, so I'll sell that.

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It's mostly because once the kids leave home they start living it up. Have you seen the price of Warner Hotels?

The minute they can take 4-5 weeks holiday a year they do. And it costs money.

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Which really highlights how it's not the 'boomers' per se.

It's the skimming, scumming, scamming rich landowners, banksters and their bag men.

Everyone else is 'poor', the degree of poverty being relative. Forcing 18 yr olds into £tens of thousands of debt at majority isn't financing 65 yr olds with £21,000 lifetime leftovers, it's financing the top 2% and above - a sort of 'asset protection schem' for the rich.

Hehe. Agree with most of that. Except, some rich folks assets have been seriously clobbered.

The good news is that not all of the assets being favoured by post-2008 nonsense are limited to the rich. You can buy real-economy assets on sensible terms for a few hundred quid, or £50/month, and put yourself on the right side of money-printing. It was pre-2008 credit that really favoured the rich and made it inevitable that bad money should drive out good.

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I'm not begrudging anyone taking 4-5 weeks holiday, provided they can afford it! At the end of the day, people retire to enjoy their final years, but if they haven’t saved then they haven’t a leg to stand on!

We all know a lot of people from all generations have been living beyond there means, but there comes a time and a place were you have to think about the future and save something. It seems clear that a lot of boomers haven't done this!

Someone raised a Question about SERPS, personally I contract out. There is no point in giving the government even more money; especially as the chances of them means testing the extra benefit once I retire really is quite high! I think it worked out that an extra £1300 a year goes into my pension fund, where I can then manage the funds as I wish!

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Is this serious? At the same time that they’re slagging off the young for being work shy when they can't afford a typical FTB deposit of £35k and then not to mention the fact that new students will face debts of between 30k and 50k, they themselves have only been able to save up an average of £21k over a whole LIFETIME!

This doesn't surprise me in the least.

The average person is more likely to have credit card debts of £21k than savings of £21k. For the average person on average earnings living an average lifestyle significant saving is not really an option - you are lucky if you can just make ends meet.

Most people I know who have 'savings' have nothing of the sort. They may have had an inheritance or have the proceeds of a house sale sitting in the bank, but this is hardly 'savings'.

Very many people face retirement with only the state pension and associated benefits awaiting them. However, for most this shouldn't be too much of a problem. If the house is bought and paid for, you don't need to run a car, and you are not fussed about fancy holidays, living is pretty cheap.

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This doesn't surprise me in the least.

The average person is more likely to have credit card debts of £21k than savings of £21k. For the average person on average earnings living an average lifestyle significant saving is not really an option - you are lucky if you can just make ends meet.

Most people I know who have 'savings' have nothing of the sort. They may have had an inheritance or have the proceeds of a house sale sitting in the bank, but this is hardly 'savings'.

Very many people face retirement with only the state pension and associated benefits awaiting them. However, for most this shouldn't be too much of a problem. If the house is bought and paid for, you don't need to run a car, and you are not fussed about fancy holidays, living is pretty cheap.

Well spotted.

Thinking of the old mean vs median debate, I hat to think how bad it REALLY is. Bet there a a v. small amount with lots of savings that masks how poor many pensioners are.

Nice to see a breakdown of the figures as deciles or whatever.

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I'm not begrudging anyone taking 4-5 weeks holiday, provided they can afford it! At the end of the day, people retire to enjoy their final years, but if they haven’t saved then they haven’t a leg to stand on!

We all know a lot of people from all generations have been living beyond there means, but there comes a time and a place were you have to think about the future and save something. It seems clear that a lot of boomers haven't done this!

Someone raised a Question about SERPS, personally I contract out. There is no point in giving the government even more money; especially as the chances of them means testing the extra benefit once I retire really is quite high! I think it worked out that an extra £1300 a year goes into my pension fund, where I can then manage the funds as I wish!

Hmm, an extra £1300!? That's a LOT... so I can divert this to my company pension fund, huh.... (I assume yours is a SIPP then?)

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This doesn't surprise me in the least.

The average person is more likely to have credit card debts of £21k than savings of £21k. For the average person on average earnings living an average lifestyle significant saving is not really an option - you are lucky if you can just make ends meet.

Most people I know who have 'savings' have nothing of the sort. They may have had an inheritance or have the proceeds of a house sale sitting in the bank, but this is hardly 'savings'.

