Originally Posted by BGM
so, im still not entirely sure what this thread is about.. basically we are saying that even people capable of saving, over the course of their working life, up to the maximum limit of £1.25m are still not going to have a 'liveable' income.. i'm also still not really sure what happens if you go over that limit tbh, but meh
if that's the case, then sweet baby jesus... vast majority of the population are just completely and utterly fucked. i calculated a few years back that i would probably need somewhere in the region of £450k pot for something half way decent.... so i set about ensuring i would save that even before compound interest was taken into account.
perhaps i should read this thread again, more carefully...
Essentially what is being said is that instead of being the safe way into old age, the standard state and company defined payments pension will no ensure a comfortable old age, even if you can afford to save up to the Government's recently imposed limit.
What few realise is how bad the pension situation has become, with the maximum size pension pot now only able to produce slightly under £3000 per month....not a lot given the relatively huge amount that needs to be saved to achieve this.
Any pension pot that exceeds £1.25M will carry a 50% tax on the excess. With all the limitations placed on pension contributions, it has now become a minefield of limits and both foreseen and unforseen tax liabilities.
A pension pot of the 1990s would have produced a pension of 2 - 3x what the same pot will produce today, thanks to Gordon Brown and greedy bankers
Saving for a pension requires a 30 - 40 year committment, but concientious savers have been utterly betrayed by subsequent Chancellors deperate to get their hands on your cash.....any cash...even cash you haven't yet earned but may earn from your pension in the next 20 years. The fact there's no outcry is a sure sign that people are only going to wake up when its far too late and they find their 'Golden Years' have turned into 'tin plate' without them noticing.
What most people probably don't realize is the degree to which excess Government spending, quantitative easing and the Euro crisis has impacted saving's ability to generate income. Combine this with new legislation that limits pension pots and contributions and you've got a perfect recipe for old age poverty for millions who to this day may be looking forward to retirement with eager anticipation.