Are you in a pension scheme?

stumpski · 01-10-2012, 12:26 PM

I was interested in the lead news item this morning, thousands of people who've never paid into a pension before will start doing so:

Auto-enrolment pension scheme for millions begins - Yahoo! Finance UK

There is an 'opt-out' which makes me wonder how many will still be paying in six months from now, but I was wondering how many here, especially those in their twenties and thirties, are not and have never been in any sort of scheme. Also on what the situation is outside the UK - whether it's compulsory. I pay in about £22 a week which won't get me much in retirement (about 15 years away, if I'm lucky); those who pay in the minimum of £2.37 a week will be lucky to buy a pint of milk a day on what they get back.

Are you concerned, or is it just too far away to worry about?

stumpski · 01-10-2012, 12:29 PM

Fair to say that the comments on the linked item aren't exactly positive, but that's Yahoo for you. I'm surprised more of them haven't blamed "the immigrants" ... actually, they probably have.

silentstriker · 01-10-2012, 12:34 PM

You would be crazy not to save at least up to the maximum of whatever your employer matching.

I'm was always surprised at people at work who don't know that the employer will match a certain percentage of your savings into a 401k plan. It is literally free money...someone is giving you $2 for every $1 you give them.

fredfertang · 01-10-2012, 12:52 PM

I've been paying into various pensions for the best part of 30 years, not sure it will do me a great deal of good though

Agent Nationaux · 01-10-2012, 01:33 PM

I'm not permanent staff, so can't get into the government pension scheme.

GIMH · 01-10-2012, 01:41 PM

Yeah, salary sacrifice with matching contributions. Win-win.

stumpski · 01-10-2012, 01:48 PM

Surprises me how many people at work aren't in the company, or any other scheme and think they'll be able to live on the state pension - a lot of them are guys under 30, who just aren't interested, or they say things like "I've invested in property" - which generally just means that they own a house. Well, unless you take in a lodger, you won't make any money from that. There's always the possibility of an inheritance of course, but with people living longer, many of us will be retired ourselves before our parents pass away.

GIMH · 01-10-2012, 02:05 PM

My employer enrols you in the scheme automatically if you're over 25. You can opt out, but yeah.

In my previous job I got contributions of 3% without having to match.

fredfertang · 01-10-2012, 02:06 PM

I'm doubtful as to how many will bother - I put a not inconsiderable amount into mine and have done for years, but it still doesn't amount to much - if my secretary put half as much into hers as I do in mine it would be a fair slice of her income, and she'd end up with half of not a lot - I'm not surprised she can't see the point

HeathDavisSpeed · 01-10-2012, 02:55 PM

Sounds similar to the NZ "Kiwisaver" scheme. I'm in, ftr, but only joined post 30 and once I had real commitments that I had to worry about etc.

Burgey · 01-10-2012, 05:44 PM

In this country, because of the work of the immortal Paul Keating (blessings be upon him) everyone has 11% superannuation put into an account which they can't access until age 60 or 65. The scheme started in the late 80s at 3% and will eventually get to 15% (it should be there now but that's another story). You can also make voluntary contributions over and above the prescribed employer contribution.

The idea is you retire one week and start the next on a pension the same as the wage you leave work on. It's a massive pool of national savings.

Unfortunately, because of the delays in getting to 15%, the baby boomer generation will miss the full benefits, meaning there will still be a massive drain on the finances of the country as the boomers retire and are on government pensions.

It was done as a wage increase trade off and is probably the single biggest forward-thinking reform we've ever had. It means an income replacement model of pension, not a subsistence model.

Dan · 01-10-2012, 11:38 PM

Quote:

Originally Posted by Burgey

In this country, because of he work of the immortal Paul Keating (blessings be upon him) everyone has 11% superannuation put into an account which thu can't access until age 60 or 65. The scheme started in the late 80s at 3% and will eventually get to 15% (it should be there now but that's another story). You can also make voluntary contributions over and above the prescribed employer contribution.

