UK STATE PENSION the WORST in EUROPE? OECD Pensions at a Glance Report // UK Financial Planning

[@EdmundBaileyUK]

Thanks so much for watching! 👍 See you next time! 😊

[@Nickle314]

You are missing the biggies. 1. How big are the liabilities? Not in the accounts which makes it fraud. Based of ONS reports, the liabilities are 14 trillion. £600,000 per tax payer increasing at over 10% per year. 2. How big would the fund be if capitalism was choosen as the means to fund the pensions, rather than having the money redistributed. Answer over 25 Trillion. Enough money to generate 108% of tax. The problem Edmund is you and others ignore that

[@precociousdeathdealer202]

Edmund please let me know how will demographic collaspe in western world will affect pension. I'm 25 so I'm worried about contributing in state pension

[@Nickle314]

@@precociousdeathdealer202 The demographic issue is irrelevant. The issue is zero assets. All your contributions go to pay the debts. There are no assets. Turns out for every extra year in life expectancy, its a cut of about 5%. Basically you are screwed. Plan B, you save. THen what happens is the governments will look arround and say, you are hoarding wealth, and just take it. It's happened multiple times already, most cases in the EU. It's not as if migration will help. You need migrants who are net contributors, who pay more than 16,500 in a tax year per head, and even then they have to accept no pensions.

[@EdmundBaileyUK]

Thanks for the comment! In various ways but let’s take the simplest impact on the State Pension which is a pay as you go system. If you end up with a larger number of retirees in receipt of their State Pensions versus those contributing in, the working population then quite simply those retirees will either have to accept less pension or the working population will need to pay more. It’s maintainable to a point but I haven’t crunched the numbers or made assumptions on what basis the ratio would mean this system would collapse. It does depend on how big the shift is in terms of birth rates and immigration. Clearly a large collapse is not just a threat to pensions but multiple areas of the economy and its viability.

[@EdmundBaileyUK]

But then having said that, i did see an interesting perspective that technology and robotics can to some degree replace or fill the gap of a demographic shift. Again to what degree or how far that is out in the future is a complete guess. But an interesting more optimistic thought process.

[@ianherd569]

UK state pension is about a half of the Living wage, how cruel is that? The triple lock was supposed to catch up with other developed nations, eventually. However, the triple lock is being messed around with by those who do not have to rely on the SP. Posh boys eh?

[@richardmunoz4771]

Our horrible non caring corrupt government did this to us.

[@scottwhite1196]

I dont mind working until i drop, and having a crap pension. What Im mostly worried about is wheteher out MPs can get by when they retire on £150+ grand a year. I really do worry about how theyre going to manage

[@MC-dg5td]

Plus all the consultancy services , public talk show and expenses including mortgage interest with payments to family and friends as staff

[@geoffyoung3874]

It keeps me awake at night as well.

[@EdmundBaileyUK]

🤣 Yes, very true, those swimming pools won’t clean themselves… I really think we need to start a crowdfunding campaign to make sure they have enough to pay for the holiday home and cleaner!

[@vespapx5334]

How will boris manage

[@guyr7351]

@@vespapx5334 Vespa, based on the last 18 months boris won’t manage very well at all, tears all round worrying about him, not.

[@CWAdventures1968]

They have already increased the pension age from 65 to 67..they can't surely want a builder/plumber/labourer to die with their boots on having paid for their pension pretty much all their lives..most low earners say below 25k a year will be lucky to get near 10k a year works pension and will rely on their contributed state pension to top it up.

[@johntheaccountant5594]

You live in a fantasy world. Not many people receive £10,000 per annum works pension unless they worked in government and get a sliver pension (two thirds average adjusted salary) The average wage is £27,000 gross in the UK netting after tax and NI about £22,000.

[@beyond1957]

The long term plan must be to have no state pension except for illegal mmigrants and habitual offenders.

[@michaelpower4372]

@@johntheaccountant5594 Yes and if the boots are still ok when u die with them on. They'll take them off and give them to the next joe on the site.

[@michaelpower4372]

@@johntheaccountant5594 Sent comment to by mistake.

[@michaelpower4372]

Yes they do and when u die with the boots on and if there any good they give them to the next Joe on the site.

[@JRattheranch]

At 70 years of age now, I hardly earned enough to live through the 80's and 90's to afford extra investment! Inflation always exceeded my increase in salary....

[@BradleyCTurner]

what was your job if i can ask?

[@The_Blueyonder]

I live in Thailand. Dealing with the DWP has been horrendous. I was 66 in September. I sent my application on the 1st of May and they haven't even processed it yet. I've made 5 phone calls and they politely tell me that they don't know when I will be paid. I have the full qualifying years bar one. They tell me they will write to me. It takes about 4 to 6 weeks for a letter to get to me and as I don't have a letterbox mail can go missing. They won't email me with an update. When I am eventually paid, we in Thailand will not get our pensions index-linked. It's an absolute dysfunctional shambles. I've had a forces and a private pension since I was 60 with absolutely no problems with communications.

[@DavidGetling]

Let's not forget that someone on minimum wage gets about 2.5 times as much as an OAP on the state pension. The government has just mandated a 6.5% rise in this, and even more for younger workers. Yet it is going to screw pensioners out of their "triple lock" at a time when heating costs are going through the roof, and food prices are also shooting up.

[@MyMednas]

Except the baby boom generation is richer than everyone else. They enjoyed the good years, own all the property, many had defined benefit pensions. They didn't pay enough tax in the past to get more now. Pensioners are not getting screwed, the triple lock was ridiculous. People in their 20s and 30s now are the ones financially screwed.

[@gerrym5257]

@@MyMednas They paid exactly the same taxes as youngsters do now! It is also irrelevant how rich they are. The state pension is not means tested, the older folk paid into the scheme and have every right to get as much out as anybody else. Sounds like sour grapes and jealousy to me.

[@Jerseywonder56]

@@MyMednas Don’t generalise. Not all of that generation are rolling in it. Typical Tory attitude

[@juliebrooke6099]

The baby boom generation got free university education and a grant for living expenses. Women could retire at 60. Many could afford to buy a house in their 20s, often on only one salary and a mortgage for just twenty five years.

[@presterjohn71]

@@juliebrooke6099, that's true but workers rights were rubbish. Inflation was all over the place (my mortgage was 13% at one stage) and ironically hardly anyone went to university until they started charging for it.

