Any pensioners going to spunk their pension on a Lamborghini today?

[wellquickwoody]

Ko

Ah, the last of the good times. Our parents (I'm late 30's) generation had the best of everything. Jobs for life, welfare, NHS, decent pensions, technology, didn't have to fight in WW2 but reaped all the rewards, sexual revolution, recreational drugs available, explosion of culture, nightlife, museums, galleries, food and restaurant revolution, cheap but quality property that was bought cheap and now worth a fortune, affordable foreign travel... The list goes on and on and on. Truly must have been the most privileged generation the world has ever seen. Good on 'em I say, the world will never see another golden period like that of 1950 - 2000. Never again.

Will you stop being so damn correct?!

 

[Lincoln Imp]

Judging by Jeremy Vine the other day, every pensioner that can afford it is going to whack all they have into by to let, ramping up the house prices further.

As you say, "...that can afford it". The average pension pot is far less than the cost of a buy to let property so the option won't be open to most. Some 55-year-olds planning to carry on working until 65 might cash in now, use the money to put down a deposit on a ten-year mortgage and then assign the rental income to pay it off but the vast majority of private pensioners will be where they've always been - thousands and thousands and thousands of pounds behind career public servants with their index-linked honey pots.

I spent a third of my still-continuing career in the public sector and know exactly how a public sector pension compares to a private one.

You know what? I don't resent them a penny of it. Until they start pratting on about how hard done they are.

 

[crookie]

I think the problem is that, while people like yourself can be trusted to be responsible with money, there are many others that can't be.

I predict that this will prove to be an incredibly expensive mistake in the future, that all of us will end up paying for, as we deal with an ageing population crisis.

A few facts:

• In 2008 the amount of pensioners outnumbered under 16's for the first time.

• Between 2010 and 2030 the number of people aged over 65 will increase by 51%.

• The number of people aged over 85 will double during the same period. 80's are the fastest growing age group.

...It will be difficult enough to look after the ageing population, it genuinely will become a real crisis, even without irresponsible short-term thinking from the government like this.

That the working population will have to pay to support through their taxes, whilst they are battling with university tuition fees/student loan repayments, high rental costs as they will never get on the housing ladder, and a struggle to save a decent pension as with the ageing population final salary schemes will be an unaffordable thing of the past. I disagree with a lot of what you post Mustafa but you are spot on here

 

[jimbob5]

I don't think I'm allowed to give advise but unless you are a miwyon air, desperado, about to peg it or a stark raving nut job. DON'T!

 

[beorhthelm]

Judging by Jeremy Vine the other day, every pensioner that can afford it is going to whack all they have into by to let, ramping up the house prices further.

this is pretty unlikely on a large scale, as people will be taxed on over 25% cash lump sum, and the procedes from the BTL will be taxed. its not a very tax efficient use of money held in a pension.

Allowing people to use their own savings as they want, how is that wrong?

its pretty condesending isnt it, worrying that people who have saved for decades will be acting recklessly at retirement. there will be a few of course, we'll see Mirror and Mail stories in the coming years, representing the 0.001% who spunked their pension. the majority will probably just pay off debts mortgage if they have them, go on a nice holiday and buy an annuity, just as they would have before.

 

[LamieRobertson]

I

this is pretty unlikely on a large scale, as people will be taxed on over 25% cash lump sum, and the procedes from the BTL will be taxed. its not a very tax efficient use of money held in a pension.



its pretty condesending isnt it, worrying that people who have saved for decades will be acting recklessly at retirement. there will be a few of course, we'll see Mirror and Mail stories in the coming years, representing the 0.001% who spunked their pension. the majority will probably just pay off debts mortgage if they have them, go on a nice holiday and buy an annuity, just as they would have before.

So right ..totally agree with your point ..it seems some believe these alarmist headlines from the Sun and Mail

 

[Herr Tubthumper]

I think the problem is that, while people like yourself can be trusted to be responsible with money, there are many others that can't be.

I predict that this will prove to be an incredibly expensive mistake in the future, that all of us will end up paying for, as we deal with an ageing population crisis.

A few facts:

• In 2008 the amount of pensioners outnumbered under 16's for the first time.

• Between 2010 and 2030 the number of people aged over 65 will increase by 51%.

• The number of people aged over 85 will double during the same period. 80's are the fastest growing age group.

...It will be difficult enough to look after the ageing population, it genuinely will become a real crisis, even without irresponsible short-term thinking from the government like this.

Agree.

 

[LamieRobertson]

I think the problem is that, while people like yourself can be trusted to be responsible with money, there are many others that can't be.

I predict that this will prove to be an incredibly expensive mistake in the future, that all of us will end up paying for, as we deal with an ageing population crisis.

A few facts:

• In 2008 the amount of pensioners outnumbered under 16's for the first time.

• Between 2010 and 2030 the number of people aged over 65 will increase by 51%.

• The number of people aged over 85 will double during the same period. 80's are the fastest growing age group.

...It will be difficult enough to look after the ageing population, it genuinely will become a real crisis, even without irresponsible short-term thinking from the government like this.

Disagree

 

[Soulman]

As you say, "...that can afford it". The average pension pot is far less than the cost of a buy to let property so the option won't be open to most. Some 55-year-olds planning to carry on working until 65 might cash in now, use the money to put down a deposit on a ten-year mortgage and then assign the rental income to pay it off but the vast majority of private pensioners will be where they've always been - thousands and thousands and thousands of pounds behind career public servants with their index-linked honey pots.

I spent a third of my still-continuing career in the public sector and know exactly how a public sector pension compares to a private one.

You know what? I don't resent them a penny of it. Until they start pratting on about how hard done they are.

Yep.

Plenty of people in old folks homes who enjoyed their lives, never saved and are looked after by the taxpayer. Plenty of others in these homes who did save and are now having to use the money to stay in the same homes.

 

[Publius Ovidius]

Looked at cashing in an old pension from 30 years ago..now worth 25k ....Mercedes c class looking good!

Still have four other pots which should see us over the pension years!