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[i]Although obviously that's compensating for 38 years of below private sector wages in the meantime.[/i]
http://www.bbc.co.uk/news/business-26512643
Anyway, the post wasn't about willy-waving of those with pensions (especially ones 'backed' by the taxpayer), but to draw all those folk with nothing to grime reality of probable negative pay rises (and staff cuts) over the next 3 years.
the post wasn't about willy-waving of those with pensions (especially ones 'backed' by the taxpayer),
I was responding to several posts that appear to be moaning about changes to the CS scheme - no longer final salary, no longer 1% contribution or whatever it was back in the day, etc. It's still a good deal for new entrants.
even if you paid 50% youd be better off in retirement.. my next door neighbour retired at 56 after 31 years now 89 hes been retired on an index linked final salary pension for 33 years.. plus his state pension he gets nearly 650 a week.. one of my customers draws an nhs pension of 5k a week.. cant wait till i m 68 for my state pension.. when i was 21 i had pe#is envy today its pension envy..
5k a week? £250,000 a year pension?
The pension rules mean we couldn't do that now but if they did I'd rather enjoy it now than in old age.
in a nutshell at 60 this method will give me a final salary equivalent pension
of 13445.
So you've saved £500,000 over your working life to get a pension of £13445 per year. You'd have to live to 97 to break even.
You've missed the fact that the pension increases each year in line with the RPI.
[i]You've missed the fact that the pension increases each year in line with the RPI. [/i]
Except they haven't included RPI/interest on the invested amount.
Yes. But the annuity is guaranteed to match inflation, the returns on the invested capital might or might not.
IMHO there are two reasons for getting an annuity, however I will be doing it later in my retirement, guessing about 75ish, as I think drawdown is better and annuity rates go up with age.
This is because:
- drawdown for me is a guaranteed loose (unless I top myself), if I don't die on the day the money runs out I will either leave money in the pot or have no pot - neither appeals but to be fair having money left sounds better, but irritating.
- I'm suspecting for me (*and most people) the older I get the less phsyically and mentally capable I'll be, so the idea of having an RPI linked pension (and again that might be a bad call - but again I don't know what inflation will do or how long I will live) will at least enable me to know that I have a guaranteed income till death. Again an annuity is irritating (as you give away your money) but I really don't see any other viable option.
Based on the only folk who posted already understand and have pensions - there's going to be a load of poor folk in the future; when the minimums kick in and again when they retire...
Based on the only folk who posted already understand and have pensions - there's going to be a load of poor folk in the future; when the minimums kick in and again when they retire...
There's going to be a load of poor folk now and in the future with or without this scheme!