I read this in am email, full article here: https://www.moneywise.co.uk/news/2018-0 ... m_content=
State Pension Shortfall Day: Couples on state pension run out of money Figures from the Office for National Statistics (ONS) show that the average retired couple’s spending is around £25,500 a year, while two full state pensions provide just £17,092.
This leaves a shortfall of £8,367 a year, meaning retired couples will have to plug the gap with their own savings or private pension.
Who are these pensioners who are the average? Do they really need to spend £25,500 a year to have a decent life?
I mean they have no children to raise, the "average" pensioner is the one most likely to be a homeowner with no mortgage to pay.
Take the average under 40, children to raise, mortgage or rent to be paid. I bet they would love to have £25,500 a year after the mortgage/rent, childcare and all the other costs of having children is paid. And of course the food bill for a family of more than 2 will be higher than that of a 2 person pensioner household.
But there are also these sad facts in the article: “Four in 10 pensioner homeowners eligible for state support are failing to claim any benefits, while a further two in 10 are not receiving their full entitlement – this can add up to a few hundred, and in some cases a few thousand, pounds a year that would make a big difference to people’s lives.
These will be the ones who are having to choose between heat and food in the winter.
And frighteningly “We know that seven in 10 access their pension before age 65 and that accessing pension pots early has become ‘the new norm,’ yet this could significantly reduce the amount of income people can achieve in later life.”
The Government, stupidly IMHO has allowed people to withdraw money from their pension pots and many will live to regret that decision.
Then there is what to me is the new PPI, withdraw money from your property. Basically it is a mortgage where the amount you owe grows year on year as you do not even pay the interest on the loan. What will happen if house prices do not grow fast enough? Or when the next house price crash happens, and it will happen at some point no matter what the Brexit outcome is.
And of course for the unlucky ones most of the value of the property will be used for care costs in a home for the elderly.
If there is little equity available when the property is sold then the cost will fall on the taxpayer.
Today's under 40's have less job security, lower real pay than 10 years ago, if they can get a mortgage the cost of the property will be many times in real terms what today's pensioners paid.
So do I feel sorry for those who pensioners who have £25,500 a year to spend? Of course no. My sympathy goes to those who struggle to eat and heat. Many of them will be pensioners but many others will be in full time work.
Keep smiling because the light at the end of someone's tunnel may be you, Ron Cheneler