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The Generation Sleepwalking Into Old Age Poverty: Britain's Thirtysomethings Likely To End Up With A Pension Of Just £271 A Month

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The thing is, if this is true then everyone will be poor. Prices will have to come down as nobody will be able to afford a loaf of bread let alone a £500k studio flat in Peckham.

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Most people are banking on owning a house as their pension pot. If you assume you'll be sitting pretty on a £500k "asset" then a pension doesn't matter, in the minds of the masses.

Also, £271 a month barely pays utilities now. In 50 years time it will probably have a zero on it.

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The thing is, if this is true then everyone will be poor. Prices will have to come down as nobody will be able to afford a loaf of bread let alone a £500k studio flat in Peckham.

All in this together......apart from a few at the top, they will have their bunkers to save them.......what you have never had can never lose....strength in numbers. ;)

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Most people are banking on owning a house as their pension pot. If you assume you'll be sitting pretty on a £500k "asset" then a pension doesn't matter, in the minds of the masses.

Also, £271 a month barely pays utilities now. In 50 years time it will probably have a zero on it.

exactly

so many people assume that when they own their own house - that is it and they do not need much regular income for all the other costs :

council tax

utilities and water

insurances

living expenses

of course if you have a property portfolio you can always 'sell a house' to maintain the income .

but this is the daily mail - so cue 'sad faces' :(

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Serves them right for buying an iPhone...

At current levels (which of course may change), the State Pension is worth roughly £500 a month. Add in £271 from the enrolment scheme. Double that for a couple. Assume they have somehow managed to pay off a two-bed flat during their working life time and therefore have no accommodation costs in their retirement besides maintenance... That's a couple living off £1,550 a month without a rent or mortgage.

Put differently - had they been paying a mortgage of £700 a month and had £1,550 a month leftover, that's equivalent to a gross salary of £35k (which is something like the average household income today I believe?)

Also couldn't but help notice this in the article: Calculations for Money Mail by pension scheme Nest reveal that a 35-year-old worker, earning £26,000

Any Mail article showing how affordable house prices are certainly does not quote a 35 year-old worker as earning £26k!

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Not much choice for some people. No / badly paid / precarious jobs, no spare cash, can't afford to get a mortgage on a house. What are they supposed to do?

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. That's a couple living off £1,550 a month without a rent or mortgage.

Every week I have my mum cussing about how she can't get by on her 2,500 quid / month teacher's pension (which she claims she "paid in all her life" despite only working 27 years). I've left her "to rot" she's "destitute" etc etc.

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I will be working till I am dead, I often bring this point up with relatives who tell me what I should be doing. You are rare indeed if you can hold onto a well paying job for 30 years. You also have to choose between kids, mortgage or retirement unless your very lucky you cant have it all. I have yet to hold onto a job for longer than 4 years and I have been working near 20 years!

Personally I am convinced that as it goes tits they will make a grab for peoples pensions and savings as we have seen in other countries which is why I wouldn't be putting 500 a month into a pension only for it to be nicked. They already steal enough of my labour.

I am positioning myself not for retirement but to outlast the current paradigm I bet on UK bankruptcy and civil unrest long before i retire. Any pensions I have I do not count on having whn the time comes.

Invest in your health, fitness and well being because no amount of money can compensate for that when you get older. Would you rather be a poor fit and healthy 65 or a wealthy wreck at 65?

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Framed as if poverty is a lifestyle choice. The picture of a bunch of youngsters in a nightclub is a nice touch.

The generous pensions enjoyed by my parents and grandparents are closed to me. I contribute, but building a pension pot is hard when you've had 4 jobs in a decade.

Plus I'm still theoretically saving for A DEPOSIT. I need a house today before I need a pension tomorrow.

Though maybe I should just give up given that flats where I'd like to retire are apparently up 5% in the last quarter.

The house price steamroller is apparently unstoppable. It'll have crushed me long before I reach retirement age.

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Invest in your health, fitness and well being because no amount of money can compensate for that when you get older. Would you rather be a poor fit and healthy 65 or a wealthy wreck at 65?

Nah the wealthy pensioners appear to have that point of view covered too................

http://money.aol.co.uk/2015/02/04/people-with-bigger-pensions-live-longer/

Edited by crashmonitor

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I think there will be a state pension in 30 years - I just think how they pay it out and how they means test it etc.. will be different.

However shite this country is - I cant see any Government getting away with saying we are paying zero pension to anyone no matter what.

Its a mystery how it will all end up of course.

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It's £271/month more than I get now.

Dont you start whingin Mr Inheritence landlord scum !!! :D

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I think there will be a state pension in 30 years - I just think how they pay it out and how they means test it etc.. will be different.

However shite this country is - I cant see any Government getting away with saying we are paying zero pension to anyone no matter what.

Its a mystery how it will all end up of course.

I'm assuming the moving goal posts will just keep moving, 68, 70, 72, 75 years old etc. I think with hindsight all the fuss about the unfairness of the swift move from 60 in 2010 (women's and men's by default) will be seen as a bit indulgent and selfish.

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These stories have been coming out since the 80s...look at any newspaper archives to see how newspapers manipulate the public on everything based on how their advertisers pay them....think for yourself. Save for yourself and stop trusting the government to make it all ok....

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These stories have been coming out since the 80s...look at any newspaper archives to see how newspapers manipulate the public on everything based on how their advertisers pay them....think for yourself. Save for yourself and stop trusting the government to make it all ok....

In the seventies we were told everybody would be retiring at 50 and the retirement age would gradually reduce . Oh hang on some of them did.

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Wouldn't want the government to be unable to collect tax on your income, then tax you for saving for a pension (depending on your scheme), then tax you for withdrawing the money when you need it (and only being able to access it after 55). That would be terrible.

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In the seventies we were told everybody would be retiring at 50 and the retirement age would gradually reduce . Oh hang on some of them did.

Well thats what should have happened. But I guess globalisation put paid to that.

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Guest eight

Dont you start whingin Mr Inheritence landlord scum !!! :D

I have a development there.... check relevant thread later for details.

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I'm assuming the moving goal posts will just keep moving, 68, 70, 72, 75 years old etc. I think with hindsight all the fuss about the unfairness of the swift move from 60 in 2010 (women's and men's by default) will be seen as a bit indulgent and selfish.

Yes I agree thats the most likely result.

And hey - maybe we will all start dying younger as well and help things along that way. All in it together and all.

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I`ll retire at 66, I`m coming up to 56 now so I guess this wont change (?)

Only get the state pension as it seems to me that it`s not worth saving for another pension.....they`ll just reduce your state pension accordingly,

Should get around 150 quid....Wetherspoon`s here I come!!

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