[@glenfordburrell2133]

I am a baby boomer who left school in 1976 at the minimum age of 15 and 3/4 years of age. I have worked ever since and - at 62yrs, I am still doing a 40hr week. I an pretty concerned above the generations behind me - especially the Millennials of whom seem to be entering the work place at a much later age. Most of my Nephews and Nieces are entering the work place for the time in their mid-to-late twenties and many are in the teaching professions 99% of which are part-time. Plus all have accrued an astonishing amount of student loans and personal debts. I also have relatives in their late Sixties that are Grandparents that have never ever worked in their lives. In the past it was marriage and property ownership which made the state pension feasible for it to happen in the first place - where spouses were dependent on each other. The state pension didn't pay such a crucial role in the Sixties as it does nowadays. Most of my parents generation used it as a slush fund or viewed it as petty-cash. I remember being taken to the Restaurant at Simpsons on the Strand by my Aunt to celebrate my first 'grown-up meal' which was financed by her first payment from her state pension!

[@gordonbradley3241]

It's not " one of the worst in Europe " ! It's by FAR the worst in Europe ! It's also the worst in the entire 34 nations in the developed world ! Mexico and Chile can do better !

[@EdmundBaileyUK]

Thanks Gordon, although I got told off for using ‘clickbait’ so had to tone it down. 🤷‍♂️

[@iamkinginmycastle2018]

250 pounds per month in Poland my mum after 45 years of work.

[@gordonbradley3241]

@@iamkinginmycastle2018 Your mother gets 38.6% of the average industrial wage in Poland ! I get 29% of the UK average industrial wage ! Your mother has a higher standard of living than I do !

[@geoffwright9570]

Most pensioners already knows this. Although retired MPs appear not to be affected.

[@Bosshog-WealthHealthBetterment]

Didn't know that about the NIF, interesting. Been watching a few of your videos, find them helpful and informative. Happy to add to your subscribers :)

[@EdmundBaileyUK]

Thanks The Boss Hog!! Really appreciate the kind words and sentiment! 🙏🙏

[@mange2]

It would be interesting to see where we sit in the graph in relation to value, not just pension income. i.e. Do other countries require people to pay everything from their pension vs the UK Govt who pay housing benefit, pension credit, council tax benefit etc to pensioners on low incomes.

[@paulchipperfield492]

Very interesting and also very worrying for the future generations. My children are very young but i teach them daily to prepare for the future themselves and not to rely on the state.

[@EdmundBaileyUK]

Thanks Paul, sounds like great advice. The trend is across most countries is away from the state and greater responsibility is placed on the individual.

[@CWAdventures1968]

I agree but the state pension isn't relying on the state..I personally have been putting into my state pension pot since 1984 and should atleast be able to draw from my contributions at 65..I can get access to my works pension at 55,not that I expect to get at my paid in for state pension.

[@johntheaccountant5594]

@@EdmundBaileyUK I see the opposite living in the real world. People are becoming more and more dependent on the state.

[@irenedavo3768]

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[@irenedavo3768]

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[@johntaggart7406]

The UK wellfare state is being used by people who have not paid into it ,in the form of taxes or national insurance contributions WHY ? this is the cause of our problems .

[@jonh9561]

My experience of private pensions funds is that they do not perform to anything even close to their projections ( in part, due to the economic downturns/crashes that we seem to have each decade), these funds need much greater regulated monitoring. Australia has had a sovereign wealth fund, called The Future Fund for around 15 years which has now 250 billion dollars in managed funds, so I would say that this strategy has a lot of merit and something that the UK should have done years ago.

[@EdmundBaileyUK]

Thanks Jon! Yes the returns from funds versus their projections has been notoriously out of whack, some of those projections produced a couple of decades ago where beyond ridiculous. I do thing both the cost structure and the structure of investments has improved tremendously versus the with profits funds of old.

[@guyr7351]

@@EdmundBaileyUK I have noticed on some recent projections on funds that much lower rates are being used these days to illustrate growth. Financial investment companies would always exaggerate growth if they could, look at how endowments were sold and the returns illustrated to show huge gains. That turned out well.

[@johnristheanswer]

@@EdmundBaileyUK They give 3 projections - Low , Medium , High. With profits funds from the 80`s / 90`s have done very well. I`m sat on a guaranteed 9.1% income for life on a fund that grew ~ 9% per annum over 30 odd years. Yes , the annual costs wre high , but these were reduced somewhat around 10 years ago.

[@EdmundBaileyUK]

@@johnristheanswer Yes some WP have the built in guarantees or we see some pensions with GARS of 12-15% which obviously where conservative at the time but now offer rates well above anything on the open market now. But I have to say the majority of WP I come across are none transparent, complex, expensive and poorly performing.

[@colinbrigham8253]

I agree a sovereign wealth fund related to the North Sea oil bonanza would have worked but hindsight is a wonderful thing 😀

[@cinqueportcentral1602]

What gets me is that when you pay into a works pension that money being paid in is from your wages that has already been taxed but when it comes receiveing your firm pension you are again being taxed. In a roundabout way your wages are being taxed twice. As far as I am concerned it's a con.

[@EdmundBaileyUK]

Thanks for the comment Cinque Port Central. The contributions going into the pension receive tax relief, so the tax you pay is given back and then when you withdraw you will get 25% tax free the remainder is then taxed as income. So thankfully in the case of pensions you will only be taxed once and only on 75%. But certainly double and triple taxation does exist in some areas but not really for pensions.

[@cinqueportcentral1602]

@@EdmundBaileyUK I understand what your saying but what they give with one hand they take with the other. No wonder a lot of working class struggle with pension when they retire.

[@EdmundBaileyUK]

Oh it’s hugely and overly complex with very little in the way of help or assistance to understand it all!

[@sindento1942]

The workplace pension is a waste of money for the low paid. The little it will make as a pension on top of the state pension will just be swallowed in rent and council tax. It's really just a way of paying for your own benefits in advance with money you actually need now. Many many people haven't got a hope of buying their own property and will be renters all their lives. They won't see a penny of what they pay in to the workplace pension. Of course housing benefit and council tax benefit may not exist in the future but I can only make comparisons as things stand now. Many people on low incomes have struggled to pay into a pension for many years only to find they're barely any better off than their workmate who spent his income as he went along and not saved any or paid into a pension.

[@ruthwhall3020]

Prison staff, gchq ,police force and others can retire at 55yrs and yet labour's lorry drives and other manual works are still required to work untill there 66.6 I'd like to see bojo climbing ladders with a hob of bricks on his back actually to see him work would be good

[@martinowl]

Ruth, get your facts right. Prison staff employed since1988 do not have a retirement age of 55.

[@geordieman]

No longer true since the Public sector Pension changes over 5 years ago

[@ruthwhall3020]

@@geordieman as I'm now out of the work force and it's been five years I'll stand corrected ,thank you for your reply

[@presterjohn71]

I work with 2 ex prison guards. They are still working after 55.

[@roberttaylor5348]

One of the reasons why retirees carry on working part time.

[@EdmundBaileyUK]

Yes the working age of the population has increased significantly, perhaps partly as they are generally healthier too!

[@P1Fanatic]

New to the channel but really enjoying your content and the clear and concise delivery.

