Quizzes & Puzzles1 min ago
Pension Income
I just wonder what sort of world these people live in, this is a snippet from:-
"A single person will need £31,300 a year for a moderate income in retirement, according to a pensions industry body.
The rising cost of living and an expectation to offer financial support to grandchildren had pushed up the income required by £8,000, it said.
The Pensions and Lifetime Savings Association (PLSA) uses evidence from focus groups to make the estimates.
It is intended as a guide for those planning their retirement savings.
The calculations are pitched at three different levels - minimum, moderate and comfortable - and are developed and maintained independently by the Centre for Research in Social Policy at Loughborough University.
They estimated that a single person needed £14,400 a year for a minimum income, and £43,100 a year for a comfortable retirement.
Couples required a joint £22,400 at the minimum level, £43,100 at a moderate level, and £59,000 at a comfortable level."
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The figures don't seem to take into account housing costs, which could make a major difference to the calculations.
For example, the majority of home owners are likely to have paid off their mortgages by the time that they retire. So the only money that they'll need to spend on their homes will be the costs of keeping it in good repair.
However those who rent their homes will continue to have to pay rent after they retire. In many parts of the country, £1500 per month doesn't get you very much on the rental market these days. So someone having to pay that much rent will need £18k p.a. for housing costs alone.
the kids may have to lower their expectations when having kids of their own. No way they're going to be send their aged parents up the chimneys to earn a bit extra.
That said, the current generation of baby boomers are probably the richest bunch of pensioners there ever was. As Buenchico points out a lot of them will have paid off their homes and have plenty to spare. But that's an average. Lots more are poor.
Not many baby boomers worked for companies that had pension schemes back in the day. Certainly not the blue collar workers. We were not encouraged either when we were young to think about retirement. We certainly aren't the richest group of people. Certainly not in poorer areas of the country.
I don't think grandparents should be expected to provide for their grandchildren.
noboody's encouraged to think about it Countrylover but people do. I didn't bother till I was 30 and taking up the job that occupied the rest of my working life, but I would have thought most people were paying attention by that age?
I agree lots of people didn't have workplace pensions, but I still think the figures were more and better than ever before.
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