Will This Work, Pension For Young People

[emmie]

http://www.bbc.co.uk/news/business-42366471

[mikey4444]

Emmie.....not sure if it will work, but something needs to be done.

I am retiring next June, and should have an adequate income coming in. But half of that will be a combination of company and private pensions. If I had to rel on the OAP, then I would be in penury.

You can't start a pension too early !

[emmie]

they are looking at 18 year olds, unless they choose to opt out...

[Old_Geezer]

I started a pension the first day I was in permanent employment. About 17 I think. 18 is a bit late to start but it's never too late.

Meanwhile minimum wage may either have to rise to cover the expense and the lower wage rates, or I suspect the State may have to accept the idea of pushing pension responsibility onto the individual and employer leads to finance problems for some.

[mikey4444]

OG...I joined the GPO pension scheme, as a boy of 17.

I can remember the Union man telling us that it was a really good idea to join, and it wasn't that expensive....so we all did ! Glad of that sensible advice now.

But its very different now, nearly 50 years later. There are practically no "company" pension schemes left to join.

The difficulty will be persuading those young people that starting a pensions is an all round Good Idea.

I have nephews and nieces that happily spend a fortune every month on Sky packages, Mobile phone contracts, not to mention new clothes. And yet they tell me that they can't afford to fund a pension, even at its lowest level.

I fear that something that they can opt out of will end up being exactly that....opted out. And when they get to my age, they will be penniless.

[emmie]

this is the problem, what kind of pension will there be when they get old.

[mikey4444]

Emmie....we have had auto-enrol pensions for some time now. The main problems with them are ::

1....people opt out.
2...the funding just isn't enough, and gives a false sense of security.

There is an argument to be made, for the State Pension to be beefed up considerably in the future. This is compulsory, and can't be opted out.

But the political will just doesn't seem to there.

[cassa333]

The way I see it is that it has to be understood by all that the state pension is a matter of the minimum you will have to live on.

As we know it isn't much and frankly shouldn't be viewed as 'I can retire without a care'.

Cradle to grave 'support' not 'cradle to grave lifestyle'.

Therefore if you want a half decent retirement then you have a personal responsibility to make it happen.

If the younger generation regard gadgets and such like more important then they take the consequences.

Perhaps more should be taught about financial responsibility in school?

[emmie]

cassa

yes it should be taught in schools

[mikey4444]

Cassa...you have hit on a very important factor.

As far as I can see, personal finance isn't taught at school, and its about time it should be.

[ToraToraTora]

not sure about whether it will "work" but it's necessary for people to start saving for retirement ASAP. People are living longer and the state will not be able to cope in the future. Even now there are people of my generation that will need to be supported by the youngsters and that's a huge burden.

[ToraToraTora]

"As far as I can see, personal finance isn't taught at school, and its about time it should be. " - yes replace RE with it.