[@EdmundBaileyUK]

Thanks for the kind words🙏 really appreciate that!! Thank you!

[@irenedavo3768]

@@EdmundBaileyUK how do you keep working in heavy duty job?

[@EdmundBaileyUK]

Sorry Irene, what do you mean, heavy duty?

[@jonh9561]

The story with British State Pensions gets much worse if you move abroad to a country that does not have a reciprocal welfare payments agreement with the UK, which means that the UK will refuse to 'uprate' (index-link) your pension so that it does not rise in line with inflation, even though you will have paid annual increases in contributions. After around 17 to 20 years, the purchasing power of these pensions is reduced by around 50%. The Department of Work and Pensions will not tell you about this, unless you ask them direct and most people only become aware of this once they reach the UK's retirement age and claim their pensions. The UK government refuses to change its policy on this and is indifferent to the increasing amounts of grinding poverty that directly affects around 500,000 pensioners that live outside of the UK. This policy is discriminatory and immoral.

[@EdmundBaileyUK]

Thanks Jon. Yes its an unusual and kind of illogical and I was looking into why this came about and I am still not totally clear on the origin of this. As its not even consistent across countries where we do have a social security agreement in place but there is still no increase e.g. Canada and New Zealand. Its quite bizarre really. But in truth is the government bothered about this area... no not really it saves a huge sum in terms of increases.

[@ianjames3078]

@@EdmundBaileyUK but uk gov saves on the nhs bill of these people as well? Unless they fly back for treatment? Double gimme

[@jonh9561]

@@ianjames3078 As an overseas resident (i.e. expat) and pensioner, you don't get any of the other benefits that UK pensioners get, albeit fairly megar benefits and you are not entitled to free treatment on the NHS. So no double gimmie.

[@ianjames3078]

@@jonh9561 so an even bigger benefit to UK Gov, definitely a double gimme (to Uk gov, that was my point). Unbelievable that they won’t increase pension value by the meagre amount for emigrants when they don’t burden the NHS. As with any issue, when it only affects a small portion of people for a relatively short period of time (I’m thinking social care shambles as well) nothing gets done about it.

[@70PaulK]

Think this problem will become more pronounced in the next few years due to rising number of private renters. Low pensions & limited savings will make it difficult for many to manage housing costs without govt support.

[@EdmundBaileyUK]

Thanks for the very reasoned and well thought out response. And i would completely agree, those that rent into retirement that have little to no personal pension will require additional financial support, and it will be an increasing number of individuals.

[@danielcampbell3686]

From my experience, the majority of shops and other businesses don't employ enough staff to be able to pay a pension, plus many of these jobs are zero-hours or 16 hours or less to avoid having to pay the benefits a Full time employed member of staff would be entitled to. I find most of the reports the government tends to post when they talk of average earnings seem to be based on London, and on jobs such as lawyers, accountants, financial services ie the highest paid jobs, not the average of the other 80% of people in the country. which is much much lower.

[@mikeroyce8926]

And they call economics the "dismal science"!! Do you share my view that the UK state pension age is likely to be about 70 or 71 from someone born in 2000?

[@Tensquaremetreworkshop]

At least. Calculations show it should be 75 now...

[@johntheaccountant5594]

I would guess that 70 will kick in within 10 years for the basic state pension.

[@mikeroyce8926]

@@Tensquaremetreworkshop Wow.

[@mikeroyce8926]

@@johntheaccountant5594 Hmm, so bleak.

[@Tensquaremetreworkshop]

@@mikeroyce8926 Worth asking- what, exactly, is the purpose of retirement? Back in the day, it was because you would be physically incapable of doing your job. Hewing coal at 65+ is likely to be onerous. Rattling a keyboard? Not so much. Why a set age? Why not a medical diagnosis? I do not have an answer, but I can ask the question…

[@Tensquaremetreworkshop]

This all depends hugely on context. For example, Australia is shown several steps above the UK - but it is means tested! if you have above a certain level of capital OR income, you do not get it. Mexico is shown above UK - but that is only if you have worked all your life. They take 6.5% of salary, and you get the results- much less if you have worked less years. Plus, part of it is because of their five year lower life expectation- gives a higher annuity, but not a route you would choose... Finland is much higher up the scale- but the average contribution to the scheme is 24.4% of salary. If you put that much away you could expect it to be good. The UK has a low compulsory element, but both the government and the industry have spent decades telling people that a voluntary pension on top is essential. Why are people complaining about something not being compulsory? Adults should be allowed to decide on how they run their lives.

[@steveturner6770]

The UK pension is also linked to the number of years you have paid into the system. If you have only paid 9 years in you receive nothing.

[@Tensquaremetreworkshop]

@@steveturner6770 Yes- and at 10 years you start qualifying; and you can buy missing years. Max needed 35, and being compared to a pension after full working life. My point is that systems vary so much in contribution, escalation, guarantees, etc etc that they are not suitable for a crude comparison table. A better measure is what you get for what you put in- the latter is, of course, a matter of choice (above the mandatory).

[@steveturner6770]

@@Tensquaremetreworkshop I forgot you could buy missing years! I bought two years myself!

[@Tensquaremetreworkshop]

@@steveturner6770 Even better was that you could defer for a 10.8% uplift per year (ker-ching!)- not such a good deal available now...

[@paulgolden4065]

Edmund, great videos. Given Brexit and just the way things are going in UK I feel more and more people will be thinking about retiring abroad. Have you thought about doing a series of videos on tax implications of retiring abroad, cashing in pension pots abroad, taking pensions abroad. E.G. I think if you cash in your entire pension pot in France in one go they give you 10% tax free unlimited plus then you pay just 7.8% (?) tax on the remainder.

[@frederickwoof5785]

Having scraping the opt-out option some years ago, probably didnt help private pension funding. But what do I know?

[@EdmundBaileyUK]

Thanks Frederick. Wouldn't scrapping the opt out option improve private pension funding?

[@frederickwoof5785]

@@EdmundBaileyUK I thought that opting out of serps, allowed you to put money into a private pension. Some time ago it was stopped. But still I have managed to qualify with 35 years, for state pension. ??

[@frederickwoof5785]

Now I've got the problem with LV= trying to sellout to Bain and demutualise. My main pension is with them. Just voted against, as £100 offer to vote 'for', seems an insult.

[@goodgirlsguide]

But didn't the government invest it in bonds etc and what did they do with all the money they got from privatisation?

[@EdmundBaileyUK]

It did, it was Gordon Brown that sold a chunk of gold and used the proceeds to buy up gov debt. In terms of what happened to that along with the money from privatisation, that would require a bit more research to attempt to establish the results of those moves... more than likely the money is not segregated as such and will have simply been a credit. on the balance sheet, woefully insufficient versus the debt.

