Having a financially comfortable retirement is the ideal.
But for many, on working class wages, does saving for retirement really pay off as much as it should?
I think one issue, in the UK at least, is that if you work hard to have a moderate pension, you are almost penalised. Certainly no better off.
For example, my 85 yo gran pays £550 a month for a small sheltered flat as she has a pension, a widows pension and previously owed a home. Her income is very modest. As was the house sale.
Many fellow residents pay no rent, and their income is boosted by pension credit, etc.
So effectively she is no better of than those that made no provision of their own.
Every pensioner deserves the basics, but perhaps working all your life needs to pay a little better for everyone.
Clearly everyone should make their own provision if they can, but I would like to see those that do see a little more benefit. Only seems fair.
Providing the bare minimum to avoid destitution is a sign of a civilised society. However, I would much rather take decision-making out of government hands. As by the time I get to state pension age I suspect the system will be totally different to what it is now due to the sheer number of older people which will outstrip those younger people paying taxation and ultimately, the welfare benefits.
We should support our older generation many of whom would have paid into the system through taxation and National Insurance contributions and probably being told that this was enough to have a comfortable retirement.
Previous Governments didn’t expect people to start living so long, nevertheless, saying that all 4 of my grandparents died in their early 60’s and 1 parent not reaching state pension age. Their premature deaths have meant 5 less people claiming state benefits which therefore benefits others who do reach pensionable age. (I just hope my genetics allow me to reach that age but I still got a long time to go)
It does feel like the system is unfair in if you work hard and save all your life, own a house. If you need care you have to sell it all to fund it but someone in the next room who has blown it all on maxed out credit cards and lived the life ends up in the same place
I agree…im far from suggestion people shouldn’t provide for themsleves.
My point is, for those on modest incomes with modest private pensions or investments, it should pay that little bit more.
Its the same with working age people on low incomes too…work should pay off…often benefits pay more.
The UK, in my opinion, promotes the idea of welfare dependency by providing a high level of benefits that effectively makes those on low to middle earnings no better off.
Keep the benefits, but provide more incentives to work.
Have you ever been on benefits? They are not generous. The stories peddled my the media that everyone is going out every night, takeaways, car, nice house paid for by the state, big TV etc do not reflect reality.
I have a friend who is single and on benefits, and they are terrified of how they will be able to get through winter, what with an increased rent (thanks to a landlord who has raised the rent in order to meet their own mortgage increase, and not covered by the benefits) and increased cost of utilities. In Summer they have just enough to get by, but there is no surplus to put by for Winter. Even with family’s help, they are in trouble. They see no way out of this.
A point regarding the modest income etc and retiring… what if you are disabled? What if you are poorly educated and cannot get a job that pays a decent salary? Do we want to create a tiered retirement, the poors can go in a scratty tower block while the better off can go retirement village?
I know we are all here to make money on our investments, but not everyone is as well placed as we are. Have a heart.
I have previously worked in benefits for 8 years in a managerial role…so I can assure you I have a good grip on the situation.
Some struggle…mostly single job seekers, as their entitlements are low.
Single people with multiple children, the disabled and pensioners all receive a very good level of support , which when added to housing benefit, and for many disabled people, a mobility car, puts them in a very decent position.
A single person with young children, for example, will be better off on benefits than working unless they earn something north of £50k a year…which for many isn’t achievable.
BUT, if you actually read my post its about making work pay, not reducing benefits.
Working is not rewarded in this country. I have worked and paid taxes but was shocked to find out that even prisoners get a free eye test at my expense while I have to fork out for these and really I am the one that needs it having worked hours in front of a computer monitor, this is just one simple example how the system is wrong
The law says employers must arrange an eye test for display screen equipment (DSE) users if they ask for one, and provide glasses if an employee needs them only for DSE use.
I’d guess prisoners have to ask for an eye test too, but then they don’t get to go home afterwards
Come up to Scotland, you get one free eye test every two years (more frequent for children and some medical conditions). Same for dental check-up every 6 months.
Westminster are taking your money and failing to give you a proper service for it. Granted I pay more tax up here, but it’s worth it for the extra we get.