It’s has been speculated for some time, that the UK may not be able to afford state pensions people born circa 1984 – 1994), or those born later. With the average life expectancy going up year on year, and the average cost of living rising year on year.
By the time they are getting to retirement age, which is probably going to be well into their 70’s, they are going to need to have enough savings to live. This involves ISA’s, Pensions, savings accounts, untouchable accounts until they reach maturity, and obviously, keeping enough money back each month for if ever there is an emergency.
30 something’s are in a strange and unfortunate situation. They may never be as wealthy as their parents, but will more than likely inherit when they are gone. That could be property, cash, expensive furniture or land they have acquired over the years. By rights, they are wealthy by proxy, but are only wealthy because their parents are.
There is a lack of jobs that pay worth a damn and most of us are struggling to keep up with risings rents, let alone being able to save to pay the deposit on a mortgage.
Bills, food, rent and even essentials like sanitary products are regularly creeping up in price. Energy is showing no sign of lowering in cost, and other essentials that we need for day to day living like transport are also going up. The rate it’s going, the GBP is going to be like the Zimbabwean Dollar. We’ll be earning £20million a year, but in reality, it’s only worth about £24,000.
So, I implore anyone and everyone, be you 16 or 60, start saving now, and save as much as you can physically afford. If you’re 60, you still have over a decade of work left, saving as much as you can, although it won’t amount to huge amounts, will allow you to have a slightly more comfortable retirement. Also, don’t be relying on your parents to leave you everything in their will.
You may get a nasty surprise. In the UK, debt doesn’t die with the person. The Debt goes to the Spouse to begin with, and when the spouse dies, the debt is taken out of the estate. This could essentially leave you with an estate worth £500,000, but in reality after debts and funeral costs are paid, you could be left with nothing. However, after the spouse dies, the remainder of the debt dies.
It’s a strange system, however, when your parents die, regardless of your wealth, or lack thereof, their debt dies with them, and only the remaining balance has to be paid from their assets, so don’t be afraid of having a healthy pension pot, it is yours, and yours only and no one can touch it, though some dubious companies may try to get at it.
When it comes to serious financial arrangements, such as pensions, wills and testaments, mortgages and large loans, such as business loans, always consult a professional to know your rights.