The idea is you retire one week and start the next on a pension the same as the wage you leave work on. It's a massive pool of national savings.

Unfortunately, because of the delays in getting to 15%, the baby boomer generation will miss the full benefits, meaning there will still be a massive drain on the finances of the country as the boomers retire and are on government pensions.

It was done as a wage increase trade off and is probably the single biggest forward-thinking reform we've ever had. It means an income replacement model of pension, not a subsistence model.

It's a fantastic system as far as I'm concerned; although I haven't done any real research into Super, I've yet to hear any real negatives of it.

Keating, WAG.

BoyBrumby · 03-10-2012, 07:53 AM

Being a poor, crapped on civil servant <pauses for booing to subside> I'm in a pension scheme by default.

HM Govt has recently changed the terms of my scheme so I now have to chuck in 2.7% of my salary as opposed to the 1.5% previously, but they have upped their contributions from 17.1% of my salary to 18.8% as recompense. It's absurdly generous to my way to thinking.

Hurricane · 03-10-2012, 08:55 PM

Quote:

Originally Posted by HeathDavisSpeed

Sounds similar to the NZ "Kiwisaver" scheme. I'm in, ftr, but only joined post 30 and once I had real commitments that I had to worry about etc.

Quote:

Originally Posted by BoyBrumby

Being a poor, crapped on civil servant <pauses for booing to subside> I'm in a pension scheme by default.

HM Govt has recently changed the terms of my scheme so I now have to chuck in 2.7% of my salary as opposed to the 1.5% previously, but they have upped their contributions from 17.1% of my salary to 18.8% as recompense. It's absurdly generous to my way to thinking.

I am deathly jealous of Brumby's scheme. I think Kiwisaver is you put in 1-8% of your salary and the employer puts in like 2% only. I want to save enough to buy an investment property so I can get some tenants paying for my retirement is the master plan. Sadly I am a long way off that goal atm.

GIMH · 04-10-2012, 01:24 PM

Quote:

Originally Posted by BoyBrumby

Being a poor, crapped on civil servant <pauses for booing to subside> I'm in a pension scheme by default.

HM Govt has recently changed the terms of my scheme so I now have to chuck in 2.7% of my salary as opposed to the 1.5% previously, but they have upped their contributions from 17.1% of my salary to 18.8% as recompense. It's absurdly generous to my way to thinking.

18.8%? I thought you ****s were always on strike over pension issues?

01-10-2012, 12:26 PM	#1 (permalink)
stumpski Cricket Web Staff Member Join Date: Aug 2006 Location: Medway valley Posts: 5,276	Are you in a pension scheme? I was interested in the lead news item this morning, thousands of people who've never paid into a pension before will start doing so: Auto-enrolment pension scheme for millions begins - Yahoo! Finance UK There is an 'opt-out' which makes me wonder how many will still be paying in six months from now, but I was wondering how many here, especially those in their twenties and thirties, are not and have never been in any sort of scheme. Also on what the situation is outside the UK - whether it's compulsory. I pay in about £22 a week which won't get me much in retirement (about 15 years away, if I'm lucky); those who pay in the minimum of £2.37 a week will be lucky to buy a pint of milk a day on what they get back. Are you concerned, or is it just too far away to worry about?

01-10-2012, 01:41 PM	#6 (permalink)
GIMH Eternal Optimist Join Date: Dec 2005 Location: Shake my tree where's the apple for me? Posts: 43,622	Yeah, salary sacrifice with matching contributions. Win-win. __________________ Watch out, for as soon as it pleases them they’ll send you out to protect their gold in wars whose weapons, rapidly developed by servile scientists, will become more and more deadly until they can with a flick of the finger tear a million of you to pieces RIP Craigos. A true CW legend. You will be missed.

