State Pensions

mileshawk56 · 4th August 2020, 18:52

According to the OECD the UK pensioners have the lowest rate in the developed world. UK -29%, OECD average 63%, EU - 71%, USA- 49%, China - 83%. This is the percentage of the last working wage. OECD = Organisation for Economic Cooperation and Development, And I expect they cost us a pretty penny. And when you look at the figures and reflect of the blood and treasure spent by which particular nations, not relevant perhaps but what about the Luftwaffe dropped a bomb on my Dads bike which was hurting no one in a Shed in Chatham dockyard and he never got any damages!! And it was a Sunbeam with an "oilbath chaincase and gold pinstriped and Sturmey 3speed. Chris.S.

coolguy · 4th August 2020, 20:45

Most if not all of the countries you mention are most likely to have contributions far higher for employees during their working life - UK has always reckoned on a state pension of about 30% of average wages, which is why when we had such wonderful company funded final salary schemes, the resultant pensions were limited to 2/3rds of salary. When I retired in 2003, there were 10 million employees in such arrangements, now it is less than 2 million, because the Government in the 1990s decided to tax dividends held by such Schemes, and Employers simply closed them as they became too expensive without the tax breaks.

baxlin · 5th August 2020, 05:02

Excellent post, DD, thank you. Public sector workers (and their unions, it has to be said) talk of generally lower salaries than the private sector, but not of their pensions.

However, even the unfunded Public Sector schemes have been revamped in recent years. I can’t remember the details as I’ve been retired from the financial world for several years, but such as accrual rates and retirement ages were changed. I know many NHS practitioners, when given the choice elected to remain on the 1995 scheme, despite any carrots to change.

And then of course there is the pension fund cap, initially at £1.5m, increasing to £1.8m, what is it now? £1m? Many higher earners, such as GPs, opted out of the scheme, and/or applied for one of the various Protections, to avoid the punitive taxation on any excess. Either that, or retired early, and look how that helps the NHS.

WillyHeckaslike · 7th August 2020, 13:57

It is an utter disgrace what the expenses fiddlers and the senior self-servants have done to the state pension since 1997. I'm not yet of state pension age but I took the advice of the DWP some years ago and paid their recommended voluntary contributions of several thousands of pounds to secure a full state pension. So job done and no more worries, or so I thought back then. I checked for a pension forecast earlier this year and I was stunned to be advised that all had been changed in 2016 for the worse and retrospectively so for me and many others - including many DWP staff.

Myself and many others would no longer qualify for the full state pension that we previously thought that we had secured. Years more of contributions would now have to be paid to get anywhere near the pension what the expenses fiddlers had previously sold us. Worse still, 2016 is being used as the cutoff for any qualifying years of voluntary contributions yet the expenses fiddlers are inviting me and no doubt many others to buy years before the cutoff date. How does that pan out, I asked the DWP. Do not under ANY circumstances buy any years that you're offered before 2016 was the advice. They will take your money and trouser it but it will not increase the value of you pension one iota. Only years bought after 2016 will be counted for that.

There was a time when changes to pensions were verboten when the effect was adverse and retrospective. There is no polite words to describe the antics of the expenses fiddlers over recent decades. It is theft and to steal people's pensions is appalling.

Borg Warner · 7th August 2020, 15:31

Should have put it into gold guys.

Kerching.

baxlin · 7th August 2020, 20:00

Quote:

Originally Posted by Borg Warner

Should have put it into gold guys.

Kerching.

With hindsight, maybe, but all eggs into any one basket isn’t a good idea, unless you have an infallible crystal ball.

I’m intrigued though, did you invest in gold?

Borg Warner · 7th August 2020, 20:59

Quote:

Originally Posted by baxlin

With hindsight, maybe, but all eggs into any one basket isn’t a good idea, unless you have an infallible crystal ball.

I’m intrigued though, did you invest in gold?

I did yes.

As for all of one's eggs, always best to have several baskets I find and be prepared to have one or two break.