[@rickwhitehill1801]

My wife's NI record say 35 years fully paid but the record actually shows 2 years with no payments in the mid 90s when she was on leave of absence. Being as she wants to retire at 60 will she need to pay NI for 2 more years. The 6 years allowed to pay for missed NI have long passed.

[@barbaragrace1992]

It's amazing that these officials know where to put their own money in investments but they don't know how to deal with the pension money. It's all about self. The avarice and greed are palpable.

[@tinabaker4662]

Sorry, but you can expect nothing less from our political classes. The Prime Minister being a good example

[@robertpowell7672]

British OAP's are becoming more I.T. savvy. Not the old stereotype flat cap brigade. I hope they will remember the low pensions at the next election. All 12 million of them.

[@kennethchang1275]

As a UK pensioner the total income I receive witch is pension plus other benefits puts me just over the minimum wage if I was working. If you have an extra private pension you would not get any more than your pension and could be wose of than I am

[@stevedom1]

Around 8.32 mns you say BENEFIT payments!! I have never claimed a benefit payment in my life. MY MONEY is the State Pension that is rightfully MINE! It is NOT a benefit!!

[@EdmundBaileyUK]

Thanks for the comment Stephen, yes it’s been described as a benefit since the inception of the national insurance act in 1946, as least according to the government.

[@mo.BDV-49]

Yes a more reasonable excuse to tax @ 20% which can reduce the actual cash in hand much less, removing the triple lock will also have a drastic knock on effect in what you can survive on in this high inflation state

[@meibing4912]

Iceland, Denmark, Netherlands have mandatory collective pension savings that ensure a very high coverage for everyone in work and which ensure that real money and investments are behind your expected pension payments (low risk) - not promises based on future tax revenues (high risk).

[@EdmundBaileyUK]

Thanks for that Mei Bing! Is there any means test for them or a period of time you have to work before becoming entitled to it at the pension age?

[@meibing4912]

@@EdmundBaileyUK In Denmark and the Netherlands the pension age is quite high (67). Also the pension age goes up as people live longer to ensure the financial sustainability of the system. If you take out pension early, your money will come exclusively from your pension savings account. State pension only kicks in at 67. In reality many people save on the side and can retire earlier. Meanwhile - due to high pension fund returns - a small but growing number of people are emerging with pensions higher than their last salary (so in fact "over-saving").

[@EdmundBaileyUK]

Wow very interesting! I’ve heard of schemes that change according to life expectancy stats which is interesting!! Amazing that it isn’t a PAYGO system and sounds like it’s fully funded! 👍

[@mikey673442]

Someone has to pay for all the free loaders and economic migrants etc. it’s going to get much much worse?

[@beyond1957]

Yes this is merely the beginning. The pension age shall be increased again,70 is probably next.

[@davidingram9042]

Just wanted to add that an Economic migrant is defined as person who has moved to improve the standard of living by gaining a better paid job. Economic migrant and lets not forget to mention the EU members pay into our UK system, so also contribute to the pensions that our older generation are claiming now.

[@presterjohn71]

You need economic migrants. They are the ones who are going to be paying for your pension via tax and wiping your back side when you are old.

[@isaanman5399]

The UK is also the only OECD Country that freezes State Pension of some who retire abroad while paying it fully indexed to others. There are over 500,000 on frozen state pensions & 95% of them reside in British Commonwealth Countries while it is paid fully indexed to all those who reside in EEA Countries, Switzerland, USA, Turkey, Philippines & a few others.

[@connectlogic]

what is a pensiomn .im 40 shpuld i have one?

[@trainandbusfan5706]

How many out there have past 66 recently and are still waiting for their State Pension to be paid?

[@EdmundBaileyUK]

It’s an appalling mess at DWP!

[@gerrym5257]

@@EdmundBaileyUK Tell me about it. Had my state pension age moved from 65 to 66 under the new pension laws. At 62 was diagnosed with a terminal illness. I’m not even going to see 66, never mind get a pension payment. The government wins again.

[@louiseelleningram1639]

I've been paying into the work place pension scheme since it was mandatory. I've only got 11 years to go till I retired. I'm am so worried that I won't be able to and will have to work on. I had big plans when I was young I thought I could retire at 60.

[@gerrym5257]

I afraid that your first mistake was aiming to retire at 60. Life has shown me that 50 is a far more realistic and useful figure, as you can actually enjoy your retirement. I retired at 60 (I’m now 65) , with plenty of money put away in private pensions. My plan was to really start to enjoy myself at 66 when my state pension kicked in. 3 years ago I woke up one morning with a persistent cough that wouldn’t go away, it was diagnosed as a terminal lung condition, I now can’t walk to the end of my drive! The biggest mistake everybody makes is to plan for retirement in old age. In reality one needs to do whatever it takes to put enough away to be out of the rat race by 50! Don’t bank on even reaching 60 or 65, it’s a mugs game.

[@louiseelleningram1639]

@@gerrym5257 if I could retire now I would be do I could enjoy life.

[@badbadgerretiredinthailand]

Hi live the information you give, so I'm 62 with 37 full years, do I get the current full state pension

[@keithrotherham4681]

Retiring early. Keeping my income below personal allowance so I don't have pay the bastards any more income tax. We the British hard working people we always be screwed. This government and past governments. Should be ashamed. 🇬🇧

[@guyr7351]

Well as someone who is on national average wage my NI last month was £200 BUT we have to remember only a small amount of that is for the pension fund it’s in all sorts of other tax funded systems. a quick very rough calculation if I was 18 on £30Ka year putting in £200 a month into a pension fund for 50 years to 68 it would as a draw a down at 4% give £21K a year. Just over 60% of the 30K salary. Remember a state pension is paid to everyone on state age, the level does vary some people will have paid little in relatively over the years so are being looked after, better paid worker see no extra benefit. One of the reasons we get tax relief for pensions into our own schemes in order to look after ourselves and add to state pension at retirement

[@BradleyCTurner]

on average stocks have returned around 8+% a year to investments, thats an index fund ofc. based on your calculations you'd be far better investing into a private investment account. 200 a month for 50 years, at 8% equals 1.6million, and a drawdown of 4% gives 65k a year. and 4% is also a pretty conservative estimate to minimise risk on down markets.

[@guyr7351]

@@BradleyCTurner Hi Brad, yes the stock market will typically out perform pension funds, there is an advantage of pension funds and that is a security of the funds invested and while the pension companies will be investing your cash into various funds your money has protection built in should the company you have invested in, fail. If your investing yourself on stocks and shares then there is 100% risk.

[@barbaragrace1992]

I've subscribed purely to see whether my points are answered. I had the notion to write to the ombudsman about this already. It's a bloody disgrace for a first world country.

[@EdmundBaileyUK]

Thanks for subscribing! What specifically was your question?

[@jonethomas3892]

Told somewhere along joining the common market eu, we would fall into line with eu country's, pensions, we are still way behind after forty odd years, what does this tell you......

