Panicking about pension

[xxembobxx]

If you can get an NHS pension then I would say go for it - despite the recent changes it is still more generous than the private sector.
A pension is a gamble on the future really -you have to pay for care until you have £23k equity left and then it's free but there is talk of ringfencing owned properties as it's unfair a householder has struggled all their life to pay for the house and then it gets taken off them.

I do wonder whether pensions are worth it though - unless you can pay a lot into a pension pot then you will probably have to be subsidised with a state pension as well. £120k would probably only give you an income of less than £7k per year. And all those people who have never worked or paid into a pension get a state pension and therefore the same income as you!
I think pension contributions can be deducted from your income when being assessed for tax credits so check that out as it could mean the money you pay into a pension could be given back in tax credits.
There is a good forum on moneysavingexpert.com which deals with pension questions and is a good way to get expert advice for free although obviously you have no idea who is qualified or not.

 

[xxembobxx]

If you decided to sell your house you would probably find rent is more expensive and you don't have security to stay long term.
And pensioners usually have to pay rent unless they get pension credit!!

 

[hulahoop09]

Thanks hun! We would have 120k approx savings if we put mortgage payments into savings each month when mortgage is cleared for 20 yrs) before tax deductions plus my pension (approx 52k if i start when 30 and retire when 70) plus hubbys pension if/when he starts one plus our mortgage will be cleared and I read somewhere state pension isnt means tested so everyone gets it, obviously when im ancient it probably wont exist. Lol. 7k a year isnt much is it. Lol.

 

[Pearls18]

I'm going to sound really silly....but does everyone get a state pension? I thought everyone got the basic state pension and then any other pension plans you had were extra on top, I'm guessing I have been niave lol! So only if you don't have a certain level of pension you get a state one?

 

[hulahoop09]

You dont sound silly as I thought everyone got it also. Lol. Xx

 

[Mrs.S.]

I thought everyone got a state pension too...

 

[Mrs.S.]

I've just looked it up. everyone is entitled to the state pension as long as they've paid enough NI (30 years).

Thank god for that I was worried there!! x

 

[hulahoop09]

Phew. Lol. What happens if they havent? My dad was made redundant in his 30s and has been on disability or incapacity allowance since then as no one will employ him - he is almost 50. what happens to people like that? They have decided he is capable of work even though if anything his health is worse yet they said he cant go onto job seekers as he hasnt paid enough ni contributions or something. He has desperately tried to get work but NO ONE will even give him an interview! What happens when he hits pension age as he hasnt got savings, assests or a pension etc. xx

 

[Mrs.S.]

if he's been on benefits his NI should have been getting paid I'm sure. I know that you can pay them up voluntarily so he could check how much he's short and pay them. otherwise he would still fetal something but it would be at a reduced rate and them tipped up with pension credits etc (I think) he would be best looking into this though just to be on the safe side Xx

 

[hulahoop09]

Thanks. He is now 49 and I think was off work from early 30's I think it was. He is always broke as have struggled and has tried so hard to get a job!!!

xx

 

[xxembobxx]

Ooh I've just learnt something new!
I thought if you saved a private pension you didn't get a state pension but I must have got it confused with pension credit which is means tested.
I think the issue is when people have only managed to save for a small private pension and they end up worse off than those who receive pension credit as pension credit enables you to claim housing benefit.
Looks like the govt are really sorting the whole pension system out. Only 30 years working needed to claim a state pension and they're changing it so if you have saved for a private pension you won't be worse off than those who haven't.
No wonder they have pension experts - it's all a bit mind boggling!

 

[Pearls18]

There is talk though about how long we can sustain the state pension for due to our aging population and their not being enough working people to support the retired (one reason why retirement age increases) you often hear people saying to our generation you'll be lucky to have it...it's also not an awful amount to live on, so for these reasons I do not intend to rely on the state pension alone. You can be in retirement for over 30 years, I don't want to spend those years scrimping worrying about my heating bill, I want to be exploring the Med! I can dream lol. But yes I don't expect to retire at 60

 

[hulahoop09]

Lol. I expect to be working til at least 70! xx