4th August 2020, 18:52	#1
mileshawk56 Posted a thing or two MGZT Join Date: Jul 2015 Location: Berkshire Posts: 1,281 Thanks: 1,738 Thanked 299 Times in 216 Posts	State Pensions According to the OECD the UK pensioners have the lowest rate in the developed world. UK -29%, OECD average 63%, EU - 71%, USA- 49%, China - 83%. This is the percentage of the last working wage. OECD = Organisation for Economic Cooperation and Development, And I expect they cost us a pretty penny. And when you look at the figures and reflect of the blood and treasure spent by which particular nations, not relevant perhaps but what about the Luftwaffe dropped a bomb on my Dads bike which was hurting no one in a Shed in Chatham dockyard and he never got any damages!! And it was a Sunbeam with an "oilbath chaincase and gold pinstriped and Sturmey 3speed. Chris.S.

5th August 2020, 05:02	#3
baxlin This is my second home Volvo C70 Convertible and JZR 3 wheeler Join Date: Nov 2006 Location: Tring, Herts Posts: 3,960 Thanks: 124 Thanked 173 Times in 124 Posts	Excellent post, DD, thank you. Public sector workers (and their unions, it has to be said) talk of generally lower salaries than the private sector, but not of their pensions. However, even the unfunded Public Sector schemes have been revamped in recent years. I can’t remember the details as I’ve been retired from the financial world for several years, but such as accrual rates and retirement ages were changed. I know many NHS practitioners, when given the choice elected to remain on the 1995 scheme, despite any carrots to change. And then of course there is the pension fund cap, initially at £1.5m, increasing to £1.8m, what is it now? £1m? Many higher earners, such as GPs, opted out of the scheme, and/or applied for one of the various Protections, to avoid the punitive taxation on any excess. Either that, or retired early, and look how that helps the NHS. __________________ Only my opinion, obviously, so please don’t shoot me if it doesn’t match yours! Last edited by baxlin; 5th August 2020 at 05:06..

4th August 2020, 20:45	#2
coolguy Coolguy Rover 75 CDT Tourer Auto, Rover 75 2.0 Connoisseur Auto, MG ZT 2.5 Auto and MG ZT Cdti Auto (Monogra Join Date: Nov 2009 Location: Finedon Posts: 1,896 Thanks: 933 Thanked 638 Times in 430 Posts	Most if not all of the countries you mention are most likely to have contributions far higher for employees during their working life - UK has always reckoned on a state pension of about 30% of average wages, which is why when we had such wonderful company funded final salary schemes, the resultant pensions were limited to 2/3rds of salary. When I retired in 2003, there were 10 million employees in such arrangements, now it is less than 2 million, because the Government in the 1990s decided to tax dividends held by such Schemes, and Employers simply closed them as they became too expensive without the tax breaks.

7th August 2020, 13:57	#4
WillyHeckaslike This is my second home Rovers 75 & 25 Join Date: Oct 2010 Location: Wearside Posts: 4,520 Thanks: 543 Thanked 709 Times in 511 Posts	It is an utter disgrace what the expenses fiddlers and the senior self-servants have done to the state pension since 1997. I'm not yet of state pension age but I took the advice of the DWP some years ago and paid their recommended voluntary contributions of several thousands of pounds to secure a full state pension. So job done and no more worries, or so I thought back then. I checked for a pension forecast earlier this year and I was stunned to be advised that all had been changed in 2016 for the worse and retrospectively so for me and many others - including many DWP staff. Myself and many others would no longer qualify for the full state pension that we previously thought that we had secured. Years more of contributions would now have to be paid to get anywhere near the pension what the expenses fiddlers had previously sold us. Worse still, 2016 is being used as the cutoff for any qualifying years of voluntary contributions yet the expenses fiddlers are inviting me and no doubt many others to buy years before the cutoff date. How does that pan out, I asked the DWP. Do not under ANY circumstances buy any years that you're offered before 2016 was the advice. They will take your money and trouser it but it will not increase the value of you pension one iota. Only years bought after 2016 will be counted for that. There was a time when changes to pensions were verboten when the effect was adverse and retrospective. There is no polite words to describe the antics of the expenses fiddlers over recent decades. It is theft and to steal people's pensions is appalling.

7th August 2020, 15:31	#5
Borg Warner I really should get out more....... None Join Date: Feb 2010 Location: Suffolk Posts: 2,579 Thanks: 494 Thanked 657 Times in 402 Posts	Should have put it into gold guys. Kerching.