[@Charonupthekuiper]

We've had some bad experiences with pensions: Maxwell, mis-sold personal pensions, huge deficits and all are in the private sector. The state pension by contrast is stable, and any huge economic shocks are likely to affect the private pensions at least as much. Yet governments have let the state pension decline by linking the rate to prices not earnings, and the triple lock is likely to go west. For those having no other pension it is bad news.

[@EdmundBaileyUK]

Yes, it’s understandable people feel so negatively about pensions!

[@angelahoward3642]

Worked 35 years. My state pension is£179 A week it is disgraceful

[@gordonpaton933]

State pension for most right now is about £140 per week £7k per annum that equates to 1/5th of average wage. We are the worst of .

[@marketbeans]

Is this chart showing the purchasing power of the country’s pension or it made using a count in each countries currency 🧐

[@EdmundBaileyUK]

Thanks for the comment Zahida. Its based on the average salary in that countries currency. So I would suppose it represents the purchasing power of the pension and is also like for like in terms of taking the average salary versus the mandatory/voluntary pension and putting them against each to then be expressed as a percentage.

[@marketbeans]

@@EdmundBaileyUK thanks Edmund….reason I queried this because for each country the purchasing power of their pension would be different as we live in a global world now…if each pension is placed on chart without somehow using a common dominator / currency that would some how take away from how much actual global purchasing power /value that pension gives - just my view ….. I always do enjoy your videos and look forward to the next one 🙏

[@MrGrtx]

Hi edmund is it worth topping up missing years on your state pension from being contracted out but also receiving a defined benefit pension retiring early?

[@mrg8537]

What you also need to take in to account is retirement age and the average life expectancy. Also how many of these countries receive free healthcare? How much tax do people in these countries have to pay?

[@isabelhenderson8967]

I need to work in social care till I'm 67. Arthritic hands and knees and torn rotator cuff due to lifting and handling. Unsocial and long hours, and you get paid less per hour than you do at lidls. Love my job and those I support but it does worry me if I can work on even further.

[@marcusbain8743]

Thank you for this information Edmund. I just checked and I only seem to get a little under £8000 in state pension even though I worked 48 years before retiring. Can this be correct?

[@GULFRAZMAJEEDseye8eyes]

Excellent video explaining the pension and plus the private pension

[@EdmundBaileyUK]

Thanks!! 🙏🙏

[@GULFRAZMAJEEDseye8eyes]

@@EdmundBaileyUK well some of us Live down to the ground experience real life fully understanding insurance and pyramid schemes how the working class and the middle class with wide range of injuries playing the factors of age blindness and partially sighted and disabled people never get to collect their pensions as there is a monopoly of the elite membership like the MPs and many Lord ships and Chancellors you can pay in full contribution to National Insurance and end up suffering journey trying to survive on ends

[@GULFRAZMAJEEDseye8eyes]

@@EdmundBaileyUK it's like the 1933 1929 Great Depression Second World War you need to ask which three Chancellors made the difference in the Second World War it's about understanding poverty and every penny counts those days have gone making a hole in your pocket welcome to the Digital penny or a ruble or a rupee common denominator of digital distribution of currency that has no face on the birth coin and it creates fast value speed of lightning digital bitcoins

[@CJMVector321190]

I made the decision about 5 years ago to split my contributions 60% SIPP / 40% Stocks and shares ISA, I am self employed so no employer contribution s. This was mainly because at 38 years old now my concern is I will want to retire or be forced to due to circumstances out of my control. ( very travel heavy career worldwide engineering) and I will had all my money tied up in a pension I cannot access until 70/75 years. A big pot is then useless. It does take will power with money you can access relatively easily. I also base all my calculations on no state pension.

[@brianrobertson2853]

So why did the government start taxing my personal (company) pension some years ago?

[@EdmundBaileyUK]

Thanks for the question Brian! Pension income is taxable to income tax. Taxable income over the personal allowance is taxed according to the tax band it falls into.

[@brianrobertson2853]

This leads to a mass of questions. I.e not resident in UK. No benefits of living in UK. health services et alia.

[@EdmundBaileyUK]

Sorry with you know I was assuming that you were resident UK!

[@paulsmith1451]

I've made some good financial decisions after watching your videos thank you..

[@EdmundBaileyUK]

Thanks Paul! Appreciate the comment and kind words.

[@CrappyProducts]

To be fair if anyone is even expecting or depending on the state pension they are being naive

[@johntheaccountant5594]

Most of us will rely on the state pension. Maybe Edmund should do some research on this and give you some figures. You might be surprised to find your pension company goes bankrupt before you reach pension age so I would say to rely on the state pension rather than a private pension.

[@CrappyProducts]

@@johntheaccountant5594 You can rely, but the reality is most likely it will not exist, so now is the time to start saving for that. If it ends up existing then it's a great bonus on top anyway

[@goodgirlsguide]

@@johntheaccountant5594 that's why you need to develop skills, knowledge and get crafty. I think I may have to propagate seeds and plants and invest in houses. Unless that Marshall law comes in next year as predicted and we all get it 'confiscated'...

[@johntheaccountant5594]

@@goodgirlsguide I moved all my capital to Thailand (only have a house in the UK now where I run my accountancy practice from) as I relaised that the EU zone is doomed. I hold my capital in physical gold and cash in Swiss Francs in Thailand and have 20 acres of farm in Thailand for self sufficiency and live 50:50 UK:Thailand

[@gerrym5257]

@@johntheaccountant5594 Hello John, sounds an interesting setup, the sort of thing that would appeal to most. My worry would be that if you don’t physically hold the gold, then how reliable is it. I agree that Europe is in a right old state, and like most of the western world is headed for financial meltdown. But, where does one go, can a European person even own land in Thailand, or only property?

[@oscarnavarro8019]

That is true even to Canada....British can't live in any region in Canada. British salary wage in the country and pensio isa substandard even the pensioner with state pension cannot still live in Canada.

[@TVRCreators]

Some interesting stuff, your defo know your stuff. Great video, keep going. Your doing awesome now too 😊👍👍🎬📲

[@kennethpaultargett5483]

I'm 98 now and only working part-time.........

[@wendybrierley5412]

What about pension credit when someone's pension is low? I know someone on pension credit lives in a council bungalow and repairs done by council, even cutting the lawn. They can also afford to use taxi regularly going dancing. What about someone can claim a new car every 3 years with mot and insurance etc... I think you have to know the system and how to claim. and be well off. I know many pensioners are fine.

[@paulstewart6212]

Good informative video,,,, , keep up the good work,,👍

[@EdmundBaileyUK]

Thanks so much Paul! 🙏🙏

[@farhadkurbanov4869]

Hello! Do me January 64, when can I retire in England?!

