[Closed] Raise in state pension age

Have you read Catch 22? Where as they take off on the 25th mission, they raise the number to 30? Then 35? Then 40?..... and so on

This is now the template for U.K. Pensions policy.

You're never going to retire.

Sorry

If only there was another DUP magic money tree.

Yeah, wake up call for all your kids.

Work until they die.

You on the other hand at least get time to dribble into your cornflakes before you pop off.

Bugger, ah well, I never suspected the last shift was going to be the last one and there's a lot of goverments and economic shifts to happen between now and then.

Thanks **** I'm 50 next week 🙂

Have you read Catch 22? Where as they take off on the 25th mission, they raise the number to 30? Then 35? Then 40?..... and so on

Can you dumb that down a touch for me?

But there wont be any jobs so whilst you cant retire you also cant work.

Universal state income and cheap housing is the only way it will work.

6 weeks on the right side of the line. For now.

Spend all your working life paying the mortgage off then retire and borrow against your home for equity release, which is mortgage that is paid off when you die, leaving your kids with nothing but your moldy collection of bicycles with out of date standards.

They (whichever government) made a mistake when they fixed it at 65. They should have specified it as X years younger than the average life expectancy. The advantage would be that the costs of pensions would be relatively static (allowing for inflation and population growth)

P-Jay - Member

Can you dumb that down a touch for me?

The number of missions required before you can be discharged increases as soon as you hit that number, thus never reaching it.

Well worth a read in my opinion.

Why, bear with me, hasn't the pensions age been reduced ?
Forget the NI and Tax revenue for a moment, what would be wrong with reducing the age by say 10 years ??

Well amount X goes into the pot and has to last Y years so if you increase Y then there's less money per year until you pop your clogs. If X/Y is to stay the same then more money has to be put into the pot whilst people are at work. The problem is that to finance the current pensions you are relying on the monies put into the pot in the past which isn't enough so raising the pension age is being used to balance the books.

They (whichever government) made a mistake when they fixed it at 65. They should have specified it as X years younger than the average life expectancy. The advantage would be that the costs of pensions would be relatively static (allowing for inflation and population growth)

Universal retirement is a perverse idea anyway. Why waste useful people just because they've been around a long time.

Why, bear with me, hasn't the pensions age been reduced ?
Forget the NI and Tax revenue for a moment, what would be wrong with reducing the age by say 10 years ??

Pensions are currently at least a third of the welfare bill.

Were you to reduce the age, you'd suddenly have a lot less taxpayers paying a lot more welfare.

Well amount X goes into the pot and has to last Y years so if you increase Y then there's less money per year until you pop your clogs. If X/Y is to stay the same then more money has to be put into the pot whilst people are at work. The problem is that to finance the current pensions you are relying on the monies put into the pot in the past which isn't enough so raising the pension age is being used to balance the books.

I think the problem is that a lot of it hasn't been put into a pot, but rather spent - relying on tax income from the current set of tax payers to pay for the current pensions. This is fine as long as there are sufficient tax payers, but when the baby boomers started retiring that was no longer the case.

Universal retirement is a perverse idea anyway. Why waste useful people just because they've been around a long time.

there's nothing to say you need to retire when you reach your state pension age.

Why, bear with me, hasn't the pensions age been reduced ?
Forget the NI and Tax revenue for a moment, what would be wrong with reducing the age by say 10 years ??

More money coming out, for longer. Obviously less going in but you said forget tax and ni.

One upon a time the U.K. had a private pension system that was as good as any in the world, until Gordon Broon had the brilliant idea of taxing private pension schemes to the tune of £5 billion/per year.
Oh and he sold off our gold reserves when gold was at its lowest level in god-knows how long.
That's what I call fiscal responsibility. 🙄

Universal retirement is a perverse idea anyway. Why waste useful people just because they've been around a long time.

But thanks to medical advancements we're all going to have many years of being alive but mostly crippled with ailments, so not that productive.

Although if they keep up with running the NHS into the ground, life expectancy in the UK may start going into reverse, which will help lower the pension bill.

One upon a time the U.K. had a private pension system that was as good as any in the world, until Gordon Broon had the brilliant idea of taxing private pension schemes to the tune of £5 billion/per year.

A drop in the ocean.

life expectancy in the UK may start going into reverse, which will help lower the pension bill.

It already has according to todays news.

Since most are in sedentary jobs these days there's no reason to stop work at 65 (or whatever) if you are able and willing to do it. The longer you leave your pension pot before drawing on it the bigger your pension will be.

