howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
inevitable of course but people in their 20's and 30's must look with horror at the amount of yesrs they will have to work before collecting their state pension.
http://www.dailymail.co.uk/money/pensions/article-2118193/BUDGET-2012-Retire-70s-Government-links-state-pension-life-expectancy.htmlGuest 640- Registered: 21 Apr 2007
- Posts: 7,819
The argument of course is that we are all living longer and the state cannot afford to support us all. Perhaps by the time those 30 year olds reach 70 it will be the new 60...but I dont know it all seems harsh.
I also heard the argument that it very much depends on the job you are doing. If you are 'down pit' 70 will seem a very long way off and very tough, if on the other hand you have a nice cushy and interesting job on TV or something and dont want to give up or be forced out, you might like it even love it. Its more likely that the chattering classes therefore will like this extension, where those doing harsher manual work wont like it.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Remember - people can still retire early without the State Pension provided they plan to do so. If financially sensible and starting at a reasonable age with managed expectations it is workable. You do not have to be rich to do so either.
This announcement was no surprise.
Guest 677- Registered: 8 Jul 2008
- Posts: 150
But Barry it's not just the state pension that's affected. The public service pension is in line with the state too and there are those of us who didn't start a private pension in our twenties because we were working in a service with a guarenteed pension (one of the reasons we join the public service cos it certainly isn't for the pay).
It's not just those in their 20's and 30's that are looking on in horror, those in their 40's that were looking forward to being able to retire in their early 60's after contributing to the work force for 40 years are also going to be horrified (I know I am). I appreciate what the government are saying about life expectancy but what about earning the right to retire and enjoy life when you've still got your health after spending most of your youth working. Governments today and in the future would have us work til our death...
It's not the man in my life, its the life in my man!!
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Steph - I am on the sharp-end of planning in this respect, it is what I do and I can assure you that there are many people in all walks of life who will be able to retire early without the State pension. Public sector pay is significantly better than private sector pay by the way - the average being 17-18% in equivalent jobs as it shown by independent studies.
Planning in this is not just a matter of pensions, these are one of the tools that are available but it is only one tool. Reducing debt early and not chasing rainbows up-market with ever bigger mortgages is certainly one thing that can help quite significantly.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
"Governments today and in the future would have us work til our death..."
Quite so.
This is indeed the status-quo and something much effort is put in for it to remain so, Stephanie.
I think something has been done over the last few years to enhance the pension payments to widows and widowers, given the vast savings from those who do not enjoy much time in retirement.
A snap-shot of the bright side: The 'creeping' privatising of the NHS may serve to rectify the problem of more living longer.
Feel better now, all?
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Nonsense - look at how longevity has increased since the age 65 was first introduced, it is very sensible to link the state pension age to that longevity. If people want to retire earlier then they must plan for it.
Guest 710- Registered: 28 Feb 2011
- Posts: 6,950
Where there is nothing there is at least less chance of nonsense. You make that point very well.
Were we all orphaned in our teens and now all remain un-orphaned into our fifties/sixties?
What have governments done with all the NI paid over the years? Frittered it all gambling at the Stock Exchange?
It is now, as I have said above, as it ever was, that governments hope against hope that people do not live to enjoy retirement. If people wish to retire before the state-set age they must enter the private stock-market gambling arena.
Yours as ever Barry is a circular argument, with your own career choice at the hub. You have made your 'right' choice now it is for everybody else to fall into line with it.
The benefit of all this stems from the fact that Britain no longer has heavy-industry and the down-side is that fewer and fewer people shall have steady employment.
However, we are bound to get around to Conservative growth strategy and it's recently renewed impetus at some stage.
Ignorance is bliss, bliss is happiness, I am happy...to draw your attention to the possible connectivity in the foregoing.
Guest 700- Registered: 11 Jun 2010
- Posts: 2,868
We should be glad that, on average, we can all be fitter for longer, to work if we wish, and retire on savings if we don't. Our parents didn't have the money to spend on luxuries like we have.
---------------------------------------------------
Lincolnshire Born and Bred
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
all the thinking is that our longevity will go on in the same way as it is now.
i doubt it, the present generation eat and drink far too much and are doing themselves no favours and the medical profession rattles on about obesity and liver problems the young suffer from.
beside all that nature has a way of fighting back when new cures for diseases are found.
Keith Sansum1
- Location: london
- Registered: 25 Aug 2010
- Posts: 23,942
oh well they get you very way they can
ALL POSTS ARE MY OWN PERSONAL VIEWS
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Tom - #8.
National Insurance is an income tax and the money goes into the general tax pool to pay for services. Where on earth do you get the idea it has been frittered away on the stock market? if only it had been invested instead of being spent we would not have any national debt!!!
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
pension age going up,pensions going down.what ever next.
Guest 696- Registered: 31 Mar 2010
- Posts: 8,115
With most young people going to school till they're 25, plus a couple of years spent on courses while on JSA, it's not surprising pension starts at 75!
Guest 698- Registered: 28 May 2010
- Posts: 8,664
#12, Barry, NI is also a tax on employment, that's the real iniquity of it. It puts the minimum wage up to £6.92.
I'm an optimist. But I'm an optimist who takes my raincoat - Harold Wilson
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
barry mentions about n.i all going into the same pot, i was told the opposite when i started work and that it was ringfenced for my health needs and eventually a pension.
Guest 653- Registered: 13 Mar 2008
- Posts: 10,540
NI contributions are used to calculate your pension - when you ask for a pension forecast, they look at your NI payments and if they aren't up to 39 years, you won't get the full pension.
That's what I was told the last time I requested a Pension Forecast.
Roger
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Roger - that was the case but no longer, it is a 30 year residency test for maximum pension and S2P, the earning related element, is being merged into a flat pension. NI being used as a method of calculation though did not mean it was reserved for that purpose, it is just an income tax (and Peter is right, a tax on jobs) that goes into the general tax take.
Howard - that was the big con of NI even if that was the intention it was only theoretical rather than in practice, they even dropped the pretence eventually.
Brian - you are factually wrong, pensions are going up, the triple lock has resulted in the biggest ever State Pension increase from April, that is if you are talking about the state pension of course. QE though is pushing down 15 year gilt rates on which annuities are based for private pensions.
Brian Dixon- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
barryw,the pensioners will be at least 200/300 pounds a year worse of due to the tax allowence freeze.so that makes me factully right.its called granny tax,
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Brian - you do not take into account the big increases in personal allowances anyway, no pensioner will actually be worse off at all. I have explained further and provide the figures on another thread where it was mentioned. I say there that it is a change I do not approve of but the fuss over it is way over the top.