Wednesday, September 8, 2010

I know we’ve done this story already…

Too poor to retire: The over-55s with no pension, no savings, just massive debts

What happened to this Home-Owner-Ist rhetoric about the older generations having behaved responsibly and the young being blamed for everything?

Posted by mark wadsworth @ 11:27 AM (1603 views)
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10 thoughts on “I know we’ve done this story already…

  • Apparently many people are planning to use the equity in their house to fund their retirement. They are in for a shock – the amount you can release from a £150,000 house is only about £50,000 (assuming you still want to live in it then hand it over to the insurance company when you peg it). Not much to live on for 20-odd years is it?

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  • Illusionary wealth v the reality of debt.

    Will modern greece regain their ancient wisdom along with their lands and their ‘own’ pyramids.

    From home-owner-ism to country-owner-ism to global-owner-ism?

    I hear and feel a mighty tremor coming.

    “What happened to this Home-Owner-Ist rhetoric about the older generations having behaved responsibly and the young being blamed for everything?”

    As above, divide, then rule.

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  • sibley's b'stard child says:

    I’ve stopped paying into my final salary pension scheme because a) money’s tight enough already and b) i’m not convinced it will be worth other than a pittance by the time I retire (in circa 35-40 yrs time). I suspect that those retired already or due to retire soon will be the last lot to recieve a sustainable pension.

    Obviously, I have no data to substantiate this; but it is fact.

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  • tyrellcorporation says:

    You should have become a nurse at the age of 16!

    A friend of mine’s wife retires next year at the age of 55 with a £100k lump sum and £16k every year for the rest of her life. Her final salary was about £35k. She has a good chance of living to about 90 I guess so that’s 35 years of good living – a second life if you will.

    She bought her house for 2x their joint income back in 1978 and was paid off in the early 90’s (I’ve quizzed her about this in the past).

    What a life eh?

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  • sibley's b'stard child says:

    Likewise, my father is due to retire this winter at the ripe old age of 60. Worked for the public sector all his life (not a non-jobber I hasten to add; but as a lawyer). One hand, I can’t begrudge him the freedom (in all senses the word); on the other, I know that I won’t be afforded the same luxury.

    As you say, what a life.

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  • The lack of pensions provision for the majority who work in the private sector is an even bigger problem than the absurdly generous underfunded public sector pensions .

    The ratio of current and deferred reward needs to be changed so that something like 1/3rd of income is deducted at source .

    People will have to live on less up till retirement and obviously this will cause house prices to fall .

    It’s not going to be possible for the country to ignore the multiple pension problems for much longer .

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  • Its nothing short of a disgrace the inequality betweent he private and public sectors now. Better pay, shorter working hours, holidays coming out of their ears, flexi time, masses of sickness (usally taken) benefit and big lump sum payouts.

    We need a cull on a huge scale, early retirement (especially NHS, police and fire service) pensions, pay, holdiays, sickness benefits all should chopped. You can strike to your hearts content I doubt we’d notice much difference and before all those come back yes you would, no police, NHS, fire service, most of the time is spent sitting around so losing a third of them would make any difference.

    Grow some balls condem and can you make the entire public sector accountabile whilst you are at it, you know actually some chnace of losign a job if they mess up.

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  • ”Too poor to retire: The over-55s with no pension, no savings, just massive debts”

    This can’t be right. Everybody knows all those babyboomers are smugly sitting pretty and living it up, having shafted the younger generation for decades.

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  • tenyearstogetmymoneyback says:

    The situation is even more bleak for people over the age of 75, with 4 per cent still having a mortgage, with an average of nearly £100,000 outstanding.

    Sounds like a very good reason for banning interest only mortgages (as discussed in a later thread).
    Unless it is funded by a pension (something that my Mums Neighbour did) then why would any company
    offer a mortgage past retirement age ?

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  • 10 years – “why would any company offer a mortgage past retirement age ?” – Halifax were (still are) the main culprits of this and they do it because they are making good margin on the interest payments each month and have the property as security – you have to remember Andrew Hedley Hornby was from a retail background and the business was purely results driven. The fact that it eventually all went t*ts up is irrelevant and he’s now in a multi million pound role at Alliance Boots!

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