Originally Posted by
Mick P
The simple truth is that baby boomers, of which I am one, have really screwed the system to our advantage. We paid very low contributions on the basis that we paid in to fund the retirement of those then retired. Like you say, they keeled over soon after retiring so we paid in bugger all. If my memory serves me correct, the NI was capped at 9% for most of our working lives.
We also paid about 6% into a final salary scheme for 40 years max and will probably take out a 50% of the final salary for 25 years. The maths do not simply add up.
Because baby boomers always vote, both political parties are increasing the state pension which is today higher in real terms than it has ever been. I will agree, however, that at about £170.00 pw, you are not going to get fat on it.
However in about 10 -15 years time, most baby boomers will be dead or near death and the number of retirees will fall dramatically. This means that the voting base who keep pensions high will have decreased and I would guess that HMG will then slowly allow the pensions to devalue. So if you are in the 35 - 50 year old bracket, you had best make your own provision or expect to have an impoverished retirement.
For youngsters to rely on the state pension is pure madness.