In 1970 the UK life expectancy was 72 so the government only needed to fund 7 years of retirement - you'd be completely shot after a lifetime down the pit or whatever. With life expectancy now at 79 that's a doubling of the amount of money needed for pensions.

Re, re, reti, retir, retirm, retirm, retirme.... No sorry, I don't understand.

Why, bear with me, hasn't the pensions age been reduced ?
Forget the NI and Tax revenue for a moment, what would be wrong with reducing the age by say 10 years ??

The cost - 750k people are born in the UK every year, on average, it's growing of course but for the purposes of this.

If we reduce it by 10 years and assuming all 750k people live till retirement age and choose to retire an extra 7.5m people can retire

State pension is £119 per week, that's £10k a year, times that by 7.5m and it's an extra £77Bn a year in pensions paid out.

On the other hand the average UK Full time salary is £27k which comes with an annual tax and NI cost of £5,300 again times that by 7.5m and you get a loss of £39Bn

So to reduce it by 10 years would cost the UK £116Bn a year, it's currently 'only' £85bn a year.

Okay that's a lot of assumptions, but you get the idea.

We need a nice war or some disease to decrease the population a bit and reduce the future pension bill. 😐

We need a nice war or some disease to decrease the population a bit and reduce the future pension bill.

Be careful what you wish for

(I have been saying the same thing for 10 years or so though).

One upon a time the U.K. had a private pension system that was as good as any in the world, until Gordon Broon had the brilliant idea of taxing private pension schemes to the tune of £5 billion/per year.

No, the previous Thatcher government sounded the death knell for company schemes when it introduced tax on surpluses. The result was that companies took contributions holidays and had absolutely no protection against increased life expectancy and bad markets, so they closed their schemes.

Oh and he sold off our gold reserves when gold was at its lowest level in god-knows how long.

Pretty soon the concept of retirement, as enjoyed by the boomers (winter hols in Tenerife, weekends in the lakes, golf, and changing your car every couple of years), will be viewed as a quaint, unaffordable anomaly.

Future generations will stare in disbelief into how we all got hoodwinked into that particular pyramid scheme. I know I do

You need to wise up people. We're simply not going to retire. Well... unless you fancy living in abject poverty. I'm in my 40's and faced up to this reality quite some time back

Luckily, once they've privatised the NHS, and life expectancy goes into reverse, thats not an issue you'll have to worry your pretty little head over

Chin up! 😀

One upon a time the U.K. had a private pension system that was as good as any in the world, until Gordon Broon had the brilliant idea of taxing private pension schemes to the tune of £5 billion/per year.
Oh and he sold off our gold reserves when gold was at its lowest level in god-knows how long.
That's what I call fiscal responsibility.

sigh

Someone could really do with check what the facts actually are. Whilst all that is true it is rather out of context as it ignores the fact that previous Tory chancellors made similar moves on pension pots. Then there were the pension contribution holidays that were allowed under I believe Tory governments. This of course is as nothing to the proposals that have been mooted regarding either reducing, or worse eliminating, the tax relief of pension contributions.

As for the whole "gold" thing, this was a policy that wasn't unique to the UK (gold is useless asset anyway) and if you feel like using hindsight to cherry pick things how about the auction of the mobile phone 3G licences that raised a staggering amount of money for the UK.

It already has according to todays news.

I thought it had just stalled improving...

I reckon its a racing certainty that any day now the private pensions industry is going to be exposed as a scam that is going to make the Sub-prime banking, PPI mis-selling business look like a minor accountancy error

Is the idea of this that us young whippersnappers die before reaching state pension age? Remember, if we're all at work there's going to be no one to visit you in your care homes.

Good luck... 🙂

I do wonder sometimes if binners' approach is right. My mum n dad were both looking forward to their retirement and had been paying into pensions all their working lives. Unfortunately they both died of Cancer before retirement so were never able to enjoy it. I'm chucking 6% of my gross into my pot right now and my employer matches that. I could stop that contribution and enjoy that little bit of extra money, but what then if I do end up living and have a rubbish pension as a result. I don't much fancy being old [i]and[/i] poor!

You need to wise up people. We're simply not going to retire. Well... unless you fancy living in abject poverty. I'm in my 40's and faced up to this reality quite some time back

I am, in 5 years time, wife retired last month. Happy days.

P-Jay - Member

Can you dumb that down a touch for me?

The number of missions required before you can be discharged increases as soon as you hit that number, thus never reaching it.

Well worth a read in my opinion.

