dunroving

Just as employed taxpayers have to subsidize the unemployed in our "socialist" society, I fully expect that within 20 years, those with seperate pension plans will be expectetd to subsidize the retirement of those who don't (by having their state pension means-tested/reduced).

As someone who has worked hard my whole life, spent cautiously and saved assiduously, that inevitability is something I strongly resent.

Sally Redux

Pensioners have become a very strong interest group politically.

The money will always be soaked from the same people, and it aint the fat cats.

MNandMN

My late mother-in-law saved her money her whole life, worked hard to pay off her home so she was mortgage free and never claimed a penny in benefits, but some of her acquaintances spent their money as soon as it hit their pocket and lived their retirement years not paying council tax or rent on their council house as they were deemed in need of help - life is never fair, those who save and look after themselves will always support those who don't.

Mallory

As long as there is a spouse or a disabled person in the home, you don't have to sell it. When there is only one left, then you have to sell it before you go in the home.

Sally Redux

Yes I was thinking that is the case.

BristolUK

That investment would make a difference just as much as the house would.

Of course, someone might find it a little harder to "hide" the investment, bank account etc than the house in which they lived.

I was about to post that. Except when you need to go into a home, waiting to sell up isn't practical, so you get time to sell up.

bromleygirl

So is it 140GBP/week regardless of how many years you have paid in then? I have paid in 17 of the 30 years so right now I expect to receive a percentage of the 140/week based on my contributions so far.

Sally Redux

The proposal appears to be that everyone will get the same amount, regardless of contributions.

SomersetGirl

Talk about timing....my husband and I have just this year made the final voluntary contribution for our 30 year maximum....hmmm.....should have spent the $$ on a trip instead!

dunroving

The whole moving of goalposts thing is very worrying. No wonder people don't feel encouraged to save for retirement when successive governments change the rules that determine whether you will need it or be penalised for it.

Bevm

Good point about temporary care. I'm not clear as to how that's funded.

Good point, too, about when one person needs to go permanently into care and their partner doesn't. It could be done by a reverse mortgage sort of thing, though, couldn't it? So half the value of the house goes to the care, but the remaining spouse doesn't have to leave the home or pay out anything until eventually the house is sold. Then the proceeds go to where they're "promised."

When my in-laws went into care, I think 30,000 pounds was protected. Is that right?

Bev

johnh009

The government have also been touting this buy back in payment for state pensions. Maybe they knew what was coming and wanted to maximise contributions? Also, there is much debate as to whether it would have been more benefical to put your money into a private scheme. This would depend on what scheme you choose, some of these have not done well recently due to the situation with the banks. As a general rule, I find it best to avoid any form of "partnership" or deal with the government. Like Dunroving says, too many moving goalposts.

I'll bet that because I will now get a full pension in the UK, they will tax my Canadian pension out of me, if I get it at all. Cynical to the end, no wonder.

And, realistically, the 140 GBp per week is not such a great deal, it merely brings us in line with the rest of Europe.

robin1234

Based on the current arrangements, the voluntary contributions are a very good investment indeed. The simplest comparison is with an immediate annuity (to use US terminology, I think in the UK it is called something different.) A male aged 65 would get about $700 a year for life if he bought a $10,000 immediate annuity (no survivor benefit, no guaranteed minimum term.) That is a worse return than UK voluntary contributions.

Last time I looked on their website, they were still quoting voluntary contributions... this new plan seems to be just a plan for the future as yet.

dunroving

Pound for pound money in vs. money out, just about any final salary pension scheme, and the UK state pension based on buyback years, outperforms just about any and every personal pension scheme. As Robin said, annuities (called the same here in UK) don't pay very much per year for a big chunk of money in.

windsong

Absolutely!