To think workplace/private pensions will be used like this in future?

Indeed. That generation had the best of everything and that won't happen again. It was just a blip. Please don't think this is a criticism of that generation it's not, it's merely an observation.

@Pinkdaisie ok let me rephrase that. Effectively I will be unable to take it early because it will not be affordable to take the hit and do so for me and I suspect many others. I am starting to take the idea of doing less work at work very seriously to ensure I can sustainably meet the longevity of work career that is now expected of me. Things like taking desk and screen breaks very seriously to ensure I avoid the muscular skeletal issues with desk based work and sedentary behaviour which I am already experiencing!

My pension is linked to state pension age so I’m screwed no matter what. I need to top up with a private pension if I want to retire early. And I do. It isn’t a lot for topping up but I can see how poorer people won’t afford it. I refuse to work into my 70s even if I get a £50-60k/pa pension at the end! Early retirement please! 🥹

Because there is always a group who don't care about their DC's, who can't think beyond the end of next week, refuse to pay taxes and will work in the black economy (or not work at all) rather than contribute to society.

Exactly and I agree. It's easy for people to think they are doing ok but actually if the percentages are all just on the qualifying earnings it's not great. I'm now paying 8% with employer matching that so much better now.

All my Nursing friends are taking their big lump sums at 55 and retire and returning. My fb feed is full of them taking amazing trips. My sil has set aside her lump sum as house deposits for her kids.

I think the point is there is a middle group with just the same higher income in their working years who decide to spend rather than save in a pension.

Unless the suggestion of means testing means looking back at a lifetime of HMRC records to decide who could have afforded to support themselves in retirement but decided not to, rather than looking at what savings/income people have when they hit retirement age and paying out on that basis.

Agree with others that

a) bridging the gap between retiring and getting the state pension happens now. Having been made redundant at 61, I know how hard it can be to find a job in later years

b) 8% over the full length of a career, compounded up, builds up. The important thing is to pay in constantly. Don't go part time unless your DH can pay into your pension as well as his. Easing back on the career when DCs are at school is far more costly than most people realise.

Ah right, not illegal just a shit employer then. I think all employers should have to pay on full earnings. As it stands the only have to pay pension contributions on earnings over £6240 which is ridiculous. Tbey also dobt have to pay anything on earnings over £50000 ish.

They were paying 3% of qualifying earnings which worked out to slightly less than 1% of my actual salary

Because you will have so much more income compared to those who didn't .

I don't understand this mentality. E.g someone spends a life on benefits won't have anything to show for it. They won't own a home or car, no savings/investments/pension, nothing of value to leave their kids etc.

Compare that to someone with a decent income, own house, car, savings ,pensions, holidays to Florida, expensive hobbies, 'nice' things etc.

If you have the choice, which would you prefer?

Well, yes that is the law. You can't take it more than 10 years before state pension age. At the moment it is 55 rising to 57 in 2028. That is the case for any pension exempt in certain circumstances. The reply was to a pp saying that you cantvtake a public sector pension before state pension age which just isn't true.

Pension contributions are much better than Lisa. Wouldn’t do that

The state pension was never designed to exclusively pay for your retirement. You always had to top it up with savings.

Same now but even more so. You wouldn’t want to live on the state pension!

DH and I and a few of our friends have retired at 55/56 in the last couple of years we must be some of the very last to manage DB final salary pensions.

There are always outliers but overall life expectancy as a group is lower the further down the economic scale you are. It has always been the case in every generation.

