State Pension Age Rise Brought Forward

[mikey4444]

http://www.bbc.co.uk/news/business-40658774

Let me say, right from the start, that the Government had little choice but to do this, given the increasing life span of the population.

But if you are between 39 and 47, its not very good news. It could even get worse, if the age is extended to 70 !

[Islay]

Yup that's me - not too happy but I do have another pension so I won't be working till that age anyway!

[Cloverjo]

I am in that age bracket, and am not thrilled at the prospect of having to work til I'm 68, or possibly 70. However, I have to get there first.
I suppose it helps me in a way, because there's more time for me to find another job. I'm not mad about the one I'm doing now.

[mikey4444]

For a large number of people, the Old Age Pension is the only pension that they are going to get, come retirement.

[Cloverjo]

Every employer has to provide a pension for employees now.

[Islay]

I understand that Mikey and for a large number of people they will have to continue working beyond retirement age because they cannot afford to give up work!
But I chose to change careers after a vast amount of training at the age of 25 to a job with a crappy pay scale but a decent pension in order to take care of my old age.

That aside some people don't want to retire - my dear old granddad did not stop working until he was 75 and he was not short of a bob or too!! Navy then Coastguard and could just not give it working!!

[mikey4444]

Jo......Yes, but Employers are not obliged to put any money into the scheme, and nor are the Employees obliged to join. This new scheme is just a paper tiger I'm afraid.

[Islay]

Slightly incorrect Mikey - taken from the .gov site
By 2018 all employers must provide a workplace pension scheme. This is called ‘automatic enrolment’.

Your employer must automatically enrol you into a pension scheme and make contributions to your pension if all of the following apply:
•you’re classed as a ‘worker’
•you’re aged between 22 and State Pension age
•you earn at least £10,000 per year
•you usually (‘ordinarily’) work in the UK (read the detailed guidance if you’re not sure)

[mikey4444]

Islay...I am glad for your Grandad, but people may not want to continue to work until they 70. Nor may they feel fit enough to carry on working.

Mortality may be getting better but Morbidity is getting worse.

[Baldric]

I was lucky, retired just before my 63rd B'day, got my pension on 65th B'day last year and the income from our Rentals kept me going in the meantime. And like my Wife I have a P/Pension as well as the State one.

[Islay]

My father has retired 3 times!! Tried it at 45 lasted 3 weeks! Tried again at 55 and finally at 65 managed it!

[New Judge]

"I was lucky,..."

Bit like me, Balders. The harder I worked the luckier I seemed to get :-)

[mikey4444]

Islay...you are correct. The conditions for the Automatic Enrolment Pension have changed since the scheme was first mooted.

But the funding by the Employer is so small as to make very little pension at retirement age, unless Employees themselves make substantial contributions during the years up until Pensionable age.

And if people join this new scheme later on in their careers, then very substantial contributions will need to be made.

In my day, a "Final Salary Scheme" was about as gold-plated as they could come. But this new scheme is a Money-Purchase Scheme, with no guarantee of a certain monthly pension.

What young people need to consider is making bigger contributions, at an early age, then they are now, and that may require some hard choices....a bigger and better Mobile phone, or an income in retirement.

[pixie374]

It isn't even that simple, mikey. At one point OH and I decided to start pensions. He was allowed one, I wasn't- even though we were paying both from a joint account, because he was working and at that time, I was looking after our children at home. They literally just said no. I still don't have anything at all and will probably have to rely on savings. Luckily, I hate the thought of everything retiring- but I doubt I will ever be able to.

[sunny-dave]

As is so often the case, this new bit of 'austerity' will only affect the squeezed middle - who (if I am representative) are getting sick and tired of being held responsible for all society's ills and even sicker and tireder of being made to pay for them.

It won't affect the rich - their money is nicely hidden away and they can pay (or not pay) tax pretty much as they want and retire when it suits them.

It won't affect the indigent/improvident - it makes naff all difference whether any of their benefits are marked as 'pension' or not - they still get the same income and can work (or not - mainly not) as they choose.

I'm not affected by this particular change (old enough and provident enough to be insulated from it) - but I know a lot of 'the next generation' who are beginning to wonder if it's actually worth the effort of busting a gut to provide for themselves, when some speccy nerd in a wonk tank can then decide to move the goalposts so often that hitting the target is next to impossible.

grrrr

(not)sunny dave

[mikey4444]

Pixie....I am not sure how old you are, but anybody can start a stakeholder pension, even if you are not working !

[pixie374]

43. That certainly wasn't the advice we were given from the financial advisor at the time. Anyway, as sunny dave has said, I have pretty much realised I will never get one no matter what, so there isn't much point.

[mikey4444]

SD...I understand your attitude, I really do ! But with life expectancy on the increase, the books have to be balanced.

Another fly in the ointment is the low wages now being paid to so many people. If you are on the minimum wage, then saving for a Pension may not even be possible.

[ToraToraTora]

well if we had less WSS to pay for perhaps we could afford to be more generous with the state pension.

[Baldric]

NJ @ 18:20, ain't that the truth?

[ToraToraTora]

sunny dave, bang on, BA material that one.