spend all your savings

[GreenerGrass]

Using the pension credit calculator on here and Even without the outstanding £100k mortgage, the government would give you £198.45 pw (needs a £205k pot)

But much/most of that £198.45 amount for most people would be covered by state pension, which isn't means tested.
The pension credit "top up" part of that amount would be much less, and would need a much smaller personal pension pot to beat. Not sure whether it would be £50k or more like 75k, depending on personal circumstances.
Plus you wouldn't get the state benefits until age 65/67/68 compared to 55 for a personal pension (bit optimistic there ).
But I agree with the general sentiment, a lot of people with 5 figure pension pots will be worse off than if they hadn't bothered at all. Not really "fair" is it.

[contractor79]

Why not? If your savings will never be able to fund an early retirement then what are you saving for exactly?

I have come to the conclusion that I will have to work in some form until I die - and I don't have any debts!

Carry a meagre year's warchest fund and blow the rest I think. The only rule is to not take on debt, as no savings and a load of debt (i.e. normal UK mindset which is a recipe for...what we have now).

No one ever wished that they had saved more.

I would say also put all your cash into your home. When you lose your job you can claim benefits if you have less than £16k savings. It doesn't matter if you own your home outright with no mortgage.

[contractor79]

Why not? If your savings will never be able to fund an early retirement then what are you saving for exactly?

I have come to the conclusion that I will have to work in some form until I die - and I don't have any debts!

Carry a meagre year's warchest fund and blow the rest I think. The only rule is to not take on debt, as no savings and a load of debt (i.e. normal UK mindset which is a recipe for...what we have now).

No one ever wished that they had saved more.

learn to use credit cards, as I am currently doing
buy stuff on 0% then transfer balance to other cards which have 0%
just keep moving the debt balance around

[VectraMan]

I spent all mine on the divorce.

hers.

I've been spending all mine on luxuries like food and rent, and I still have more saved than owed.

I can't wait to get back into overall debt and start gaining from the low interest rates and worthless currency.

[BrilloPad]

Why not? If your savings will never be able to fund an early retirement then what are you saving for exactly?

I have come to the conclusion that I will have to work in some form until I die - and I don't have any debts!

Carry a meagre year's warchest fund and blow the rest I think. The only rule is to not take on debt, as no savings and a load of debt (i.e. normal UK mindset which is a recipe for...what we have now).

No one ever wished that they had saved more.

I spent all mine on the divorce.

[TimberWolf]

Buy a house with money lent from people that haven't been born yet. Boomed.

-- Gordon

owed by

[TiroFijo]

Or alternatively invest your savings in the right things at the right time and make a fortune*


* not sure what the things are or when the right time is mind.

That's exactly what the people who invested in Bernie Madoff thought!

[mace]

Why not? If your savings will never be able to fund an early retirement then what are you saving for exactly?

I have come to the conclusion that I will have to work in some form until I die - and I don't have any debts!

Carry a meagre year's warchest fund and blow the rest I think. The only rule is to not take on debt, as no savings and a load of debt (i.e. normal UK mindset which is a recipe for...what we have now).

No one ever wished that they had saved more.

Using the pension credit calculator on here and choosing a couple, one of which is retired and in receipt of £50pw state pension, the other not, with a £100k outstanding on their mortgage.
http://www.thepensionservice.gov.uk/.../calculate.asp

Based on the information you have given us today, you may be entitled to a Pension Credit payment of £265.37 per week.

This is based on the following information:

•You are 65 or over.
•Your partner is under 60.
•You have savings of £0.00.
•No one else lives with you.
•You have an outstanding mortgage or home loan of £100,000.00.
•You have housing costs of £116.92 per week.
Your income

•State Pension: £50.00 per week

This couple would get £265.37 in pension + pension credit.

To obtain a £265.37 per week (£1150pcm) pension, you'd need to have a pension pot of around £275,000 (based on a 5% index-linked annuity).

So, if you feel that you will be unable to accumulate £275,000 in savings by the time that you retire then you may as well not accumulate anything. That said, you'd be at the whim of whichever government is in power then.


Even without the outstanding £100k mortgage, the government would give you £198.45 pw (needs a £205k pot)

[BrilloPad]

Or alternatively invest your savings in the right things at the right time and make a fortune*


* not sure what the things are or when the right time is mind.

Why not ask Harry Hindsight?

[TimberWolf]

Buy a house with money lent from people that haven't been born yet. Boomed.

-- Gordon

[TimberWolf]

Buy low and sell high.

[foritisme]

Debt isn't an issue in this country if you have no assets - just declare yourself bankrupt and start again !

[DimPrawn]

Or alternatively invest your savings in the right things at the right time and make a fortune*


* not sure what the things are or when the right time is mind.

[Shimano105]

Why not? If your savings will never be able to fund an early retirement then what are you saving for exactly?

I have come to the conclusion that I will have to work in some form until I die - and I don't have any debts!

Carry a meagre year's warchest fund and blow the rest I think. The only rule is to not take on debt, as no savings and a load of debt (i.e. normal UK mindset which is a recipe for...what we have now).

No one ever wished that they had saved more.