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Retirement and pensions

...on serious topics that don't fit anywhere else at present.
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Alan H
Posts: 24037
Joined: July 3rd, 2007, 10:26 pm

Retirement and pensions

#1 Postby Alan H » April 6th, 2015, 12:36 pm

As some of near retirement (still five years away for me!), are people confident they will be OK in retirement? Will you be relying on the State Pension and little more? How's your works/private pension looking?

Don't give personal details here, of course, but just interested in the overall feeling as to whether people are dreading retirement or will be quite happy and looking forward to it? Does the State do enough to support those who have not been able to afford to contribute to a private pension? What does the future hold? Will you be cashing in a chunk of your pension (if it's the right kind of pension) as the Government allows you to do (as of today)?
Alan Henness

There are three fundamental questions for anyone advocating Brexit:

1. What, precisely, are the significant and tangible benefits of leaving the EU?
2. What damage to the UK and its citizens is an acceptable price to pay for those benefits?
3. Which ruling of the ECJ is most persuasive of the need to leave its jurisdiction?

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Dave B
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Re: Retirement and pensions

#2 Postby Dave B » April 6th, 2015, 1:00 pm

At the moment my pensions, company about equal to state, are more than I need.

But I cleared my mortgage when I was made redundant so do not have that around my neck! I had also taken every spare quid I had off the principle for five years before that.

I then put the lump sum from my company pension into a fixed term ISA paying about 4%. I also transfered my savings into another at the same rate. I even managed a third later.

When the first termed out and went to 0.5% I opened a Santander 123 account, that grosses 3% plus cashback for standing orders. I pay tax on that but, so far, it beats most ISAs and is always available.

Still have two 4% ISASs running.

All this on a disposable monthly income about 90% of when I was working last in 2004. Fuel bills tend to be higher of course but no driving to work and a car that runs on petrol fumes and costs £20 a year to tax.
"Look forward; yesterday was a lesson, if you did not learn from it you wasted it."
Me, 2015

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Fia
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Joined: July 6th, 2007, 8:29 pm

Re: Retirement and pensions

#3 Postby Fia » April 6th, 2015, 2:31 pm

I don't think I'll ever be able to afford to retire. At the age I am now, both my parents were retired. As they keep moving the state pension age up I'll currently be 67 before getting state pension (and I fully expect that age to go up yet again) For the last 15 years I've worked part time - far better life/work balance - and will have a very small pension from the LA scheme. I have some savings but not nearly enough to live from. Therefore I hope continuing Humanist Celebrancy will keep me comfortable in my dotage :D

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Tetenterre
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Re: Retirement and pensions

#4 Postby Tetenterre » April 7th, 2015, 9:17 am

I'm really looking forward to my part-time retirement!

I get my first state pension payment later this month :penguin: . I also had two tiny private pensions that I cashed in last year, and a small endowment mortgage that also matured last year. Tried to do things in the most tax-advantageous way (yes, this is tax avoidance! -- which of us does not avoid paying unnecessary taxes?), so I have some invested where, I am confident, it will eventually pay more than if I'd bought an annuity, some of it pays a small (and diminishing each year) monthly income, and I took the maximum lump sum that I could without incurring tax on it. Despite what that nice Mr Frogspawn said, the only Lambourghini I could afford would also have necessitated the purchase of a tow-truck, so I bought myself a decent telescope and a few ancillary bits and pieces instead.

What the state pension will allow me to do is be more choosy about what work I do. I don't think I'll ever be able to afford to retire completely, so the private tuition and writing, both of which I enjoy, will continue. I'm also going to have the time to do some serious study, so I'm soon going to be starting a couple of part-time university courses in high energy astrophysics.
Steve

Quantum Theory: The branch of science with which people who know absolutely sod all about quantum theory can explain anything.

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Nick
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Re: Retirement and pensions

#5 Postby Nick » April 7th, 2015, 1:53 pm

It is the complete collapse in annuities which has necessitated the change. For most, it will be beneficial. I'd like things to progress further, that contributions made to allegedly pay for ones pension, should actually be invested, with underlying government guarantees. This should, over a couple of generations, make pensioners richer and more secure. The chances of that happening are slim, though.

I am generally in favour of the moves being made by the present government to equalise pensions, so that savers are not penalised when they eventually come to draw their benefits. I would, however, make some small reforms: I would merge the winter fuel allowance into the OAP, so that it becomes taxable. The tax raised should go back into a general increase, so the overall benefits are tax-neutral, but more would go to the poorer pensioners.