[@EdmundBaileyUK]

67!

[@farhadkurbanov4869]

@@EdmundBaileyUK 66

[@farhadkurbanov4869]

@@EdmundBaileyUK I’m 1958

[@Jeffybonbon]

The truth is you either have to have a good Pension or no Pension I know Pensioners who today clime help with rent pay little council tax and are as well off as some one on a 10K private pension then if you have a house and pension it can go on care fees who wins the person who dosent own a house and a pension

[@EdmundBaileyUK]

Yes there is definitely a threshold where you become worse off or on an equal footing to someone with little or no savings. This is one of the fundamentals of a welfare system that to provide social support it has to come in at some level and therefore understandably some decisions will be influenced by this.

[@Jeffybonbon]

@@EdmundBaileyUK I worked for a vetrans charity and at the time a Person who retires would have needed a pension fund of around 250k and they would not be better off then a person if they only had the OAP pension and they were renting a home all of there rent and 99% of council tax would be paid for Ironic some who have auto enroled will be no better off for saving 4% or 5 % of there salary my own view is you need a pension to be worth the effort of saving and really understand how the system works Thanks Good Video

[@bluefender9489]

I am Australian 65 years old and lived and worked in UK for 18 years. I just got a letter inviting me to apply for my state pension. Gave me a phone number to ring and all sorted in 10 mins no documents, payable next birthday. OK so it is not indexed. But here in Oz I get zero so the UK scheme does not look too bad!

[@stevewalsh-balshaw1727]

The state pension is terrible and how 1950s women who've been robbed yes robbed of thousands is disgusting

[@jeanlawley6483]

Our state pension is only worse than other countries because we pay less in ...

[@bryanwalker6125]

I paid UK tax and pension contributions for forty years. At the time of starting my pension seventeen years ago, I was told that I need only have paid pension contributions for thirty years but there was no way I could retrieve the ten years of excess payment. Worse still, because I chose to retire abroad, my pension has been fixed without annual increments! Yet I am saving the UK government my expenses of health care, winter fuel allowance, free local travel and other costs available had I stayed in the UK. Now I learn that the UK pension allowance is among the worst in the world!

[@paulthompson8081]

It's good that the Mercer report ( now for two years in a row) has established that the UK system isn't the worst in the World and is in fact much nearer the top of the table. Obviously the UK with its larger private/occupational pensions. Is in many ways different to other countries but the outcome of s similar. By outcome I mean that pensioner poverty is more or less to be same here as it is s in many European countries with very different systems. Finally people in the UK who are retiring around now are often in a hugely better situation than following generations by way of property and defined benefit pensions .

[@isidorosantos6940]

Mr Bailey. Nice to meet you. I follow your videos on KZbin and translate them to better understand them, since my mother tongue is Spanish. I would like to consult you and would be willing to pay for it if necessary. I am a settled Spanish citizen. I have one year of permanent work in a small English company that hires me for five years, but I am senseta and one year old. If I spend the next five years working and contributing my social security, can I retire in this country? I dare to ask for your advice and. Thank you in advance.

[@dirkvanrijswijk4681]

The UK pension is based on the ability to save for an personal pension . The Low paid do not fall in this . Their inability is counted as their mistake . A wrong principle .

[@davidingram9042]

So are we really the worse off in europe?? Bulgaria has just upped the state pension from 150Euro to 185 euro a month and its not cheap obver there any more

[@EdmundBaileyUK]

Thanks for the comment David, on a pure replacement value then yes it is. But it has a low threshold and the expectation is that personal pensions will fill the retirement income gap up to around 60% of pre retirement income.

[@DavidUKesb]

Never ever rely solely on the State pension! I was telling people this several decades ago. I practised what I was preaching and was able to retire at 53, which was two years earlier than I'd planned.

[@EdmundBaileyUK]

Well done David sounds great!! The SP will be an added bonus!

[@irenedavo3768]

Wow!

[@goodgirlsguide]

What do you think of Liverpool Victoria selling out to an American investment company?

[@EdmundBaileyUK]

Thanks for the comment. Disappointing. I do think RL would have been a far better fit for LV and to be fair I do think LV need to invest into its infrastructure and products and was struggling with admin and back office function. We are seeing so much consolidation going on and scale seems to be the only way for these organisations to survive especially with the huge amount of legacy products that are expensive to maintain and run.

[@michaelmather7352]

in France we have to pay for a mutual health insurance to top up what you get back from the government for medical expences , and retired people need this more ,for me and my wife this is £200 per month out of my pension. Where as in the uk its free.

[@EdmundBaileyUK]

Thanks Michael, free healthcare in the UK is a big advantage over other countries!

[@MyMednas]

I'd rather have a choice of how much to invest for old age and where, rather than be forced by the state. So the UK system is fine. Where would the money for a bigger state pension come from? Our own pockets.

[@polaris7122]

How does the state force you to invest?

[@brianreynolds4627]

Thank you…very interesting and informative Video.

[@EdmundBaileyUK]

Thanks Brian!! I really appreciate that. 🙏👍

[@jamescaley9942]

Sovereign wealth fund is a great idea. Unfortunately the UK only has sovereign debt, not wealth.

[@EdmundBaileyUK]

Yes, you need the cash upfront unfortunately, I suppose we could have borrowed it and then bought shares in Tesla and Amazon... but I think it would have been deemed a bit too risky... but we would have quite the fund by now.

[@michaelathanasiou2030]

Rayner-Nandy-Reeves-Dodds-Lammy-Thornberry-Abbott-Debbonaire--, do you want these nasty individuals to be in charge ( PLEASE VOTE LABOUR)-LOL

[@Gunner-rear]

Would it be any worse than this lying, thieving, corrupt government, me thinks not.....just saying...i'll get mi coat...

[@Tensquaremetreworkshop]

The UK pension scheme is not a pyramid scheme- a pyramid has a larger base than the layers above. Pension funders are reducing as a ratio of retirees.

[@EdmundBaileyUK]

Thanks Mike. An upside down pyramid? 😀

[@Tensquaremetreworkshop]

@@EdmundBaileyUK Not sure what the shape is called- but a decreasing sized base makes it unstable 8-{

[@brianjones5221]

Thousands of billions spent on HS2, trident2 and immigrants /asylum seekers. Us British pensioners have a £4 a week rise.

[@vespapx5334]

I will have paid into my state pension for 51 years when you only need 35 years to get full pension ,this sounds bit iffy from the govt

[@gerrym5257]

Same here, I’ve paid about 46 years and only needed to pay 35. Worse still, due illness, I’m not going to make it to my state pension at 66. Where’s my government pot going to go? Back into the coffers of course.

[@guyr7351]

@@gerrym5257 sorry to hear that Gerry and that is something that should be addressed in allowing earlier access to your pension if poor health hits.

