State Pension

[roubaixtuesday]

Most working age people have higher housing costs than most pensioners, and many more working age people than pensioners are bringing up children, so naturally the amounts needed are higher, and when you start looking at what average household incomes are, the problem becomes starkly clear.

Jeremy Hunt is now looking at allowing young people to cash in pensions to use as a deposit for a house.
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I ride Brompton,Hetchins 531

The problem with all of these schemes is they are self defeating.

By making it easier to finance a house purchase, they simply push up the price of houses.

[Nearholmer]

Jeremy Hunt is now looking at allowing young people to cash in pensions to use as a deposit for a house.

Not-solving one huge problem, by un-solving another huge problem!

[Psamathe]

Most working age people have higher housing costs than most pensioners, and many more working age people than pensioners are bringing up children, so naturally the amounts needed are higher, and when you start looking at what average household incomes are, the problem becomes starkly clear.

Jeremy Hunt is now looking at allowing young people to cash in pensions to use as a deposit for a house.
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I ride Brompton,Hetchins 531

That'll build-up lots of big problems when those young people get to retirement age and don't have pensions. Contributions made, pots built when young have major impact on retirement income so cash in when still young and you lose massive benefits later. Of my various pensions other than New State Pension by far far far the most valuable is from my 1st 5 years of employment and is the only one I've bothered to actually start taking.

Ian

[briansnail]

By making it easier to finance a house purchase, they simply push up the price of houses.

I was listening to "More or less" T Hartford.He explained social housing rent as approx 50%.Then in 2010 The Lib/Dem coalition bought in a additional form of rent where rents went up to 80%.
He also explained that 300,000 units of housing stock historically has had to be destroyed due to age.This has not been replaced.

This is why a low pension is good.So long as the people who have to pay rent get a means tested increase.
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I ride Brompton,Hetchins 531

[Psamathe]

By making it easier to finance a house purchase, they simply push up the price of houses.

I was listening to "More or less" T Hartford.He explained social housing rent as approx 50%.Then in 2010 The Lib/Dem coalition bought in a additional form of rent where rents went up to 80%.
He also explained that 300,000 units of housing stock historically has had to be destroyed due to age.This has not been replaced.

This is why a low pension is good.So long as the people who have to pay rent get a means tested increase.
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I ride Brompton,Hetchins 531

You still completely ignoring the aspect that means testing dissuades people from making provision outside tested benefits. It was raised earlier and you ignored the discussion, yet raise your same point again. What you are doing is "soap-boxing" not discussing.

Ian

[axel_knutt]

Being as I reach retirement age this year, I decided to get a pension forecast. I registered a Government Gateway account a few years ago, but I've never managed to get past the security checks and log into it yet, it's like getting into Fort Knox. I had another go last week, but after passing one level of security check after another, I finally failed because I didn't know the name of the last online trader I opened an account with.

[Psamathe]

Being as I reach retirement age this year, I decided to get a pension forecast. I registered a Government Gateway account a few years ago, but I've never managed to get past the security checks and log into it yet, it's like getting into Fort Knox. I had another go last week, but after passing one level of security check after another, I finally failed because I didn't know the name of the last online trader I opened an account with.

You can telephone them. Look for links to "Future Pensions". Very helpful (I've called them a couple of times.

https://www.gov.uk/future-pension-centre (it's a Gov. Department, not a 3rd party company after stuff.

Before they can discuss your pension you'll need a pension forecast but they can "request that" (ie 1st call you get them to request one for you, 2nd call once you receive the forecast they can discuss things with you), you get it in the post then call them again and they have access to the forecast.

Ian

[axel_knutt]

You can telephone them. Look for links to "Future Pensions". Very helpful (I've called them a couple of times.

Last time I phoned them, the woman kept interrupting instead of listening to the question. Each time I tried to resume speaking she just shouted louder and louder and telling me that it was me who wasn't listening to her, and then after trying several times she just hung up.

[Psamathe]

You can telephone them. Look for links to "Future Pensions". Very helpful (I've called them a couple of times.

Last time I phoned them, the woman kept interrupting instead of listening to the question. Each time I tried to resume speaking she just shouted louder and louder and telling me that it was me who wasn't listening to her, and then after trying several times she just hung up.

I found them very helpful but all my calls were several years ago.

But it's a call centre so call back and you'll get somebody different. Pension is more important than being dissuaded by one unhelpful call centre operative.

Remember there is nothing they can do until the forecast has been done and all they can do is put in a request for one and the results take days/weeks. No way for them to check until forecast completed and no way for that to be done whjilst you are on the phone.

Ian

[axel_knutt]

Remember there is nothing they can do until the forecast has been done and all they can do is put in a request for one and the results take days/weeks. No way for them to check until forecast completed and no way for that to be done whjilst you are on the phone.

Last time it was a query about a rule change for Class III NI contributions, about 15 years ago AFAIR.

[briansnail]

You still completely ignoring the aspect that means testing dissuades people from making provision outside tested benefits.

The point you make is True.However bear in mind with inflation the cost of living a lot of people CANNOT make provision.They are not dissuaded. Its simply beyond their means.There was an article in the Telegraph re Resolute foundation plans.They pointed out in the pandemic many Malaysians took out their pension money in the pandemic.Now in old age many are destitute.

[rjb]

It's predicted that state pensions will soon become unsustainable forcing people to work longer for a lower pension provision unless they start saving now to fund a private pension.
"UK state pension ‘will have to be lower and paid later’ as system ‘can’t cope’, Britons warned" https://www.gbnews.com/money/state-pens ... lower-rate

[rualexander]

It's predicted that state pensions will soon become unsustainable forcing people to work longer for a lower pension provision unless they start saving now to fund a private pension.
"UK state pension ‘will have to be lower and paid later’ as system ‘can’t cope’, Britons warned" https://www.gbnews.com/money/state-pens ... lower-rate

Predicted and warned on GB News by the chief executive of an insurance company.

[axel_knutt]

"UK state pension ‘will have to be lower and paid later’ as system ‘can’t cope’, Britons warned"

Or alternatively, contributions increased. IMV it's private pensions that are the problem, because they're trying to fix a pay-as-you-go problem with a save-in-advance solution.

[rjb]

Heres an idea. The state offers an additional pension to be paid when the state pension is taken. It's money up front for the government to pay off it's debts and invest the surplus into gilts to fund the pension when due. Simples.