Your State Pension

[Beebo]

Blimey, and I used to shovel 15% of my salary into my pension.

It is a bit silly for people to think public sector pensions are free, but I work in the private sector and pay 8% with a further 5% from my employer, which will pay me less than a quarter of my current salary when it matures.
Like you, my Dad was a Chief Super Intendent in the Met, he retired at the age of 51 on a full index linked pension and hasnt had a day of paid employment since and is still a higher rate tax payer. When he finally received his state pension he didnt know what to do with it.
I would happily pay 15% if i was entitled to his pension benefits.

 

[marinyork]

I would happily pay 15% if i was entitled to his pension benefits.

My fellow worker from elsewhere in the company would pay 15% even if the employer contributed 9%. And that's on a crap defined contributions scheme. The employer only contributes 0.8% which will reach 3% in 2019. It was a bit of a shock to her going from 9% + 9% to 1% + 0.8%.

 

[screenman]

Blimey, and I used to shovel 15% of my salary into my pension.

Taking in mind £100,000 will buy me about £80 a week at 65, do you think you did well with your 15%. My brother did the same and reckons he got his payment in back in less than 5 years. Not one of the three pension I have that will pay back in less than 20 or there abouts.

I do not begrudge you your pension, you were promised it so you should have it, mind you I was promised a lot more by my private suppliers and it will not happen. Wrong career choice on my behalf.

 

[nickyboy]

It is a bit silly for people to think public sector pensions are free, but I work in the private sector and pay 8% with a further 5% from my employer, which will pay me less than a quarter of my current salary when it matures.
Like you, my Dad was a Chief Super Intendent in the Met, he retired at the age of 51 on a full index linked pension and hasnt had a day of paid employment since and is still a higher rate tax payer. When he finally received his state pension he didnt know what to do with it.
I would happily pay 15% if i was entitled to his pension benefits.

The actuarial cost of the police pension is, if I remember rightly, somewhere north of 30% of salary. The newer variants are lower than this. But the one your Dad was on would have required an employer contribution of more than 15% on top of his 15%. So for a private sector worker with an employer contributing say 5%, the employee would have to contribute more than 25% of salary to get the equivalent pension benefit

 

[screenman]

If the policeman pays into his pension how come it costs the tax payer, is this a myth given out by the wail?

 

[screenman]

[QUOTE 4566054, member: 9609"]Would you get as much as that if you opted for an indexed linked pension ? I was thinking a 100K pot would only get you £56 a week if you went for an indexed linked option.
So if you wanted a 15K indexed inked pension so as you could retire in comfort, then you would need a pot close to half a million, and that is not really achievable for anyone who needs to fund their own pension[/QUOTE]

Must admit I have no checked recently, but 56 a week is pretty safe for the sitting on the lump sum I would imagine. As for 1/2 million, easy it is only a lottery win.

 

[screenman]

Because most public sector pensions are paid for from current taxation income rather than some specific pension pot.

Does that mean they have not paid in enough for what they take out, most I talk to say they have paid in more than enough.

 

[nickyboy]

The police and armed forces pension schemes are somewhat anomalous though. They're not typical of public sector pensions.

That's interesting. Actually never having worked in the public sector I have no idea about the pension arrangements (other than the police; I have a friend who is a policeman and I remind him of his very attractive pension arrangements occasionally). For the everyday public sector employee....say the receptionist at the leisure centre, or the person I talk to about my self assessment, what sort of deal do they get? Is it more like a private sector def con or still def ben?

Not trying to make an argument, I genuinely don't know

 

[marzjennings]

I believe the current basic state pension is £119 a week. So that's 'enough to live on' is it?

God no, that's not enough to fund the travel plans the wife and I have for our retirement. Hence I've been chucking away as much as I can for our retirement and I've never planned on depending on the state pension for retirement.

 

[sbird]

[QUOTE 4564580, member: 9609"]The daft thing is I still get tax relief on my pension contributions (as I still pay in to a pension scheme)[/QUOTE]

Why is this daft? When you draw income from a pension scheme you may pay income tax (subject to the prevailing rules on how income tax is calculated at the time). The principle in play here is that we don't pay income tax twice. The fact that your current income is low enough to avoid an income tax liability today has nothing to do with the tax relief on your pension contributions.

 

[Smokin Joe]

£129 a week for me from next year, the joys of self employment. As I'll carry on working I suppose it will be a nice little bonus.

 

[screenman]

£129 a week for me from next year, the joys of self employment. As I'll carry on working I suppose it will be a nice little bonus.

£157 for me in in 5 year 4 months and 19 days time, I will also carry on working.

 

[nickyboy]

£155.65, or roughly half a pint less than @GrumpyGregry per week.

At £2.70 a pint it sounds like you'll be joining the other OAPs in 'spoons then?

 

[Deleted member 1258]

Is that not compulsory?

Not that I'm aware of.

 

[marknotgeorge]

£155.65, or roughly half a pint less than @GrumpyGregry per week.

Me too, but I suspect a fair bit after you. How come he gets more?