WikiWirral Share a Little Learn a Lot about your Wirral
Forum Statistics
Posts1,014,994
Topics74,905
Members12,909
Forums66
Posts in last 24hrs27
Most Online7,831
Apr 8th, 2013
Who's Online Now
58 registered members (alan128, 10 invisible), 1,185 guests, and337 spiders.
Key: Admin, Global Mod, Mod
Social Media : Follow Us


Popular Topics(Views 7days)
231 Stabbing
New General Forums
Hero or Villain?
by casper. 19th Mar 2019 12:16pm
Exchange rate
by casper. 14th Mar 2019 10:14am
Pound at a Two Year High
by diggingdeeper. 14th Mar 2019 2:43am
Another Travesty of Justice
by diggingdeeper. 8th Mar 2019 11:24am
New Wirral History
Manifolds, Wilsons. Meacocks & Barnes - 1820s
by bliplandy. 20th Mar 2019 6:18am
Wirral Street??
by gerrymoore. 16th Mar 2019 2:58pm
WW2 USNavy large sheepskin trousers
by Bultaco. 15th Mar 2019 8:48am
Where is/was this Station Hotel
by derekdwc. 13th Mar 2019 11:44am
Grove Hotel, Wallasey
by diggingdeeper. 9th Mar 2019 9:01pm
Forum Tips
Photo Gallery Forums
WW1 Monument, Birkenhead
No more bridge, never be the same
Topic Replies
Manifolds, Wilsons. Meacocks & Barnes - 1820s
by bert1. 20th Mar 2019 6:48am
Best Place for A True Story
by diggingdeeper. 19th Mar 2019 9:05pm
1970's Murder in Central Park, Wallasey
by Csones. 19th Mar 2019 6:40pm
Amazon £5 Off Today
by diggingdeeper. 19th Mar 2019 6:25pm
New Council Tax bill 2019
by keef666. 19th Mar 2019 10:55am
Handbag Found in New Brighton
by daveybm. 19th Mar 2019 8:46am
143 Mersey Arms Hotel
by diggingdeeper. 18th Mar 2019 10:06pm
Egremont Ferry to Be Destroyed
by diggingdeeper. 18th Mar 2019 5:20pm
Looking for a Gym buddy (Total Fitness Prenton)
by Colt743. 18th Mar 2019 4:25pm
March
M T W T F S S
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Recent Posts : What's On ?
Wirral History Fair
by missmahjong. 12th Mar 2019 3:07pm
RAF Tornado Farewell Flypast Tour
by diggingdeeper. 28th Feb 2019 10:14am
Previous Topic
Next Topic
Print Topic
Rate Topic
Page 1 of 3 1 2 3
Pensions #836320
11th Nov 2013 12:48pm
11th Nov 2013 12:48pm
Joined: Oct 2008
Posts: 5,080
Birkenhead
derekdwc Online content OP
Forum Veteran
derekdwc  Online Content OP
Forum Veteran
Joined: Oct 2008
Posts: 5,080
Birkenhead
Many people rely on state benefits when they are older (housing benefit, council tax benefit, state benefit, etc). Is it worthwhile for these people who had low salaries (£12K - £17K per year ) to have private pensions?

Are private pensions worthwhile for low earners, I think they are only worthwhile for high earners like doctors, solicitors, etc?


Most people’s retirements are funded from two main sources - the state pension and their own private pension.

Both systems are undergoing big changes but the fundamentals remain the same.

The state pension guarantees a retirement income for those who reach a certain age.

Private or company pensions vary in value according to how much money workers and their employers have saved into them, and how their investments perform.

State pension

Pension payments from the government are changing in two significant ways at the moment.

Firstly, the age at which people become entitled to weekly state pension payments is rising, because of increasing life expectancy in the UK.

Until 2010, men recieved the state pension at 65 and women at 60.

Plans drawn up a few years ago meant that women’s state pension age was scheduled to increase from 60 to 65 – in line with men’s – between 2010 and 2020.

But a slight change means that both men’s and women’s state pension age will hit 66 by the end of this decade.

The government has now announced that the state pension age for everyone will probably rise to 67 by 2028.

