Author Topic: BBC UK Pension 'Advice'  (Read 2217 times)

Ukwhat?

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BBC UK Pension 'Advice'
« on: January 14, 2017, 05:02:15 AM »
2nd most read abc article today.... http://www.bbc.co.uk/news/business-38609422

Is it just me or is this massively missing the point and part of the 'problem'. With people expecting they should work 'forever'. I just don't get it....

daverobev

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Re: BBC UK Pension 'Advice'
« Reply #1 on: January 14, 2017, 01:11:24 PM »
What's wrong? It states pretty clearly: it's a walk in the park if you start early (14% of your income needs to be saved!). It gets harder. You'll get (something like) 8k a year from the state pension. You need to find 12k yourself.

You haven't said what you think is wrong with the article.

Ukwhat?

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Re: BBC UK Pension 'Advice'
« Reply #2 on: January 14, 2017, 01:57:02 PM »
Fair point... I didn't make any comments on it as the advice is just typical of the problem seen by me within the uk. The attitude of, right I will retire at 55+, I need to put away this much away every month from now on to make sure I have 20000 a year.

What about explaining to people that if you spent a bit less each year the amount you would need to put away would be reduced considerably?

What about explaining retiring early is an option and explaining the real calculations behind it.

I think it struck a nerve with me as personally in the uk I received no education on anything to do with personal finances  (forget maths) at any age, at all, ever. Reading articles like that twist what people think they should do.

Maybe I over reacted... I don't know.

BrokenBiscuits

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Re: BBC UK Pension 'Advice'
« Reply #3 on: January 14, 2017, 02:18:20 PM »
Looks to be good article to me for people who have not yet considered the cost of retirement. The expected returns are so poor in the calculations you may retire early if you put a bit more thought into it and run the numbers a decade or so before "normal" retirement age. Particularly if the markets have been kind or even just historically the same returns wise.

The BBC is never going to run a racy story suggesting that you can retire at 30.  Or tell you to live on rice and beans saving 75% of your income.

It's very much a vanilla news site.

daverobev

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Re: BBC UK Pension 'Advice'
« Reply #4 on: January 14, 2017, 03:57:25 PM »
Looks to be good article to me for people who have not yet considered the cost of retirement. The expected returns are so poor in the calculations you may retire early if you put a bit more thought into it and run the numbers a decade or so before "normal" retirement age. Particularly if the markets have been kind or even just historically the same returns wise.

The BBC is never going to run a racy story suggesting that you can retire at 30.  Or tell you to live on rice and beans saving 75% of your income.

It's very much a vanilla news site.

There was a story linked from the beeb on here of a woman who lives pretty much on rice and beans actually. A few months back.

Playing with Fire UK

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Re: BBC UK Pension 'Advice'
« Reply #5 on: January 15, 2017, 01:18:50 AM »
http://www.bbc.com/capital/story/20140404-yes-you-can-retire-at-40

http://www.bbc.com/capital/story/20151221-yes-its-possible-to-retire-by-your-40th

The bit I thought crazy about that article is that they assumed investment growth of 0.5% plus inflation, and that you'd only ever buy an annuity with the pot.

Quote
The pot would eventually be used to buy an annuity, or income for life.
Assuming it achieves investment growth of RPI inflation plus 0.5%, and assuming the eventual payout increases annually with inflation, as well as granting a 50% income to a surviving partner, the target should be reached comfortably.

BrokenBiscuits

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Re: BBC UK Pension 'Advice'
« Reply #6 on: January 15, 2017, 02:51:21 AM »
The first link is very different to the following 2. In the first they explain how you can save for retirement personally. An article for the every man.
 The other two seem to be more a spotlight on other people's lives , they are more akin to the celebrity magazines where they show you a lifestyle that is desirable but seems out of reach to the majority.

The writer of the retire at 40 is a free lance writer. I like her style but not traditional BBC writing.

We all know early retirement is possible but the article is written more of a showcase than a how to guide.

As the first is written as a guide they have been conservative with the numbers. The other two can be more outlandish as it's more of a spotlight on what others have done.