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

If you stop paying into it you lose the employer contribution so you would have to save a lot more to get the same amount. You.would essentially be turning down free money. You would also need to check if the scheme you are in is defined benefit or defined contribution. If defined benefit it would be even more crazy to stop paying into it.

I also think care in the home may include house value, yes I know Teresa May tried it and huge backlash but at the end of the day we need care workers so the market may force it.

A bigger problem for the state is that healthy life expectancy is also likely to fall

Healthy life expectancy hasn't improved in years, life expectancy improved because we got better at keeping ill people alive.

Similarly, I'm reluctant to upsize my home because I don't want to pay a mortgage in my 60s and I'd like be able to put more into long term savings. That period of 60 -68 worries me as I've seen people in my family really struggle financially at that point.

However, friends of mine are very blasé about upsizing/remortgaging for extensions etc because courtesy of SE house prices it's basically a given that they will inherit a good sum of money. One of my friends is an only child, her parents (and factory worker and a carer for context) own two properties which combined are worth in excess of £1m and my friend is on the property ladder. Plenty of other friends likely to inherit well into 6 figures. I won't inherit.

@TheMoment exactly. I know 3 older people who have gone private for operations and some relatives paid about 140k for carers in the home as they wanted to live out their days at home but the state offering was woeful.

Need to account for care costs being needed in the home figures too (different and additional to Carehome figures). And often just as expensive.

north/south decide too. Yes 18 months in a Carehome won’t wipeout a surrey pensioner’s estate but it would do easily on regular a family home in the north east - so no inheritance.

I agree that life expectancy is stalling and may fall - but that's because of obesity and other preventable health conditions. There is a widening gap in life expectancy for poorer vs better off people and I would expect that to worsen.

A bigger problem for the state is that healthy life expectancy is also likely to fall - so more people on disability benefits and greater healthcare use, which is even more expensive than paying a pension.

We are doing a combination of additional pension contributions over the workplace one and overpaying our mortgage, unfortunately just a small amount but it adds up, so that we don't have to worry about that payment.

I do find it all confusing and stressful! My grandparents are all in their 90s and going strong so if that's anything to go by I'm going to need to fund myself for a decent amount of time 🤣

@Pleasealexa look at current inheritance figures, you would be foolish to simply rely on that for a pension.

There is an average timeframe on how long care costs are typically needed for and I believe it's around 18months so inheritance will be significant for many.

Other health costs will increase, it's inevitable eg if you want that operation then it's a 3 yr wait unless you go private, you need care in the home? well they state offer is lacking so again you may have to pay.

Not correct sadly. Until recently when I finally managed to renegotiate my package my employer was paying around 1% of my salary. I was topping up a lot.

Not really because not everyone will inherit.
Care costs are only going to increase

The UK still has high home ownership, I think it's around 65% and it is a much higher figure for older people. So inheritance will be a factor for in many peoples pension provision. I know someone who hasn't contributed into a pension because they know they will inherit. It's a risky strategy but it is likely to provide income.

There is an average timeframe on how long care costs are typically needed for and I believe it's around 18months so inheritance will be significant for many.

There will have to be a cultural shift, too many people expect a state funded long period in good health where they will be off work, travelling etc.

The expectation is there because that’s what the current pensioners enjoy. I know several pensioners who received state pension from 60 and were / are still in receipt over 90. Now, I’m not saying they should have it stopped. But it has to be understood that it was only originally designed to be in payment for a much shorter period of time due to life expectancy.
This is also a generation who had access to the gold standard final salary pensions.

So people see what retirement looks like for the generations above them, and expect it will look similar for them.

It's ready the case isn't it? Most people save into a private pension. As we always hear the state pension is really to cover the bare minimum. If you want comfort you need your own pension as well.

Any government would be mad to means test the state pension because people will simply game the system.

Why would I pay over 10% of my salary every month into an occupational or private pension plus of course have to keep paying NI contributions every month if I'm then going to have less state pension than someone who chose not to make their own provision, or who has perhaps never worked?

I remember going to Florida in the 00s and some of the shop assistants were really elderly and frail

No, no teachers are. They’re all desperate to get out. I only know one who went past 60.

The rest got out in their mid to late 50’s.

There will have to be a cultural shift, too many people expect a state funded long period in good health where they will be off work, travelling etc. It's not sustainable, what is more sustainable is a more gradual reduction, dropping to part time work etc and phasing that out as you become less able to manage it.

And when should it shift?

I think this has been the expectation for a while. State pension will cover your frailest, most infirm years, those where you really cannot work at all.

I think we'll also see a rise in older people in part time work in retail, childcare etc.

There will have to be a cultural shift, too many people expect a state funded long period in good health where they will be off work, travelling etc. Its not sustainable, what is more sustainable is a more gradual reduction, dropping to part time work etc and phasing that out as you become less able to manage it.

Incorrect. Yes you can.

Yes, I think that's exactly what will happen OP. Agree with other posters this is part of the reason for the tax incentives and nudges.

The other side of the coin is inheritance. Few of my generation (1940s boomers) inherited much. As we retirees are the biggest cohort of homeowners, their value will pass down as we depart. Our DC are likely to inherit our home, and the homes of their inlaws unless we all need to move to care homes. This should help future generations, both individually and via IHT going into the public purse.

Not really because not everyone will inherit.

Care costs are only going to increase.

Who is going to buy all those bigger, family sized, expensive homes that come onto the market at a similar time?

It would be far more economically productive if people could earn enough through a decent wage & the ratio of prices/wages was lower rather than rely on future inheritance

The system has changed, and people are expected to be more independent with their finances. It’s a shame they haven’t updated the curriculum to reflect that and help the next gen be more self sufficient.

Very hard to be more self sufficient on less see wage stagnation.

If you have a public sector pension you can’t take it until state pension age anyway

The other side of the coin is inheritance. Few of my generation (1940s boomers) inherited much. As we retirees are the biggest cohort of homeowners, their value will pass down as we depart. Our DC are likely to inherit our home, and the homes of their inlaws unless we all need to move to care homes. This should help future generations, both individually and via IHT going into the public purse.

It's one reason why I am stopping at one (dh getting vasectomy) as it means we can live in a flat more easily (and in London, flats are 50% the cost of houses). People say downsize to fund retirement but my MIL who only has state pension isn't even doing that despite having a 700k house. We need to be mortgage free in our 40s ideally.