Very many people face retirement with only the state pension and associated benefits awaiting them. However, for most this shouldn't be too much of a problem. If the house is bought and paid for, you don't need to run a car, and you are not fussed about fancy holidays, living is pretty cheap.

When I start paying a mortgage off, I certainly wont be saving much at all....

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Hmm, an extra £1300!? That's a LOT... so I can divert this to my company pension fund, huh.... (I assume yours is a SIPP then?)

Erm, not 100% sure on the terminology, however I have a pension fund through AXA. My company pays in 6% of my base, and I also pay in 6% of base. Every year the government then credit my account with the money from contracting out, as I said I think that was about £1300. It's probably worth speaking to your HR dept of pension advisor.

Once I finally have a mortgage, I will keep my savings levels at a certain amount and then over pay the mortgage, however I hope to pay if off early so I can continue saving for old age and enjoy life!

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Once I finally have a mortgage, I will keep my savings levels at a certain amount and then over pay the mortgage, however I hope to pay if off early so I can continue saving for old age and enjoy life!

How do you deal with the conuundrum of inflation?

My uncle received his pension today.... its £75... a month. The amount he paid in the purchasing power then vs now is a universe apart!

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Someone raised a Question about SERPS, personally I contract out. There is no point in giving the government even more money; especially as the chances of them means testing the extra benefit once I retire really is quite high! I think it worked out that an extra £1300 a year goes into my pension fund, where I can then manage the funds as I wish!

I contracted out of SERPS for a few years and then contracted back in again as the SERPS scheme was supposed to be better. I wish I'd stayed contracted out, as the few years I was contracted out added about £50K to my private pension pot which I cashed in for an annuity three years ago. I doubt the SERPS addition to my state pension, which I can't draw for another six years, will amount to £50k and I was contracted in for a lot longer than I was contracted out.

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Bailout for the boomers needed. The govt clearly should borrow more money against our children and give them a nest egg they have failed to achieve for themselves.

Keeping up with the Joneses isn't cheap and then their was all the hard earned holidays. When you consider the increased living costs it's not surprising they've been unable to save.

Bail out the boomers.

blimey, they clearly need at least 3 foreign holidays a year from now on to help deal mentally with the financial difficulty they are facing.

Perhaps they could mortgage their own children to pay for this?

oh..they have...

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http://www.dailymail...perts-warn.html

Wow, there has been a real deluge of 'broke boomers' articles today, no doubt looking for sympathy after the splurge of the last 20 odd years! BBC1/News24 even had a 10minute piece at 0910 today about how the housing market is no longer benefiting the boomers as they can't sell their over priced houses, but the general consensus was that the boomers have been lucky.

Anyway, the DM article says ...

Is this serious? At the same time that they're slagging off the young for being work shy when they can't afford a typical FTB deposit of £35k and then not to mention the fact that new students will face debts of between 30k and 50k, they themselves have only been able to save up an average of £21k over a whole LIFETIME!

If this is true, it makes me sick how ill prepared this generation of leeches really are. Time for less 'keeping up with the Jones' and more downsizing!!

It's pathetic and in my view they should be left to starve.

I've just had to right a cheque to the Tax man for £4k due to PAYE corrections during job changes, but that is dwarfed by the £45k I've had to pay the barstewards. And that doesn't include VAT!!!

You have to ask WTF do they do with all this money? Do I get a couple of "Thank You for adopting a Chav Family" certificate enlcosed with a picture of Dwayne and Lorna from Preston resplendent on their Sofa watching daytime TV surrounded by their brood of 7 chavlets!!!!!!!!!!!!!

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I've just had to right a cheque to the Tax man for £4k due to PAYE corrections during job changes, but that is dwarfed by the £45k I've had to pay the barstewards. And that doesn't include VAT!!!

Diddums :P

You're missing a trick there. Get yourself a redundancy package and the taxman is suddenly a whole lot more generous :D .

[edit to add] my main payment arrived yesterday - end 2010 on a rich note. Taxman has taken about £7k, against about £30k if it had been earned income.

Edited by porca misèria

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This figure is a bit of an anomaly as it is the people born in the immediate post war baby boom in 1947-8 who retire this year and next.

The total will adjust down over the next few years and not rise again significantly until 2020-2025 when the bulk of post war British baby boomers retire (most British baby boomers are in their 40s and early 50s not their 60's as is the case in the USA - ie different country different demographics).

http://www.statistics.gov.uk/cci/nugget.asp?id=6

6.gif

Edited by realcrookswearsuits

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  • 312 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% +
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      • up 5%



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