Retired folks get too much benefit

[Midwest]

'er indoors paid into a private pension for years. pot worth £9500. 2 years ago, she was entitled to cash it in, but thanks to tony b.liar and the fat controller, she could only draw £2200 ( taxed ) so just under £2000. the rest forced into an annuity. she'll need to live to the age of 105 just to get back the £7500.

If your still talking there was a rule change on annuities, she MAY be able to withdraw that lump sum now.

 

[Rpa07]

If your still talking there was a rule change on annuities, she MAY be able to withdraw that lump sum now.

Don't tell him that Midwest - he wants her to live to 105!

 

[telectrix]

If your still talking there was a rule change on annuities, she MAY be able to withdraw that lump sum now.

i know the rules changed, but i think that once it's committed to an annuity, it's stuck there forever, but i'll check.

 

[Midwest]

i know the rules changed, but i think that once it's committed to an annuity, it's stuck there forever, but i'll check.

There are a few caveats, like you might have to sell the existing pot on and take a bit of a hit, but ultimately you don't have to stick with the annuity now (something to thank Big Dave & Little George about ).

The pot is 25% tax free, then the rest is taxed at your highest rate, something to consider. Had a similar pot, and my projected annuity was £300 a year, think I had to live to 95 to break even. Mine went on paying off the mortgage.

 

[David M]

I must admit, my old man has often said he would hate to be young again this day and age. He see's the difficulties the modern generation face and openly admits in "his day" things were far simpler and easier. Ok they had no technology so to speak and lived simpler life styles. But the pace of life, thus the pace of working, was much slower and the cost of living cheaper. He had the energy to, if he chose to, work 2 jobs because it was easier back then, life is so fast paced now, people are far more stressed (these are his words not mine). He openly admits that when himself and my mother were both working full time, he could afford to bank all his wages and live off just my mother's wage. They could comfortably afford to pay the bills, mortgage, run a car and go on holiday all the while he paid a healthy sum into his pension and savings account. My father at that time was a pottery castor, my mother an admin clerk, both just average jobs. He could leave a job one day and walk into a job the next, no worries no stress. He paid £800 cash for his first house (no running hot water, toilet in the back yard). He saved up, did that house up and sold it, got a mortgage and bought the house he still lives in to this day for £7000.

Now retired, though not wealthy lives a comfortable life. He worries about his kids & grand kids and what future they face.

 

[telectrix]

when you see children of 7 and 8 years old with mobile phones in their grubby paws, ipads and playstations at home, brand new bike every xmas, then tell me the younger generation is hard done to.

 

[Peter Page]

I agree with your dad to a point David M, but you said it" No running hot water and a toilet in the back yard". Now it's Central Heating, On-suite Bathrooms, washing machines, dish washers, microwave ovens, broadband, Sky tv....... It is all the extras that break the bank. Yes you could walk into a job the following week if you wanted to, but these days if you want to learn a new trade there are courses available every which way you turn. If you wanted to buy a house requiring renovation, there is nothing you can't learn to do yourself on the internet.
Yes admittedly people are more stressed these days, but only because they want so many of the luxuries in life. The kids must have bikes and computers because the Jones's kids have them!
But all these luxuries do not bring happiness.
Your dad was lucky to have holidays and a car, that was very rare when I was a kid, but I bet he had a basic Austin 7 type car and a holiday in the West Country at best, unlike these days jetting off to Spain with a Gas Guzzler with £300 tyres sitting on the drive because it looks cool.

 

[telectrix]

No running hot water and a toilet in the back yard"

you forgot spending 5 years in north africa dodging bombs, shells and bullets, queueing up at the butchers for 1/2 lb streaky bacon on a ratrion card, us kids in a basket on the back of our mam's pushbike, da building us bikes from bits at the council tip. was really so much better than the kids today have it.

 

[David M]

I agree with you both.
I guess my angle was to point out that comparisons are not always as straight forward as one might think. The pace and life style has changed dramatically over the past 50 years. In someways I blame technology, think back to just before mobile phones existed. If someone wanted to contact you they either left an answer message on your land line or sent you a fax if you had an office. These days people pick up the mobile and expect you to their beck and call.

When I was a lad we had one main Christmas present. This was usually something picked out of a catalogue at a budget. Something that my mother could easily afford. These days parents go into debt to pay for things for their kids, that they are often not that grateful for. The stress is ridiculous, and its modern society that has caused it.

Nowadays when these kids go out into the wide world often they will never be able to afford their own house, at least before they are 30. Car insurance premiums are so high for young drivers they often have to rely on other family members to contribute in some way. They will be relying on their family for much longer than the previous generations had to. Its not (in my opinion) a healthy situation.

I believe starting with the government this issue needs addressing. Whether the current wealthy OAP's should be made to contribute for the welfare of the generations to come is up for debate and maybe not even relevant.