[@polaris7122]

Thought that you paid for the existing pensions, then when you retired the next working generation paid the pensions!

[@guyr7351]

@@polaris7122 your correct, and the governments aim is to have more and more people saving into their own schemes with the help of their employer so that the provision of the state pension is less of a burden on the state. There is going to be the cross over period though where many have not saved into extra pension funds so have little other than the state scheme who will struggle, and those that have saved who will be well off. Anyone wanting to retire at 55 will need to be making their own provision and making substantial savings each month

[@johntheaccountant5594]

Edmund, You need to think ahead more for your clients. Let me predict what will happen regarding state pensions in the future. You have to first realise that pension funds will perform badly because interest on bonds does not keep up with inflation. the only reason that pensions are possibly performing well at the moment is because shares are going up (despite PE ratios) purely because of money printing and investment banks piling into equities that then keep going up. The basic state pension (about £178 per week) is guaranteed even if you have a 1 Million pot pension or income when you reach pension age (say 67 years old now). I predict that this pension age will be increased to 70 BUT if someone cannot do their job (say a plasterer or bricklayer at 65) before 70, they will be "means tested" for an earlier pension credit. "Means tested" will be taking into consideration other income they have coming in so once again it is best to have your assets off your "personal balance sheet". Long term; I believe that state pensions will be like nursing health care. i.e. the government will give you a state pension but will be repayable back from cashing in your estate at death. e.g. you have a £400,000 house with no mortgage and reach state pension age. The government will give you, say £300 per week to live on and say that after 10 years you die. The government will take the £300 x 52 weeks x 10 years => £156,000 off your estate; i.e. off your £400,000 house leaving your estate with £244,000. I actually expect a lot of private pension funds to go bankrupt in the future. The figures do not stack up and as I said the share prices have gone up a lot is making the pension fund look good. However, as I said the reason for the shares being so high is because of free money and zero (even negative) interest rates. If you have negative interest rate bonds, then shares is the obvious investment as at least you might get a dividend. Another reason teh shares are high is because of company buy backs of the shares financed with nearly zero interest rates for large corporations.

[@EdmundBaileyUK]

Thanks again for the interesting comment John. I agree in part with some of those areas you mention, money printing, ultra low interest rates, the government wanting to boost asset prices to create a wealth effect etc. But, and perhaps this is where we differ, none of my clients would benefit from putting assets 'off their balance sheet', from both a practical (it wouldn't be practical, deprivation of assets, IHT, financial planning reasons etc) and a moral one. Again I have yet to meet or advise someone whereby the recommendation would be to cash in pensions or assets to obtain benefits. I would definitely say that the majority of individuals I speak to would be far more comfortable being in control of their own assets as opposed to relying on the state. And surely isn't that a significant risk to your advice is that you are placing a significant reliance on the State to provide the benefits that you think it will. Its seems counter to what you suggest. I appreciate that for some this isn't even a choice they have but being your own central bank is a more comfortable position to be rather than relying on the state to fund your standard of living. Thanks again for the interesting angle.

[@gerrym5257]

@@EdmundBaileyUK I tend to agree with your view, particularly regarding deprivation of assets to obtain benefits. The DWP are mustard on this particular area and will pull your financial records from the inland revenue. The IR know of every penny you have if it’s lodged with a bank, building society, or any other financial institution. How do you get for example, £250,000 off your personal balance sheet, where are you going to put it, under your mattress? What do you do if the house burns down? Worse still, the DWP will go back years and ask you where the money has gone, and “I’ve spent it” just will not cut it. They will ask for receipts for every penny and if you cannot provide them then you are deemed to still have that money plus interest! The penalty for deliberate deprivation of assets to obtain benefits can be a jail sentence. Very dangerous ground legally, never mind morally!

[@davidellis279]

Of course it’s bad and the MPs couldn’t give a toss,their income goes up thousands every year while the pension goes up about £3-00 a week if your lucky,every year we get worse off after council tax and inflation is taken into consideration. The MPs pension is bomb proof and very generous so it’s no wonder theirs a we’re alright Jack attitude towards pensioners. The Lords get more in a day in expenses than pensioners get in two weeks in some instances,where’s the fairness in that ??? I’m lucky because I managed to pay my mortgage off before I retired and thank God I did because If I hadn’t I’d be living on the streets now. How our youngest are ever going to pay these crazy mortgage payments they have taken out I haven’t got a clue but of course when your young retirement seems a million miles away but it’s surprising how quickly it creeps up on you and then it’s too late,you come crashing down to Earth financially.

[@colinbrigham8253]

Thank you 😊

[@EdmundBaileyUK]

You're welcome 😊

[@stevienico452]

Perhaps if the Government invested our hard earned cash into corporate business schemes it would have better growth. Currently they are edging their bets on us all dying either before or not long after retirement. I would love to know what they actually do with our money.

[@polaris7122]

Pay for the existing old age pensions, then the next generation pays yours!

[@stevienico452]

@@polaris7122 there lies another problem, they can't pay existing oap's more, and our wonderful benefits systems are paying people pensions who have contributed at best not enough and worse case - £Zero.

[@malcolmbriggs4281]

I worked for 38.5 years for a large company and I loose about 30£ a week because they opted out, of serps I believe.

[@mrglide7078]

But in return for opting out of serps (contracting out), the company would likely have had a good final salary pension scheme - which you paid into, and now benefitting from...right?

[@scottjock]

Thanks. A great article again. Given the obvious demographic time bomb, I just wondered if that's why the idea of voluntary euthanasia was discussed in parliament again recently and given the green light in principle.

[@EdmundBaileyUK]

Thanks Jim! 🙏 Wow, I have to admit I’ve not made that connection between the two factors!! 🤔

[@gerrym5257]

I think that’s a bit of a stretch! Don’t get me wrong, it’s obviously in the governments interest that all us old codgers disappear as quickly as possible, but to,suggest that euthanasia will see off enough oldies to make a significant saving is a bit of a flight of fancy. And that’s coming from me, a dyed in the wool cynic!

[@DrBenVincent]

What do you make of the MMT argument? They would claim state spending (eg pensions) is not dependent upon income (eg taxes). So they would claim that reducing pension provision and placing the risk upon individuals is a policy choice, not an economic necessity.

[@EdmundBaileyUK]

Thanks for the really interesting question Ben. I think the theory comes from a good a place in terms of wanting to provide additional spending on areas that require it, so its a nice idea. However, I cannot move beyond the simple logic and hard numbers of spending x and that the money has to come from somewhere and be paid by someone. Its far too simplistic and illogical that you can simply create money to pay for things and there be no repercussion for it down the line. Its the equivalent of a free lunch or an attempt to fight gravity. The idea that the financial system is far more complex than a individuals balance sheet makes sense but to suggest it lives outside the realms of a requirement to balance spending and income just doesn't sit well with me. It would be amazing if it! Plenty of countries have gone and will go bankrupt in one form or another. But I do take the point that the system is complex and involves a huge number of moving parts but to suggest it can defy the laws of gravity is a bit of a stretch for me.