Means-testing

And ministers have also indicated that they may link further pension age rises to longevity data.

The second change concerns the money people are entitled to.

Under the current system, most people get a fixed weekly pension - worth just over £107 in 2012-13.

Those who do not have other sources of income, such as a private pension, can claim top-up pension credit payments.

But these means-tested top-ups are being abolished, and a single, more generous flat-rate pension – worth about £140 a week at today’s prices – is being introduced, perhaps within two or three years.

Individuals will need to have worked - and paid national insurance contributions - for 30 years or more to be eligible for the full amount.

What the new universal pension means is that those with low-value pension savings will have an incentive to put more cash aside.

The current means-testing system means that many people with small pension pots find that they would have been better off saving nothing and claiming pension credit.

Private pensions

Changes to private pensions over the past decade or so have largely been for the worse.

This is due primarily to increasing life expectancy – which means that pension savings have to last longer, and therefore generate a lower monthly income – and a tough economic climate.

Stock markets – where the lion’s share of pension assets are invested – are not performing as well as previously expected.

And low interest rates mean that the annuities used to turn pension savings into a regular income are paying out less than they used to.

Unfortunately, individuals do not have a great deal of control over these factors.

So the only real solution to these problems is for savers to put more money into their pensions during their working lives.

Start saving earlier

The earlier you can start paying into a pension, the better, as your money will have longer to grow.

If you employer offers to pay pension contributions as long as you do, that is a further incentive to start saving.

From October 2012, the government is rolling out a programme of automatic pension-scheme enrolment for employees in private-sector firms.

Workers can opt out of this if they wish, but for thousands of people, it will be a great opportunity to start a pension with the minimum of hassle.

Auto-enrolment pensions will cost 4 per cent of the worker’s salary - the employer will add 3 per cent, and tax relief a further 1 per cent.

My view is
The government needs people to invest more money in private pensions so the pension companies can invest your money in government bonds (this then becomes part of the National Debt) which we have to pay for again by austerity measures.
I was under the impression that State Pensions of those retired now were originally paid for by the national insurance contributions of the previous generation of workers and those still working and future working generations ( the more people that worked in decent paying jobs the bigger the pension pot)
Unfortunately now there is a dearth of such jobs - 40 hours etc and now they have to find the money for pensions elsewhere.

Last edited by derekdwc; 11th Nov 2013 12:49pm.
Google Ads
Re: Pensions [Re: derekdwc] #836343
11th Nov 2013 2:12pm
11th Nov 2013 2:12pm
Joined: Feb 2013
Posts: 475
Wirral
Candlyfloss Offline
Smartchild
Candlyfloss  Offline
Smartchild
Joined: Feb 2013
Posts: 475
Wirral
Good thread,What about the ones who have hardly worked in there entire lives,Are they still entitled to the goverment paying them a pension when they havent contributed any national insurance or any taxes?

Last edited by Candlyfloss; 11th Nov 2013 2:16pm.
Re: Pensions [Re: derekdwc] #836361
11th Nov 2013 3:04pm
11th Nov 2013 3:04pm
Joined: Oct 2008
Posts: 5,080
Birkenhead
derekdwc Online content OP
Forum Veteran
derekdwc  Online Content OP
Forum Veteran
Joined: Oct 2008
Posts: 5,080
Birkenhead
Originally Posted by derekdwc
Many people rely on state benefits when they are older (housing benefit, council tax benefit, state benefit, etc). Is it worthwhile for these people who had low salaries (£12K - £17K per year ) to have private pensions?

Are private pensions worthwhile for low earners, I think they are only worthwhile for high earners like doctors, solicitors, etc?



40 hours(if you're lucky) at National Minimum Wage £6.31 over age 21
= 40 hours x 52 weeks x £6.31 = £13,124.8

I would like to see governments publishing wage bands starting with how many people earn between £0 to £5,000 and going up by £5.000s up to £50,000 instead of just saying the average UK wage is £26,500 (in the year to April 2012.)

