Ten Million Workers to Pay More Pension Contributions

MrBane

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#4
Not really. I'd suggest this is the government finally getting its act together to put in place measures that will look after people to some degree into retirement as many don't bother their arrse to so it themselves.

An expectation of a government pension in this modern climate is not a sensible way to prepare for old age.
 
#5
No not really. This money will come back to you when you retire. Having said that I'm not an expert on current pension schemes.

I was fortunate to be in a local government scheme for twenty years and when ill health forced me to leave my job early, I discovered that having paid into a pension scheme was one of the great decisions of my life and there weren't many of them I can tell you.

From what I can make out these days, the schemes on offer now aren't a patch on the older final salary schemes. That said, any money coming in during your later years of life will, I'm sure, be very welcome.

Many of my friends around my age didn't make any provision for a pension and as they approach retirement now, they are facing a retirement on just their OAP pension or just on benefits because they didn't pay into any pension NI contributions at all.
 
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#6
6% of my salary goes in to a local authority pension scheme, which my employer matches. Decent.

My old man done it for years as well and it was a big plus later in his life.
 

MrBane

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#7
Yep. An ageing population meant only one thing - higher taxes for everyone.

While taxes will still go up, at least they can't use the pension excuse as much now - because the vast majority of people now enrolled in a workplace pension were probably going to end up on government pensions or as is more likely for the you get generations now coming in to work, no pension.

I've believed for a long time that the government is going to at some point, offer to buy out everyone from their government pension with a lump sum and then that's it, you're on your own.
 
#8
6% of my salary goes in to a local authority pension scheme, which my employer matches. Decent.
Try working in academia: 8.8% Employee 19.5% Employer, going up to 11.4% and 24.9% next year.
 

ExREME..TECH

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#10
Yep. An ageing population meant only one thing - higher taxes for everyone.

While taxes will still go up, at least they can't use the pension excuse as much now - because the vast majority of people now enrolled in a workplace pension were probably going to end up on government pensions or as is more likely for the you get generations now coming in to work, no pension.

I've believed for a long time that the government is going to at some point, offer to buy out everyone from their government pension with a lump sum and then that's it, you're on your own.
Five million new people coming here didn't help either
 

Daxx

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#11
About time those in work starting paying so the govn can subsidise the allowances of those not in work.
 
#12
Try working in academia: 8.8% Employee 19.5% Employer, going up to 11.4% and 24.9% next year.
I'll trump that with for police - 14.25% employee and **** knows what employer. :D
Count yourself lucky. Your return on those contributions cannot be matched by a private pension with the same amount paid in. Very few private sector companies will pay much over and above your own contribution. I doubt public sector pensions in the future will offer the same returns for those joining over the next few years.
 
#13
Workplace and personal pensions - GOV.UK

Not tax as none of this money goes to the Government. Therefore not a tax rise. In fact, due to tax relief on pension contributions these folk will all be paying less tax as well as saving towards their retirement years.
you may get tax relief on your contributions which cuts your bill down slightly ,but, when you claim your pension you then get nailed for tax on the lot, bit of a double edged sword to me, also they have carped on loudly about increases in the minimum wage for low earners, with the increases in compulsory contributions and inflation actual income has dropped markedly
 
#14
I only started paying into a pension when I left the Army, four years ago - so when combined with my employer's contributions I'm putting away 23% to supplement the military one that I'll get.
 
#15
you may get tax relief on your contributions which cuts your bill down slightly ,but, when you claim your pension you then get nailed for tax on the lot, bit of a double edged sword to me, also they have carped on loudly about increases in the minimum wage for low earners, with the increases in compulsory contributions and inflation actual income has dropped markedly
Nope.

You'll get tax relief on your own contributions at the rate of tax you pay, which could be higher or even additional rate.

When you draw your pension, you can take a chunk of it tax free, and whatever is left will bear tax at the rate then appropriate, but you will not have to pay NICs.

Although employee contributions are increasing for most auto enrolment schemes, the employer contribution will also rise.

I've discussed this issue in FT Adviser, because I'm ace.
 
#16
No one knows what the pension or tax situation will be in 5 years never mind 20.
With an aging population and increasing medical bills I would hazard a guess that those with money who don't 'hide' it will be paying more to the government. A lot more.
 

Gout Man

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#17
#18
I've believed for a long time that the government is going to at some point, offer to buy out everyone from their government pension with a lump sum and then that's it, you're on your own.
I would potentially take that offer, when I see it and black and white.

What I think is far more likely to happen is that the State Pension ( as we currently know it ) will become means tested. Every single person who has an occupational pension or some type of private pension will get absolutely shafted.
 

MrBane

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#19
I would potentially take that offer, when I see it and black and white.

What I think is far more likely to happen is that the State Pension ( as we currently know it ) will become means tested. Every single person who has an occupational pension or some type of private pension will get absolutely shafted.
That's an option, but as you'd have been paying in to it, there would be significant legal challenges, hence why I suspect a buy out would be the final outcome.
 
#20
I would potentially take that offer, when I see it and black and white.

What I think is far more likely to happen is that the State Pension ( as we currently know it ) will become means tested. Every single person who has an occupational pension or some type of private pension will get absolutely shafted. Apart from the MPs and other prominent members of what could be described at the Westminster bubble.
FOC
 

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