I would also raise the age at which concessionary travel and such-like is given to the state pesnion age.

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Altfish
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Re: Retirement and pensions

#6 Postby Altfish » April 7th, 2015, 1:57 pm

Nick wrote:I would also raise the age at which concessionary travel and such-like is given to the state pesnion age.

Get lost - I'm 60 next month; I've been eagerly looking forward to cheaper travel.

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Nick
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Re: Retirement and pensions

#7 Postby Nick » April 7th, 2015, 1:59 pm

Altfish wrote:
Nick wrote:I would also raise the age at which concessionary travel and such-like is given to the state pesnion age.

Get lost - I'm 60 next month; I've been eagerly looking forward to cheaper travel.

Precisely! :laughter:

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Tetenterre
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Re: Retirement and pensions

#8 Postby Tetenterre » April 7th, 2015, 4:02 pm

Nick wrote:I would also raise the age at which concessionary travel and such-like is given to the state pesnion age.
I thought it was "state pension age for women" and that we persons-of-Y-chromosome got them at the same age so that HMG was not discriminatory.
Steve

Quantum Theory: The branch of science with which people who know absolutely sod all about quantum theory can explain anything.

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Dave B
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Re: Retirement and pensions

#9 Postby Dave B » April 7th, 2015, 5:03 pm

Tetenterre wrote:
Nick wrote:I would also raise the age at which concessionary travel and such-like is given to the state pesnion age.
I thought it was "state pension age for women" and that we persons-of-Y-chromosome got them at the same age so that HMG was not discriminatory.
But is not the pension age for women also going up?

Still, that should not affect those under the old regs. I will admit that I also thought giving it to men still at work was a bit rum.

As a side issue bus passes saved Oxfam lots, they previously paid the bus fares of volunteers, who were mostly pensioners.
"Look forward; yesterday was a lesson, if you did not learn from it you wasted it."
Me, 2015

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Fia
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Re: Retirement and pensions

#10 Postby Fia » April 7th, 2015, 5:20 pm

Dave B wrote:But is not the pension age for women also going up?

Yup, it's 62.5 for women currently. I don't know why .5 either :shrug:

Ron Webb
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Re: Retirement and pensions

#11 Postby Ron Webb » April 7th, 2015, 5:35 pm

I retired a few months ago (one of the reasons I have more time for this forum :smile: ), and my wife and I are enjoying it immensely. We've already been on two vacations and planning several others. As a matter of fact, we'll probably be touring Europe, including Britain, this summer or fall. (When is the best time to go?)

So yeah, we're doing well -- not exactly rich, but no complaints. Both of us have pensions from our employment, plus significant savings, investments, etc. My wife started her government pension (Canada Pension Plan) this year, but I'm waiting till next year. The longer you wait, the higher the monthly payment; and I received a hefty severance package at the beginning of this year so my taxable income will already be quite high.

Hey, what's this stuff Nick mentioned about "concessionary travel"? Do senior Brits get discounted air fares?

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animist
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Re: Retirement and pensions

#12 Postby animist » April 7th, 2015, 5:58 pm

Altfish wrote:
Nick wrote:I would also raise the age at which concessionary travel and such-like is given to the state pesnion age.

Get lost - I'm 60 next month; I've been eagerly looking forward to cheaper travel.
you should be OK on the HS2 by the time that's built :wink:

I am 68 and still working on a freelance basis; when that ends we will still manage, but I might be bored as well rather less well off. My wife was sensible enough to pay the single person's stamp even in the years she was not working, so she has a good state pension - worth noting by any younger woman reading this - plus which I have a reasonable occupational pension. But I probably should be following Dave and TT in looking for better ways to use whatever finance I have in order to generate more

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Fia
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Re: Retirement and pensions

#13 Postby Fia » April 8th, 2015, 12:17 pm

Ron Webb wrote: Hey, what's this stuff Nick mentioned about "concessionary travel"? Do senior Brits get discounted air fares?

Sadly, no Ron :) The concessions are for buses. Bus travel is free for over 60s in Scotland, think in England it's just cheaper?


Great article in the Grauniad yesterday:
Is Nicola Sturgeon right about retirement?
Who wants to have to work past 65 anyway? I’m 42 and I feel terrible. Women now look at my naked body in the same fearful way that pensioners look at snow. White, forbidding, and – let’s be honest – it’s probably going to break your pelvis. Surely after 65 you should be free to potter around your shed not seeing enough of your grandkids and wishing that your mates weren’t dead? Taking pointless cruises where getting dinner is like going to a China Buffet King on roller skates. Feeling good about what you’ve done with your life, because you can no longer remember it.