Last edited by derekdwc; 11th Nov 2013 3:13pm.
Re: Pensions [Re: derekdwc] #836373
11th Nov 2013 4:00pm
11th Nov 2013 4:00pm
Joined: Jul 2011
Posts: 1,331
Wirral
Moonstar Online content

Forum Addict
Moonstar  Online Content

Forum Addict
Joined: Jul 2011
Posts: 1,331
Wirral
I don't understand why, if people are having to work more years, why did they cut the State pension entitlement down to a working life of 30 years from 40 years?

The latest State pensions do not include older pensioners who remain on a lower pension who had to have 40 years contributions - why?

Re: Pensions [Re: derekdwc] #836379
11th Nov 2013 4:19pm
11th Nov 2013 4:19pm
Joined: Jun 2012
Posts: 6,635
wirral
M
missmahjong Offline
Wiki Guide
missmahjong  Offline
Wiki Guide
M
Joined: Jun 2012
Posts: 6,635
wirral
Derek, i have worked all my life, will be getting my pension in 2 years time, i find it very 'annoying ' that i will pay a lot of tax because i intent to carry on working , eg 1 weeks wages will be spend on TAX ,also have had a small pension for the last 8 years, which will be taken into consideration as well....
Candyfloss, change the record.......it.s getting BORING same old.....

Re: Pensions [Re: missmahjong] #836457
11th Nov 2013 9:19pm
11th Nov 2013 9:19pm
Joined: Feb 2013
Posts: 475
Wirral
Candlyfloss Offline
Smartchild
Candlyfloss  Offline
Smartchild
Joined: Feb 2013
Posts: 475
Wirral
Originally Posted by missmahjong
Derek, i have worked all my life, will be getting my pension in 2 years time, i find it very 'annoying ' that i will pay a lot of tax because i intent to carry on working , eg 1 weeks wages will be spend on TAX ,also have had a small pension for the last 8 years, which will be taken into consideration as well....
Candyfloss, change the record.......it.s getting BORING same old.....
Am simply asking a question and on topic.you give it a rest haha.

Re: Pensions [Re: derekdwc] #836491
11th Nov 2013 10:07pm
11th Nov 2013 10:07pm
Joined: Jun 2012
Posts: 6,635
wirral
M
missmahjong Offline
Wiki Guide
missmahjong  Offline
Wiki Guide
M
Joined: Jun 2012
Posts: 6,635
wirral
Same question, on various threads....... On topic but soooo BORING.... your doing your best to 'needle' someone ... i rest my case .....Pxxx Oxx

Re: Pensions [Re: missmahjong] #836494
11th Nov 2013 10:12pm
11th Nov 2013 10:12pm
Joined: Feb 2013
Posts: 475
Wirral
Candlyfloss Offline
Smartchild
Candlyfloss  Offline
Smartchild
Joined: Feb 2013
Posts: 475
Wirral
Originally Posted by missmahjong
Same question, on various threads....... On topic but soooo BORING.... your doing your best to 'needle' someone ... i rest my case .....Pxxx Oxx
Bottom line miss,If you dont like what you read dont reply ,Simple as that.I rest mine, So back on topic if you dont mind.

Re: Pensions [Re: Candlyfloss] #836519
11th Nov 2013 11:52pm
11th Nov 2013 11:52pm
Joined: Oct 2007
Posts: 4,868
shropshire
chriskay Offline
Forum Veteran
chriskay  Offline
Forum Veteran
Joined: Oct 2007
Posts: 4,868
shropshire
Originally Posted by Candlyfloss
Good thread,What about the ones who have hardly worked in there entire lives,Are they still entitled to the goverment paying them a pension when they havent contributed any national insurance or any taxes?

In order to qualify for the state pension you need to have worked and paid contributions (or have credits) for 30 years. If you don't qualify under this, you will probably get some sort of benefit (totally unjustified in my opinion).


Carpe diem.
Re: Pensions [Re: chriskay] #836521
12th Nov 2013 7:02am
12th Nov 2013 7:02am
Joined: Nov 2008
Posts: 8,068
tranmere
B
bert1 Offline

Wiki Veteran
bert1  Offline

Wiki Veteran
B
Joined: Nov 2008
Posts: 8,068
tranmere
What would be justified?
Poor law, Workhouses or perhaps the development of Brazilian and Indian style shanty towns and throw them all in there to get on with it.
Perhaps we should spend Billions on space travel in a hope some other country sends us aid.