 

[David M]

No running hot water and a toilet in the back yard"

you forgot spending 5 years in north africa dodging bombs, shells and bullets, queueing up at the butchers for 1/2 lb streaky bacon on a ratrion card, us kids in a basket on the back of our mam's pushbike, da building us bikes from bits at the council tip. was really so much better than the kids today have it.

hah... the good old days, I remember my Gran telling me her war time stories, Her generation suffered more than most others, though we all know this, many folk forget!!.
I totally agree with you Tel

 

[Peter Page]

Yes Teletrix, I still look at the bikes when I go down the tip and wonder why they have been dumped? For a kid to have a basic mobile for emergencies is one thing, but you see them with the latest I Phones which I think cost £500+?
But like you said about dodging bombs in Africa, National Service would do most youngsters a lot of good and put things into perspective for them. My Dad was just glad that the war ended, he never once moaned about how hard life was and it was hard for him, he used to be a Clock Maker leaving for work at 8am coming home at 6ish having dinner then carrying on with the work he brought home until 12 - 1am regularly, but he still struggled to manage to feed the family.
The other thing that I find odd is the people that say it is so hard to get on the property ladder have the lowest interest rates I have ever seen. In the eighties I was paying 16% and then lost my job in the recession. But so many young people I know max out their credit cards and just keep paying 20 odd % interest on it? A friend of mine who earned £100 k a year and was always broke and up to his eyes in credit, was made redundant and was paid out a three figure sum. I said to him, are you going to pay off your mortgage, he said, no we are having a good holiday and I want to get a few things? Well he has now lost his job again and looking for work at 50!

 

[Silly Sausage]

when you see children of 7 and 8 years old with mobile phones in their grubby paws, ipads and playstations at home, brand new bike every xmas, then tell me the younger generation is hard done to.

Down your Scouseland way, they're probably all nicked anyway!
We live in the 'I want it and I want now' generation world.

 

[Leesparkykent]

When I brought my 1st family home I had to stump up 70K on a 280K house....I saved up 35K and my missuses parents put 35K in. Some of my friends who don't have parents that are in a position to help and only earn around minimum wage/living wage will never be in a position to buy a house unless they win the lottery or inherit one. And that's both of them working full time jobs.

 

[7029 dave]

I looked back over this thread, stand by what I said,but with today's current situation zero hours contracts, no final salary pension, it is hard for the young folk.

 

[Silly Sausage]

I looked back over this thread, stand by what I said,but with today's current situation zero hours contracts, no final salary pension, it is hard for the young folk.

I think final salary pensions are a very privileged luxury that are long gone, thankfully in these days of where one is likely to be retired for far longer than one has worked.
I feel sorry for University students (not the ones who do degrees in things like hairdressing in upgraded Polytechnics) who'll start their early 20s with £50,000 debts hanging around their necks, appalling.
The other poor sods are South East locals who will never be able to buy their own house, subjugated to a lifetime of paying rent to some fat, greedy ...... (I better stop there )

 

[telectrix]

The other poor sods are South East locals

they can always move up north and get dirty instead of fake=tanned. after all, for the last 300 years it;s been the graft of us northerners what paid for all them fancy houses down there.

 

[7029 dave]

I think final salary pensions are a very privileged luxury that are long gone, thankfully in these days of where one is likely to be retired for far longer than one has worked.
I feel sorry for University students (not the ones who do degrees in things like hairdressing in upgraded Polytechnics) who'll start their early 20s with £50,000 debts hanging around their necks, appalling.
The other poor sods are South East locals who will never be able to buy their own house, subjugated to a lifetime of paying rent to some fat, greedy ...... (I better stop there )

Agree with that too. I lived through the tory government, we have bred an population that say's ...... you jack im ok greed is rife.

 

[Silly Sausage]

The other poor sods are South East locals

they can always move up north

No no no, we get enough grief from Scousers as it is, let alone a bunch of 'Leave it arrt geezer' suvverners.
Besides, it's grim up North, they'll be on first train home after a day or two. Save themselves the train fares.

 

[Rpa07]

Has anyone checked on @sparksburnout?
I'd figured that he'd had a right bad day and the post was him venting. Back to work tomorrow, I for one hope that he's had a good weekend.
Same with the lot of you.
Have a good week and remember - Jesus loves you

 

[David M]

When I brought my 1st family home I had to stump up 70K on a 280K house....I saved up 35K and my missuses parents put 35K in. Some of my friends who don't have parents that are in a position to help and only earn around minimum wage/living wage will never be in a position to buy a house unless they win the lottery or inherit one. And that's both of them working full time jobs.

That's another thing, these days most average earning young couples both have to work full time to pay the bills. Times have changed, life styles have changed.