BobHatton
Vital Champions League
Talking to Pete about pensions got me thinking; what is the 'norm' now in the UK with regards to pensions?
I know that people who worked in the health service, police, civil service etc get automatically placed in a pension scheme but what about other working folk? Do they rely on the aged pension? When I was last in the UK (mid 90's), people were encouraged to take out 'private pensions' as ultimately there wouldn't be an aged pension. The UK also started to raise the pension age (like other countries) up to the age of 70. What do people do now? Do many of you have private pensions to supplement the aged pension?
In Australia, since 1992, every employee gets paid 9% of their salary into a superannuation scheme (this is on top of their salary) by their employer by law. You can choose which superannuation scheme you go in and this has a 'preservation age' i.e. an age which you can take it out and this depends on when you were born (my preservation age is 59 at present) and the funds are all invested into the share market. The performance is usually pretty good (averaging 9% growth per year) and is definitely needed as the aged pension is very low (around $400 a week). Trouble is, if you accrue too much wealth in your funds, then it is 'means-tested' and your government pensions are reduced. You simply can't win.
Interested to know what happens in UK now and what do most people do/prepare for?
I know that people who worked in the health service, police, civil service etc get automatically placed in a pension scheme but what about other working folk? Do they rely on the aged pension? When I was last in the UK (mid 90's), people were encouraged to take out 'private pensions' as ultimately there wouldn't be an aged pension. The UK also started to raise the pension age (like other countries) up to the age of 70. What do people do now? Do many of you have private pensions to supplement the aged pension?
In Australia, since 1992, every employee gets paid 9% of their salary into a superannuation scheme (this is on top of their salary) by their employer by law. You can choose which superannuation scheme you go in and this has a 'preservation age' i.e. an age which you can take it out and this depends on when you were born (my preservation age is 59 at present) and the funds are all invested into the share market. The performance is usually pretty good (averaging 9% growth per year) and is definitely needed as the aged pension is very low (around $400 a week). Trouble is, if you accrue too much wealth in your funds, then it is 'means-tested' and your government pensions are reduced. You simply can't win.
Interested to know what happens in UK now and what do most people do/prepare for?