There you go. You may be facing up to reality that you'll spend your twilight years sloshing about in your own piss in some desolate warehouse for old giffers, but you've had a recommendation for a fantastic book! Its my personal favouritest ever! And most of its comments on capitalism, warfare, and pretty much everything else are just now truisms.

My pensions/missions before rotation analogy will definitely be the case

jekkyl - Member

Spend all your working life paying the mortgage off then retire and borrow against your home for equity release, which is mortgage that is paid off when you die, leaving your kids with nothing but your moldy collection of bicycles with out of date standards.

I’m told ‘downsizing’ doesn’t help anymore either, the market for retirement flats and bungalows is so oversubscribed now you’re getting half the room for the same money – a mate’s parents just sold a 4 bed in a lovely area and bought a flat by the sea – they kept £10k in cash from the deal.

I've noticed an explosion in adverts for equity release recently and apparently "you still get something to pass on to your loved ones" 7/10ths of **** all I suspect.

I saw this advert with this lovely old couple who looked like that already had a comfortable life no doubt selling off half their home or more on a terrible deal (because who cares) to fund a cruise or two - it felt like the final insult (after Brexit) from the boomers. We’ve got a housing market so broken that many experts believe the only thing that can fix it is when all the boomers die and pass it to multiple off-spring and even that seems less likely now.

I, for one, is praying for a flu epidemic ha ha.

Universal retirement is a perverse idea anyway. Why waste useful people just because they've been around a long time.

Good job it doesn't work like that then.

Yeah, wake up call for all your kids.

Work until they die.

Or they will vote for party that looks after people and will change it to 65 again.

I'll have enough tucked away by the time I'm 50 to give me atleast £1k a month which is more than enough for me to live a good life (no wife or kids). They can keep their shitty state pension, I'd rather kill myself than work to my 70's.

Or they will vote for party that looks after people and will change it to 65 again.

Given we're living longer (or were) and the demographics are changing in Western Europe (less young, more old), the status quo is getting more and more expensive.

If we insist on not letting in immigrants (who both breed and boost the economy), the demographics / economics will get steadily worse.

So, something will have to give at some point.

Arse biscuits. That just caught me and the Mrs then.

Not very clear from the Beeb exactly what that means though.....'be phased in between 2037 and 2039'. What does that mean? That they have not sorted the exact date of the change or some people will be switched and some people not? Not very helpful.

I plugged my details into the gov.uk link on the BBC page and it has me getting it on my 67th birthday still. No idea if that's been updated.

Something I really must check - when the state pension age changed did they also change the age at which you could draw your lump sum to buy an annuity (or whatever else you can do with it) from a private or workplace pension without penalty. I guess it might depend on the specific pension.

In years to come people will look back and laugh at the ability to retire at 65 (and 60 for women, which seems even more daft now)

Drac - Moderator

Or they will vote for party that looks after people and will change it to 65 again.

I do hope so, but I doubt it. I fear that now this is in, it'll stay in forever. Such as the political system for funding anything is less of a balance and more of political points scoring.

The reason I posted about a reduction in retirement age is a simple one. With more Oldies not working, potential for Childcare goes up (I did say Potential for a reason) thereby saving Family cost pressures. Also those that have chosen a Manual Job over the years are pretty much worn out by retirement (huge assumption) I know about the Funding side, I'm quite aware of that.

So, what will happen about those that release Pensions before maturity? We know thats already happening and the need to buy an Annuity is doomed, so are Mums n Dads really helping out siblings or buying Merc 4x4's and off on a River Cruise?

We need a nice war or some disease to decrease the population a bit and reduce the future pension bill.

P-Jay's flu pandemic has more chance of succeeding.

Another years work for me, now 23 years to go.

I'm ****ed off with this county and the ****ing conservatives. I'm now focusing on plan to get the family out of here to somewhere less miserable looking going forward when the time is right.

That's be perverse, as then there would be less paying into 'the pot', (there is no pot, it just comes straight out of taxation) to fund all the coffin dodgers who are still taking out.
P-Jay's flu pandemic has more chance of succeeding.

So hypothetically if you had a chance of retiring on a full pension at 60 but to get that deal you had to sign up to euthanasia at 80 if you were still around would you take it? Clear the dead wood so to speak for a few more years released from the drudge of work whilst still fit and well enough to do something good with the time. Got to confess I might go for it.

Another years work for me, now 23 years to go.

Theoretically, I avoided it by being born two weeks too late. In reality, I suspect binners is right: it will keep going up for all of us. I'll keep paying off the mortgage and paying into my company scheme, in the hope that I can retire early and manage without a state pension for a few years.