01-10-2012, 05:44 PM	#11 (permalink)
Burgey Cricket Web Staff Member Join Date: Aug 2006 Location: The Castle Posts: 35,154	In this country, because of the work of the immortal Paul Keating (blessings be upon him) everyone has 11% superannuation put into an account which they can't access until age 60 or 65. The scheme started in the late 80s at 3% and will eventually get to 15% (it should be there now but that's another story). You can also make voluntary contributions over and above the prescribed employer contribution. The idea is you retire one week and start the next on a pension the same as the wage you leave work on. It's a massive pool of national savings. Unfortunately, because of the delays in getting to 15%, the baby boomer generation will miss the full benefits, meaning there will still be a massive drain on the finances of the country as the boomers retire and are on government pensions. It was done as a wage increase trade off and is probably the single biggest forward-thinking reform we've ever had. It means an income replacement model of pension, not a subsistence model. __________________ WWCC - Loyaulte Mi Lie "People make me happy.. not places.. people" "When a man is tired of London, he is tired of life." - Samuel Johnson "Oh my God, there's a castle! A castle!" Last edited by Burgey; 02-10-2012 at 12:17 AM.

03-10-2012, 07:53 AM	#13 (permalink)
BoyBrumby Englishman Join Date: Aug 2004 Location: Doing the stance Posts: 42,645	Being a poor, crapped on civil servant <pauses for booing to subside> I'm in a pension scheme by default. HM Govt has recently changed the terms of my scheme so I now have to chuck in 2.7% of my salary as opposed to the 1.5% previously, but they have upped their contributions from 17.1% of my salary to 18.8% as recompense. It's absurdly generous to my way to thinking. __________________ *- As featured in The Independent.* "This is not the time for namby-pamby promising youngsters who might just do something; not the time for building for the future. Pragmatism rules and they don't come more pragmatic than Rogers." - Victor Marks makes the case for stiff-legged and stiff-armed 35 year old left-handers in Ashes squads

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01-10-2012, 12:29 PM	#2 (permalink)
stumpski Cricket Web Staff Member Join Date: Aug 2006 Location: Medway valley Posts: 5,276	Fair to say that the comments on the linked item aren't exactly positive, but that's Yahoo for you. I'm surprised more of them haven't blamed "the immigrants" ... actually, they probably have.

01-10-2012, 12:52 PM	#4 (permalink)
fredfertang Cricket Web Staff Member Join Date: May 2008 Location: high dudgeon Posts: 9,737	I've been paying into various pensions for the best part of 30 years, not sure it will do me a great deal of good though

01-10-2012, 01:33 PM	#5 (permalink)
Agent Nationaux Cricketer Of The Year Join Date: Jan 2011 Location: UK Posts: 8,280	I'm not permanent staff, so can't get into the government pension scheme.

01-10-2012, 01:48 PM	#7 (permalink)
stumpski Cricket Web Staff Member Join Date: Aug 2006 Location: Medway valley Posts: 5,276	Surprises me how many people at work aren't in the company, or any other scheme and think they'll be able to live on the state pension - a lot of them are guys under 30, who just aren't interested, or they say things like "I've invested in property" - which generally just means that they own a house. Well, unless you take in a lodger, you won't make any money from that. There's always the possibility of an inheritance of course, but with people living longer, many of us will be retired ourselves before our parents pass away.

01-10-2012, 02:05 PM	#8 (permalink)
GIMH Eternal Optimist Join Date: Dec 2005 Location: Shake my tree where's the apple for me? Posts: 43,622	My employer enrols you in the scheme automatically if you're over 25. You can opt out, but yeah. In my previous job I got contributions of 3% without having to match.

01-10-2012, 02:06 PM	#9 (permalink)
fredfertang Cricket Web Staff Member Join Date: May 2008 Location: high dudgeon Posts: 9,737	I'm doubtful as to how many will bother - I put a not inconsiderable amount into mine and have done for years, but it still doesn't amount to much - if my secretary put half as much into hers as I do in mine it would be a fair slice of her income, and she'd end up with half of not a lot - I'm not surprised she can't see the point

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