The age pension

[joe-90]

Do you expect to get one? The pension has been means-tested in Oz for about 20 years. The testing was brought in by a Labour Government.

I'm in my early 50's but don't expect to get one. Well at least not one without strings attached. It's a mathmatical certainty that society will not be able to afford pensions in around 20 years from now. Too many pensioners and not enough workers to pay for them. The NHS? I see that being means-tested too. We simply cannot afford to keep our pensioners alive into their 80s and 90s providing pensions, health and the likes.
My guess is that I will be given a pension if I really need one - then the amount paid to me will be taken out of my estate in a similar manner to care in nursing homes.

Wadda you think?

 

[WoodYouLike]

Two options:
start paying more tax
start saving

 

[Diyisfun]

Thats why people are being encouraged to have there own pension.
Anyway by the time you qualify for your pension, what with global warming, road taxing, no NHS, who will give a S***

 

[joe-90]

But this is the crux of the whole matter. If you save and invest for your old age you'll get clobbered. If you sit around on benefits and pi$$ it all up the wall - you'll get a pension.

 

[WoodYouLike]

Well at least when having saved your self you have a clean concience.

 

[Diyisfun]

Joe, I saved most of my life ..then got divorced..That stopped the tax man.

 

[joe-90]

Isn't there something fundamentally wrong with a system that penalises those that are sensible with their money by saving during their working years, whereas someone that may earn even more in their working life but spends the lot on drink and holidays is then provided for in their dotage?

 

[Diyisfun]

Isn't there something fundamentally wrong with a system that penalises those that are sensible with their money by saving during their working years, whereas someone that may earn even more in their working life but spends the lot on drink and holidays is then provided for in their dotage?

I agree
They are elligible for anything & everything, also I beleive these same people tend to be those whose children do the same thing.

 

[WoodYouLike]

Sure it's wrong. We knew it would all end in tears in the end, we just kept llaking and moaning about how wrong it is, never took any real action.
We pay the price (or taxes)

 

[joe-90]

But the mathmatics are that our children/grandchildren will have to pay around 70% in tax to support us. We are spending like there is no tomorrow - which might explain why we will have no tomorrow. Isn't it time that governments looked past the next election to the next generation?

 

[masona]

Isn't it time that governments looked past the next election to the next generation?

I believe the Government is making plan & law to the employee in the future to contribute a private pension.

 

[drspock]

What do you reckon of this
I have heard that because of the success of these equity release schemes the government are considering taxing any money you take out of your property using this method
The thinking behind this is that elderly people currently in long term care are liable for the costs incurred if they have savings including property worth above £28k.
The local health authority can currently make you sell your house to pay the costs of long term nursing care, er, excluding Scotland for some reason or other.
Therefore the amount being withdrawn under these schemes means that with the interest there will be that much less the state will be able to claim back for long term nursing home care.
With the number of people who will require long term nursing home care increasing the government will have to find the money from somewhere.
I read a figure somewhere that the amount of money released under the schemes increased by 35% last year and nows stands at some £1.3 billion pa.
Another case for eat drink and be merry if this is correct.

 

[esra_ptrap]

I believe the Government is making plan & law to the employee in the future to contribute a private pension.

I'm sure this will make the 1000's who have contributed into poorly performing private schemes feel wonderful

In terms of our crumblies ... Get them to transfer ownership of ALL their assets to their dependents long before they'll need extended healthcare ... Don't forget, this isn't charity nor is it the young who are paying ... Their tax and NI throughout their working life have more than covered the assistance they need in old age.

It's not their fault (nor ours) that the Government hasn't made provision with the significant funds they receive ... Where do you think the £billions wasted on projects like the Millennium Dome actually comes from?

 

[rommy]

This goverment will think up all different ways to tax you.
What is the point in working hard,it use to be to buy a house,have a family.Go on holidays.Well ,Blair does not like that.Work harder,pay more tax.Have a nice house,which you work your guts for,pay more tax.
Have a car,pay more tax.Go on holiday,pay more taxHe and his team will come up with all different ways of taxing hard working decent people.
My mate was Labour to the core.What he said when Blair come to power.
Crime is going to be sorted out.Tony will come down hard on these criminals.The buses,trains are going to be sorted out,cheaper fares,safer.Oh yes and we was going to have a first rate health service.
10 years on ,well I tell you.Where my Mate lives, near a council estate in south east London,you don't go out at night unless you have a 9mm ozy and body armour.
Most of the shops have closen down through being robbed by either cars smashing through the windows or by arm robbers.

My mate have had his cars nicked,caught alight,vandalised by yobs.
He's been burgled loads of times.His house is like fort Knox otherwise he can't get house insurance.His car insurance has hit the roof as has his council tax.He can't sell his house because of the trouble.
The kids are breeding machines ,at least 4 kids by different fathers who don't work , sit in the local pub that he once used but does not use it now because of all the trouble.
He tore up his Labour membership card the other night.
I said "your paying more to live like this Bob"

 

[empip]

Here is a plan... If one has no business aspirations, no inheritance on the horizon and sfa pension. BUT hopefully long time owner occupier having a house 'standing one in' for say £300k.

Move to a smaller home say £150k in Euroland .. Place the residual £150k in high interest account (needs to be risk free, may be all there is !). .. Paying, say 4.3% net of 20% savings tax.
Draw this lot down, monthly, like a reversed mortgage... rough measure, but not far out. 0.043 x £150k = £6450 half of this is £3225 (being average int over the whole 15yr period).
Let us draw down the cap plus int over 15 yrs £150k + (£3225 x 15) = tot amount to draw of £198k, divide by 15 x 12 = 180 = £1100 per month. tax already paid. (The precise amount by calc is £1126 pm)

Ok it is finite .. but weigh up buying an annuity.. £150k

(1)
Male 55, Single Life Scottish Equitable Buys you £8577.00 gross pa TAXABLE. So a net of perhaps £6690 just £557.5 per month.. and when you've gone it is gone... No inflation built in.

(2)
Want RPI inflation protection? Lovely, now for £150k you only get £4,998 pa gross or £416 per month... Oops forgot the tax that'll be £324.92 per month net.

Rather the £1126 per month tax paid --- and have pulled £198k over the 15 yrs... as opposed to 180 x £557.5 = £100,350 for an initial £150k invested in the 1st instance above.
RPI not worth much is it? 15 yrs at 3% would see the monthly income increase to 1.03^15 x £416 x 0.78 = £505 net per month.

To all the above will be added (taxable) at today's OAP level the slowly withering state pension around £90 week gross, more for a couple double if they have both worked and claim their own pension
One person £90 x 4.33 = £390 pm being likely tax free in our little scenario here, personal allowance and all that.
My thought above would have one pulling £1516 per month.
Living in perhaps, Poland, quite well I would have thought probably buy a street of houses with the £150k housing residual !

I think the state pension will be left to wither on the vine of inflation, RPI isn't meant to reflect true living 'needs' ... more like the 'wants' ....
I am a little concerned that NL have constantly warned over any reliance on house value as a pension ... I am sure they have a master plan to scupper our best laid plans.
Anyway just be happy that our taxes will provide that 50% final salary pension plus tax free lump sum to the NHS'ers many taking at 55, even at 60 twill not be bad - £30 - 50k pa for doing nowt.. (We are banking on that ... just 3 more yrs) -
Jerzy and Kristina, get the old pierogi on the wood burner folks...