God help us,
Come yourself,
Don't send Jesus,
This is no place for children.


Bertieone.
Re: Pensions [Re: derekdwc] #836556
12th Nov 2013 11:25am
12th Nov 2013 11:25am
Joined: Dec 2008
Posts: 5,430
Birkenhead
BandyCoot Offline

Forum Veteran
BandyCoot  Offline

Forum Veteran
Joined: Dec 2008
Posts: 5,430
Birkenhead
Why should bone idleness be rewarded? I worked Bert as you well know but can't claim anything, nor do I want to need to, but those who haven't done a tap are brought up to my level by all the freebies they get handed on a plate and which they never mention when telling the world what a pittance they are picking up, otherwise how can they go shopping, come back with bags full of goodies and do it by TAXI? Just an observation I've made. I pay tax on my second occupational pension, just as a sweetener.


Birkenhead........ God's own Room 101.
Re: Pensions [Re: derekdwc] #836560
12th Nov 2013 12:02pm
12th Nov 2013 12:02pm
Joined: Oct 2008
Posts: 5,080
Birkenhead
derekdwc Online content OP
Forum Veteran
derekdwc  Online Content OP
Forum Veteran
Joined: Oct 2008
Posts: 5,080
Birkenhead
I could agree with you BandyCoot if there were the jobs about (particularly in Birkenhead and Wallasey) that were full time (40 hours) and a decent wage for those that are fit enough to work.
Just think of all the big employers from the 50s/60s that have gone from this area and been replaced by zero hour,part time staff, tax avoidance/evasion companies that have replaced them.
(I'm not sure how those workers with few hours are affected over receiving state pensions )

By the way I also pay income tax and am on a state pension and count myself lucky enough to do this without claiming any benefits

It's all about creating as much personal wealth as you can by any means you can. Those who have the money invest, buy shares, lend it at high rates, avoid paying taxes and sit back and count how much they've made that year.

Yes we're all in this together. I'm struggling to live on my millions the same as those on their zero hour contracts and those damn shirkers

Last edited by derekdwc; 12th Nov 2013 12:14pm.
Re: Pensions [Re: derekdwc] #836563
12th Nov 2013 12:54pm
12th Nov 2013 12:54pm
Joined: Nov 2008
Posts: 8,068
tranmere
B
bert1 Offline

Wiki Veteran
bert1  Offline

Wiki Veteran
B
Joined: Nov 2008
Posts: 8,068
tranmere
A point that's overlooked is this,

If there was 2.5million job vacancies and only a small percentage of able bodied unemployed, there might be justification in labelling some shirkers, but that's not the case. I hope its accepted that the vast majority of unemployed are not shirkers, if you accept that, why are they not gainfully employed, obviously no jobs. How do we deflect from unemployment and the failure to provide jobs, call them all shirkers.


God help us,
Come yourself,
Don't send Jesus,
This is no place for children.


Bertieone.
Re: Pensions [Re: derekdwc] #836567
12th Nov 2013 1:29pm
12th Nov 2013 1:29pm
Joined: Jun 2011
Posts: 16,227
Wirral
granny Offline
Wiki Master
granny  Offline
Wiki Master
Joined: Jun 2011
Posts: 16,227
Wirral
If we are talking about pensions, unless things change in the foreseable future, I wouldn't bother taking out a private pension again, unless one did so from an early age.
My situation of never claiming benefits, juggling 3 part time jobs at times and not at that point being able to afford payments into a private pension fund, due to bringing up 3 children o my own. Now leads me to the situation of having less than £100 per month additional private pension ontop of my state pension. My utility bills are likely to be over third of my income in the next 12months. I am unable to get a new boiler as I do not qualify for pension credits or any benefit, unable to have cavity wall insulation, as my property is too old. Unable to have the free solar panels, now on offer, as my south facing roof has only 7 tiles deep instead of the 9 deep needed and again will not qualify for the outside lagging of properties.
So as all those on pension credits and benefits of other types are in a safe haven, what is likely to happen to those who thought they were doing their best ? Most of whom are at home during the days, not in a cosy warm working environment, do they starve or freeze ?
No, don't pay into a private pension fund unless you start young enough to reap the rewards.
Not complaining, just allowing the men to see that women with children who worked for the 'good of', seem to have been failed, miserably.