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Dave B
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Re: Retirement and pensions

#14 Postby Dave B » April 8th, 2015, 12:28 pm

Fia wrote:
Ron Webb wrote: Hey, what's this stuff Nick mentioned about "concessionary travel"? Do senior Brits get discounted air fares?

Sadly, no Ron :) The concessions are for buses. Bus travel is free for over 60s in Scotland, think in England it's just cheaper?

Bus travel is freefor over 60s in England as well. No concessions on long distance buses, Underground or trains.
"Look forward; yesterday was a lesson, if you did not learn from it you wasted it."
Me, 2015

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Tetenterre
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Re: Retirement and pensions

#15 Postby Tetenterre » April 8th, 2015, 12:57 pm

Dave B wrote:Bus travel is freefor over 60s in England as well. No concessions on long distance buses, Underground or trains.
Some of this is county-dependent, I think: I can use my bus pass for free travel on local buses anywhere in England between 9:30am (was 9am until All Fools Day) and 11pm Mon-Fri, all day at weekends. (Exception: if next bus is after 10:30am, can use pass from 9am).

We can also buy (£30/yr or £70/3yr) Senior Railcards that give 1/3 off most rail journeys, some buses, & some London Transport (see http://www.senior-railcard.co.uk/using- ... s-tickets/ for details of applicability). Some ferry companies (e.g. WightLink) also do concessionary fares for us oldies. There's also Plusbus: http://www.plusbus.info/

I think we don't do too badly. I use my free bus pass to do my weekly grocery shopping in Salisbury market, where prices are much cheaper than locally. Now, if I could just get free air fares to visit family in Scotland... :D
Steve

Quantum Theory: The branch of science with which people who know absolutely sod all about quantum theory can explain anything.

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Dave B
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Re: Retirement and pensions

#16 Postby Dave B » April 8th, 2015, 1:18 pm

Forgot the price reduction concs on rail and intercity buses, never had reason to use them! :redface:

I was thinking about free travel.
"Look forward; yesterday was a lesson, if you did not learn from it you wasted it."
Me, 2015

Ron Webb
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Joined: May 9th, 2009, 11:21 pm

Re: Retirement and pensions

#17 Postby Ron Webb » April 9th, 2015, 1:02 am

Fia wrote:Sadly, no Ron :) The concessions are for buses. Bus travel is free for over 60s in Scotland, think in England it's just cheaper?

Maybe it's a difference in dialect, but for me "travel" sounds like going to a different country, or at least a different city.

Yeah, IMHO local bus service should be free, period -- not just for seniors. The more people who leave their cars at home, the better.

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lewist
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Re: Retirement and pensions

#18 Postby lewist » April 9th, 2015, 8:41 am

I'm ok in retirement. I have my occupational pension plus a state pension that I wouldn't like to have to try and live on.

My Scottish Entitlement Card (bus pass) is wonderful. I can use the local buses including the wonderful Community bus that comes to the door for you and I can also do long distance travel within Scotland. That includes the Citylink Gold bus which is a non stop service to Glasgow (135 miles) complete with refreshments. I have a Pensioners' Railcard which I get with my Tesco points so effectively it's free. Take note of that one, folks! £14 worth of Tesco vouchers is all it takes.

I get Winter Fuel allowance which I gratefully accept. After all, I paid taxes all my working life so I could have a decent retirement and that's part of it. Our old age pension is fairly derisory compared with other countries and should be increased a lot, but when the big parties had rather spend our money on WMDs and Trains that only serve the south of the country next door, I don't see much chance of that.
Carpe diem. Savour every moment.

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animist
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Re: Retirement and pensions

#19 Postby animist » April 9th, 2015, 8:47 am

Ron Webb wrote:Yeah, IMHO local bus service should be free, period -- not just for seniors. The more people who leave their cars at home, the better.
that sounds a good idea to me, Ron

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Dave B
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Re: Retirement and pensions

#20 Postby Dave B » April 9th, 2015, 9:16 am

We would still end up paying for it via taxes, all tax payers would be affected whether they used pubklic transport or not - but I still like the idea carbon savingwise!
"Look forward; yesterday was a lesson, if you did not learn from it you wasted it."
Me, 2015


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