Stats pulled directly from the ONS

• Male life expectancy at birth in 2012 to 2016 was highest among higher managerial and professional occupations (National Statistics Socio-economic Classification (NS-SEC) Class 1) at 83.6 years, 5.5 years longer than routine occupations (NS-SEC Class 7) at 78.1 years, and 9.1 years longer than males not classified to a socioeconomic class (Unclassified) at 74.5 years.
• Female life expectancy at birth in 2012 to 2016, was highest in NS-SEC Class 1 at 85.5 years, 4.0 years longer than NS-SEC Class 7 at 81.5 years, and 5.7 years longer than Unclassified at 79.8 years.
• In 2012 to 2016, the slope index of inequality (SII) in male life expectancy at birth between the least and most advantaged socioeconomic classes (excluding NS-SEC Unclassified) stood at 6.4 years, 1.2 years narrower than in 1997 to 2001 (the widest point in the time series) when it had stood at 7.6 years.
• In 2012 to 2016, the SII in female life expectancy at birth between the least and most advantaged socioeconomic classes (excluding unclassified) stood at 4.9 years, 0.5 years narrower than in 2002 to 2006 when it had stood at 5.4 years.

The overall rise in obesity which has escalated in the last 20 years will probably see a further drop in life expectancy, there is a direct correlation between obesity and poverty.

Then there is being alive but being healthy, link to GOV data about HLE. Unsurprisingly the SE leads the way as overall there is more money there.

https://www.gov.uk/government/publications/mortality-insights-from-gad-december-2024/mortality-insights-from-gad-december-2024

I'm not convinced the current generation will live longer than their parents/grandparents and due to SRP ages they'll pretty much have to fund their retirement with savings and private pensions.

My Grandparents/parents were physically fit, healthy weight, food was generally basic meat and veg, nothing processed.

My GC have to be dragged out the house, driven everywhere as roads are so busy now, could easily spend 12 hours a day on fortnite given half a chance, no playing out on their own with friends. They snack all day, fussy eating pandered to, any veg has to be hidden in sauces etc.

Hopefully I'll be proved wrong but I suspect our longevity peaked with the generation who are around retirement age now.

I retired at 62 and did this, I think quite a few people do

Yes you can. It will have a reduction for each year you take it early but you most certainly can take it before state pension age.

Most are subject to a floor age before which you can't take it at all, unless in exceptional circumstances, and this floor age has been tending to rise.

I would caution people to have other savings if wanting to retire at 60. There are laws about when you can take a pension out and nothing stopping the government restricting how young people can.

I havea separate savings pot which i intend to maintain control over, so its not in my main pension. Its there for me to draw on if i want to reduce work and the government make it harder for me to access my private pension when i want.

How recently was this? It has been the law in the UK since 2019 that the employer contribution is a minimum of 3% of qualifying earnings. If they were only paying 1% after that point they were acting illegally.

Juat because teachers no longer feel able to teach full time in to their 60s doesn't mean they won't be able to work at all.

They could do something different. Tutoring, retail, working part time exam marking or in libraries. We have to stop thinking we can't step down, or that work at a lower salary is beneath us. We may be less productive in our 60s and may earn less but it doesn't mean earning nothing. Many people at that age no longer need to earn peak salary, they have finished childrearing, may have finished paying a mortgage etc, so many just need part time income at a lower wage to bridge the gap to full retirement.

@TheMoment agree, the public don't want to hear the truth. I mean some aren't even aware we have an ageing population & think the feckless are churning out babies 🤷🏻‍♀️

That happens now and has done for years. My father in law retired over 20 years ago, early 50s, amd my dad did this 12 years ago late ish 50s. It's nothing new, it's always been the case. Now there is alot more awareness for private pensions as you have to choose to opt out so really, this trend of early retirement can continue. My private pension is changing to 57 from 55 as they are clearly struggling to keep people paying in longer term too.

Yes you can. It will have a reduction for each year you take it early but you most certainly can take it before state pension age.

Agree. I think there will come a time soon where a house has a charge on it from the council and when house sold some is then used to pay back any fees including care in the home which is very expensive - I was shocked as it’s not often discussed (unlike Carehome which are!).

All the politicians just kick the can down the road (don’t blame them tbh) as don’t want to be abused or be a meme etc - as the public will hate it - but there is absolutely no money.

without social media and media changes in the world was like the 80s/90s I think politicians would just tell the truth more easily and say was is needed but due to media abuse etc it’s easier to not be honest and just ignore as it’s what everyone else does.