Humankind has not woven the web of life. We are but one thread within it. Whatever we do to the web, we do to ourselves. All things are bound together. All things connect.
~Chief Seattle
Re: Pensions [Re: derekdwc] #836570
12th Nov 2013 2:26pm
12th Nov 2013 2:26pm
Joined: Sep 2013
Posts: 452
birkenhead
dustymclean Offline
Smartchild
dustymclean  Offline
Smartchild
Joined: Sep 2013
Posts: 452
birkenhead
The Introduction of a minimum qualifying rule for a state pension is seven years.
It is estimated half of pensioners could have an offset applied to the single tier pension by around 2050. they will receive less than the flat rate pension.
As an example consider someone who reaches state pension age retiring with a state pension worth £177.60 a week. If this person was contracted out of SERPS between 1978 and 1997 and accrued a guaranteed minimum pension of £40 a week which their scheme will pay- they will receive £137.60 a week directly from the state pension.
(I have a COD of £77 per week).
A state pension for the 21st century. DWP 2007

Page 1 of 3 1 2 3

Moderated by  Mod 

Random Wirral Images

Click to View Topic.
Newest Topics
Manifolds, Wilsons. Meacocks & Barnes - 1820s
by bliplandy. 20th Mar 2019 6:18am
Amazon £5 Off Today
by diggingdeeper. 19th Mar 2019 6:25pm
Handbag Found in New Brighton
by daveybm. 19th Mar 2019 8:46am
Best Place for A True Story
by granny. 18th Mar 2019 7:35pm
New Council Tax bill 2019
by keef666. 18th Mar 2019 11:13am
For Sale & Free
125cc scooter
by vw_kyle. 12th Mar 2019 8:13am
KTM Mancina Action 272 27.5 Inch Electric Mountain
by ianyam. 10th Mar 2019 12:04pm
Cambridge hifi Amplifiers for sale - from £40
by montyz. 8th Mar 2019 11:36am
Pair of bedside cabinets
by gerrymoore. 5th Mar 2019 8:37am
Food blender
by madrob. 3rd Mar 2019 6:28pm
Member Spotlight
TheComputerLab
TheComputerLab
Wallasey
Posts: 1,282
Joined: May 2011
Show All Member Profiles 
Newest Members
Bandurra, Me1978, crsinbeb, Bultaco, Windows
12909 Registered Users
Today's Birthdays
No Birthdays
New Wirral Info
Amazon £5 Off Today
by diggingdeeper. 19th Mar 2019 6:25pm
Best Place for A True Story
by granny. 18th Mar 2019 7:35pm
New Council Tax bill 2019
by keef666. 18th Mar 2019 11:13am
Roofer recommendation please?
by Gold_Moon. 15th Mar 2019 4:09pm
Phone calls
by casper. 11th Mar 2019 6:43pm
News : New Topics
Handbag Found in New Brighton
by daveybm. 19th Mar 2019 8:46am
Handbag Found in New Brighton
by daveybm. 18th Mar 2019 9:43am
Giant rabbit startles motorist.
by Excoriator. 17th Mar 2019 9:58am
Stabbing
by cools. 16th Mar 2019 9:38pm
Mosque Attack, New Zealand
by granny. 15th Mar 2019 8:09am
New Enthusiast Forums
DNS Not found Error.
by Windows. 14th Mar 2019 12:54pm
Bultaco pursang
by Bultaco. 13th Mar 2019 12:43pm
Hunting for a left hand drive smart car
by mike1965. 13th Mar 2019 11:23am
Small Journal Publishing.
by saltytom. 7th Mar 2019 6:07pm
Leaving Neverland
by granny. 7th Mar 2019 9:15am
Popular Topics(Views 24hrs)
Wirral Sunrise Sunset
Sunrise Wed 6:13am
Sunset Wed 6:25pm
Local Time Wed 10:12am
Powered by UBB.threads™ PHP Forum Software 7.6.1.1