[@Brockite]

You conflate the UK state pension with NIC's. Although you need to make or have NIC credits to receive the pension NICs are taken in to the general treasury. The idea that pensions are paid out of NICs is false.

[@EdmundBaileyUK]

Thanks for the comment Brockite, not according to the national insurance fund accounts… why do you think the NICs aren’t used for pensions? Where else would the state pension money come from if not NICs?

[@Djappyd]

I think the state pension won’t be around when I reach 68, I’m 23 right now. But I don’t care, I’m working my hardest to build a good enough pot for retirement. And besides that, I don’t wanna retire at 68, far far too late, it’ll only go up more.

[@gordonhamilton727]

I'm in my sixties. If I had to live my life over again, I would never have paid into a private pension....I would have bought Gold, if only one quarter ounce Britannia every two months or so. Gold is money, everything else is credit. Gold is THE best performing asset over the last 50 years. It outstrips very other investment, including buying a house. A £50,000 starter home in 1995 would have cost the equivalent of 294ounces of Gold, as Gold was £170 per ounce. That same house now appraising for £210,000 would cost only 140 ounces of Gold. This means that you have lost over half your purchasing power over those 25 years, and that is assuming that you bought the house CASH, and didn't pay for it with a mortgage. This is because you are measuring the house with a depreciating asset, ie the currency that you use to buy it. It is like measuring out a foundation for a garage with a tape measure that has only 7 inches to the foot, soon to be 5 inches to the foot, the size of the garage is never going to be same as it would be if it had 12 inches to the foot. In the 1960s I had two aunts in the United States, every Christmas they sent me $10 each; the price of Gold was $35 an ounce under what was the Bretton Woods agreement. That meant with my $20 I was able to buy just over half an ounce of Gold, 5.1 to be exact. Gold today as I write this to you stands at $1830 an ounce.This means that half an ounce would be $915. My aunts therefore to send me the same purchasing power today were they still alive, would have to send me over $1000 at Christmas. If I may suggest to you, you should read a book called, What has our Goverment done to our Money, by Murray N Rothbard.....this book, only 107 pages, should be mandatory reading to every 16 year old before they leave school. You might like to visit Maneco64 on KZbin as well it might help you. Good luck to you.

[@LickorishAllsorts]

Worse, and set to get a lot worse.

[@johnristheanswer]

You have not explained to viewers clearly enough that other countries eg Germany , whose workers have to pay extra ( much higher ) tax to cover their higher state pension , healthcare and unemployment insurance benefit more because of that additional cost to the individual , whereas we in the UK don`t. Europe`s pension system is generally similar to that and we are individually different so not Apples to Apples comparison.

[@EdmundBaileyUK]

Thanks for the feedback John. Yes it’s a general comparison based on an OECD report, going into detail on the variances between each country would quite honestly been a mammoth task. But you are spot on there are differences and getting an exact like for like comparison would be, probably impossible. Having said that the key message isn’t necessarily the comparison but that what is provided is likely insufficient to maintain the same standard of living that someone had pre retirement.

[@johnristheanswer]

​@@EdmundBaileyUK Agreed , I only mention Germany as we often compare ourselves to them . The other issue is - they historically don`t have a " private pension or even a company pension scheme system " , relying on their " state pension " for all income - whereas we in the UK do have company schemes and private which will get better through auto enrollment over time for the younger generations.

[@EdmundBaileyUK]

@@johnristheanswer My concern with AE, although absolutely the right thing to do if we have a low mandatory scheme (state pension) is that people, especially the young don't engage with it and honestly 8% is likely insufficient, its a start but not enough and those that opt out or are self employed are definitely going to have a hard time catching up later or suddenly have the classic cliff edge situation or will simply have to keep working if possible. Its a challenge as people are expected to take responsibility for their own savings and retirement but this often isn't someone's priority when it comes to choosing where to allocate their money.

[@itawolf2494]

Simple comparison,UK 50 years of work= state pension £560 a month, ltaly 45 years of work=state pension € 1,650 a month,who is better off.

[@johnristheanswer]

@@itawolf2494 it's not that simple though , that's the point. Tax rates paid throughout working life , local cost of living , exchange rate.

[@jonny7491]

Before the advertisements even finished I said out loud. OF COURSE IT IS.

[@EdmundBaileyUK]

🤣 thanks Jonny…

[@bigfoot-g4i]

yes well youve got to thank the tories for that.

[@paulhopkins3242]

Yep we're ajoke. No wonder we're the laughing stock of the world.

[@shamster7182]

We pay pensions out of our annual revenue(tax collected), I think Norway really does invest for its pensions? We do have a huge problem re demographics, we need 2.1 kids per couple and I think it's 1.7 , the maths of that is eventually more 'off a cliff and straight down'' than you would expect, so immigration currently keeps us stable or slightly growing, but the trend of 'can't be bothered ' with children aka narcicism, will eventually spread . So don't rely on the state pension if you're 40 odd or younger....

[@Tensquaremetreworkshop]

Yes- but Norway ha as much North Sea oil as the UK, and a fifteenth of the population. They could keep the voters happy with spending and still put a lot away...

[@isaanman5399]

UK State Pensions are paid from NI Contributions which was set up as a separate government run insurance fund to pay certain benefits to workers & that is why what you get is dependent on how many years NI Contributions you made & you need a minimum of 35 years to get the full new pension. The NHS was set up be paid from General Taxation & for the most part still is.

[@shamster7182]

@@isaanman5399 in practice it's not a ring fenced fund, I.e. if there are deficits or surpluses, if comes from or goes to the general public purse . One also has to ask oneself, what would I get if I hadn't worked a day in my life , if I were a lazy malingerer . I haven't investigated it, but I'm willing to bet you would get something that isn't too distant from a full state pension(but technically a benefit rather than pension). We just don't have the guts to be fair in that way in this country.

[@shamster7182]

@@isaanman5399 I've just been onto the dwp website and went through the calculator for 'pension credit' told them I had no state pension, no other income, no savings , and I was 68, they said I could get £177.10 a week. It was a sound bet.

[@isaanman5399]

@@shamster7182 Unless they changed it the government gave NI credits if you were out of work & claiming benefits. It was set up to ring fenced & any surplus lent to the government in the form of government bonds but the politicians couldn’t keep their sticky fingers out of the cookie jar. Where did all the money go from when all the boomers were working. Back then lots didn’t make it to retirement & most of those who did only lasted a few years. If we were all paying in & lots didn’t get to take any out & lots didn’t get to take much out then there should have been a huge surplus.

[@michaelagood9358]

We get less than the legal minimum wage!!!.