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

Uk Workers’ Low Savings Sparking Retirement Crisis

Recommended Posts

A FIFTH of Britons now suspect that they will never earn enough money to retire, more than in the US, Canada or Australia, according to a report released today by HSBC. With a squeeze in wages and inadequate savings for retirement, the UK performs poorly in terms of what people expect from life after work. A full 19 per cent of people who are not yet retired believe that they will never earn enough money to stop paid employment entirely. Even of those who are already retired, 39 per cent claim that they did not prepare enough or at all for a comfortable retirement while they were working. also tops the table for the number of people who are likely to live alone after they finish working: 36 per cent of people who are divorced or separated predict that they will work indefinitely, in comparison to only a fifth worldwide.

Until pension auto-enrolment kicked in, only a third of employees in the private sector were saving at all. Link

It's the side effects of QE and high inflation.

Edited by rollover

Share this post


Link to post
Share on other sites

So, they devalue the pound, making food and fuel more expensive in order to ensure that the cost of accommodation remains high, and then are surprised that people are finding it hard to save for retirement? Well, yes, I can see that that would be hard to figure out in advance...

Share this post


Link to post
Share on other sites

It's the side effects of QE and high inflation.

Well, you could also mention flatlining wages and the destruction of final salary schemes.

Pension industry still making decent profits and backstopping the gambles of the city boys, of course.

Share this post


Link to post
Share on other sites

Whats the point in saving for retirement

- the returns on the investment are vanishingly small so the pot at the end is smaller than it used to be

- because returns are small then the income when you take out an annuity are very small

- there was a chunk in You and Yours about pension a couple of weeks ago and they pointed to the number of people skimming out of a typical pension fund which was at least 13 but that figure may have been higher. Also they compared the Dutch system with ours and they have more social pension funds which pay out 50% more than an equivalent uk one.

- thanks to crash gordon , the treasury is taking a large slice out out of the fund when he started the raid on pension. He was also warned that it would cause a rise in btl and similar but as usual gordon knew best .

- the govts of various places have grabbed pension funds so people are safer looking after their own money

- of course the govt will give you tax credits or whatever if you dont have a pension . So if you are a mw worker then why waste your money , might as well enjoy the high life now and have a beer and fags down the pub now and let the gobt take care of you in your old(er) age

there is probably other stuff that I have forgotten

Share this post


Link to post
Share on other sites

Thank god property is the retirement fund, although it's something that should never be sold to actually fund retirement...

I don't think it's necessarily wrong for a person to buy a flat, let it out, pay the mortgage off over 25 years and then have it as a source of retirement income.

Share this post


Link to post
Share on other sites

Thank god property is the retirement fund, although it's something that should never be sold to actually fund retirement...

Why not? Sell the family home and use the money to rent. Let somebody else handle the maintenance. Doesn't sound like a bad idea to me.

Share this post


Link to post
Share on other sites

Thank god property is the retirement fund, although it's something that should never be sold to actually fund retirement...

Govt can still take your house. Gold, instead, you can bury it sumwhere safe.

Share this post


Link to post
Share on other sites

So, they devalue the pound, making food and fuel more expensive in order to ensure that the cost of accommodation remains high, and then are surprised that people are finding it hard to save for retirement? Well, yes, I can see that that would be hard to figure out in advance...

Only if you've never needed to earn a living.

Share this post


Link to post
Share on other sites

The Government is trying to stoke HPI, kick start the economy with funny money, etc. to this end the Press is full of articles about how property is booming, how BTL is the answer to poor interest rates and so on.

It makes sense as part of this strategy to trash saving or investing for your retirement, that way people have more cash available to buy overpriced property. Those who still 'stupidly' want to put something aside for the future, assuming they have the means to do so, are being told that property is the best/only way to fund your retirement. (I'm fairly certain if an IFA recommended a leveraged investment in shares as a viable alternative to cash savings they'd be struck off and sued, but it seems to be an okay practise if you're buying property.. weird??)

Personally I still save\invest for my retirement across multiple asset classes, in various Tax wrappers, e.g. ISA, SIPP, Company DC pension scheme. I try to spread the risk, don't panic if the market implodes, dripfeed into investments, buy when others panic, sell when the Press recommends a great investment idea, e.g. Buying Apple shares @$700, and forget about buying an annuity when I retire (income drawdown is my plan)

Sorry for the monologue, I'm just try to show that some people still plan for the future, regardless of the pitfalls and bad press

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   205 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

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.