UK worst in the world for retirement planning!

Discussion in 'Finance, Property, Law' started by BiscuitsAB, Feb 23, 2013.

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  1. BiscuitsAB

    BiscuitsAB LE Moderator

    The UK is the worst country in the world at saving for retirement, data from a new report into global savings shows.

    In the HSBC report, “The Future of Retirement: A New Reality”, the average Briton is found to spend 19 years in retirement but with savings that will run out after just seven.

    It means the average Briton’s savings only covers 37 per cent of their retirement income with the rest being covered by other income such as the state or employment.

    In a study that spanned 15,000 people across 15 countries Britain had the lowest level of savings for retirement.

    Malaysia was the best nation analysed with its citizens saving 71 per cent of their needed retirement income.

    On average globally people are storing up enough to pay for 56 per cent of their retirement which is an average of 18 years, leaving an eight year shortfall.

    In the report, HSBC group head of wealth management Simon Williams says: “There are, of course, many obstacles to saving, including the lack of a regular savings habit and the financial impact of unexpected life events.

    “Unfortunately, the impact of saving too little or too late will only become clear in later years, when people find they are retiring without the necessary income to support an active and fulfilling retirement.”

    HSBC: UK worst in the world at saving for retirement | News | Money Marketing

    So how are you going to bridge the gap? win the lottery, invent something, or do without in retirement?
  2. In real terms, me and the mrs will have far more disposable income when we are retired.
    The biggest problem, the cnuts keep moving back our retirement dates.
  3. Yeah, I need to pull my finger out, I'm 39 with no pension.

    Looks like I'll be manning a till at Waitrose into my 80's then :)
    • Like Like x 1
  4. BiscuitsAB

    BiscuitsAB LE Moderator

    Ah then your'e facing this question. Pension or ISA? You really should consider doing something. Unless of course you're earning under £20k Pa in which case the new minimum pension paid by the state will work out at almost 50% of final salary.

    If you're self employed then you need to look after yourself, if you work for a firm then pretty soon (or now depending on their size) they will be joining you into their new pension scheme. Its compulsory, although you don't have to stay in. But its really only a half measure for someone who's 39. You need to think about putting some money aside so that you're not completely reliant on the state post retirement. Otherwise they will have you over a barrel.
  5. I often wonder - well occasionally - how anyone can be expected to save for their retirement when the cost of living is so high. Young people have to; save for/pay a mortgage, pay energy bills, food and clothing. If there is anything left they might be able to spend some enjoying their youth.

    It seems easy to say that people need to save for their retirement but harder to put into practice.
  6. BiscuitsAB

    BiscuitsAB LE Moderator

    Interesting point, please define these young people? Who are they?
  7. DONT START ME ON PENSIONS !! i did what the gubmint asked-save in company and then in private pensions since i was 21-started taking a pension aged 50 through a drawdown scheme -good for 6 years then told that because of rules the amount i can take must be cut by nearly 50%-this despite the fact that if i took the full allowed amount i previously took then it would take another 15 years before my fund ran out-assuming it never earned another penny in its investment !! at that stage i will be 73- this is despite the fact i am still paying over 20% of my earnings into ANOTHER scheme-so to sum up -pension fund there-money in fund-cant have it !! missus and son rubbing hands together waiting for the old fart to pop his clogs and be left with mahoosive amounts of cash to piss against the wall !!
  8. The same young people who regard paying £200/m for a car on HP as an essential expendiature?

    I suspect a lot of the people who sniggered at me making do with a £300 escort in the mid 80's and bunging £30/month into a pension while they raced past in a shiny XR3 won't be laughing when they turn 66,
    • Like Like x 4
  9. BiscuitsAB

    BiscuitsAB LE Moderator

    Rules are changing Maximum GAD is going back up to 120% speak to your adviser or if you've lost touch PM me and I'll see if I know anyone reliable in your area.
    • Like Like x 1
  10. BiscuitsAB

    BiscuitsAB LE Moderator

    BANG! and that's the sound of the nail being driven into the board with a sledge hammer!
    • Like Like x 1

  11. ya i know and have discussed it with my financial advisor- it doesnt alter the facts that generally pension funds are robbing bastards who want your money to invest but are reluctant to pay it out again-given hind sight i would have put far more into tax free isas (if they had been available )or even bought property which i could now sell rather than put into funds which are difficult to access because of government rules.
  12. I am only imagining what it might be like to starting out again. It was hard enough in the the sixties but it seems more expensive to purchase the basics now. But I probably have it all wrong.
  13. Extravagence !! I had a Ford Anglia in the 70's.

    Those from Yorkshire may now comment.
  14. BiscuitsAB

    BiscuitsAB LE Moderator

    I think its about choices mate, young people have to choose what they want. If they want a lifestyle of clubbing and drinking and driving flash cars then they pay for it. They cannot however blow all their cash on a lifestyle and then expect someone else to pick up the bill later.

    The welfare state Cradle to the Grave experiment has been tried, it worked for a generation. It then became the modern equivalent of Bread and Circuses for the masses. A bloated leviathan that sucks Billions of pounds out of the economy.

    Its time for a change either by choice or by default. And time for people to reassess whats actually important. Is it a brand new car and a flash cash lifestyle now, or is it a bit of moderation now in order to be able to support yourself in the future. After all the mortality age as a country is steadily on the rise and many people could be drawing on pensions for 40 years, in some cases that's longer than they will have worked for.
    • Like Like x 3
  15. problem is as always baby boomer 'Western european expectations', still has'nt sunk in that 3/4 of the world don't get enough to eat, economically we have chinkies/Indians with good qualifications working for less snapping at our heels and our economic decline is terminal, add on the the transitional influx from Eastern Europe who aspire but will work for less for lets say the next 15/20 years and of these for every decent polish plumber/dentist/nurse(they are moving into the lower middle class proffesions) you'll get 3 Roma, 2 ukrainians(pretending to be polish) 1 albanian, 4 romanian, 3 bulgarian which are low skill nations by which time the social safety nets will have collapsed and sterling will be worth '**** all' all these cruises/golf outings ect will be a distant dream..of course the real elephant in the room is 'too many people' and their ****ing poor.. at the moment there is no mechanisim for this, you think its bad now, compared to a lot its great, the real start of the collapse is about 8/10 yrs away
    • Like Like x 4