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

Yes! Long gone are the days where you could work your life somewhere and retire on a final salary from them. 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.

@MrsMurphyIWish Things changed a few years back, and providing certain earnings thresholds are met, employers have to enrol people into a pension plan. If the earnings aren’t met, then they have the option to join. Inertia sees opt out rates are really quite low. Whether the current contribution structure provides adequacy for retirement remains to be seen. I suspect not, and my issue with the latest NIC increases is that money would be better invested into pensions in the form of increased minimum pension contributions. Therefore helping people be a little more self sufficient.

My SPA is 68 for me (born end of ‘78 so missed out on the 67 age - gah!), I could claim at 58 with reduced amount. I’m not sure what is currently in the pot would be enough to live on from ten years (or even more in the age rises again). I’m not sure I can pay more unless I stop saving for DC’s. I do wonder what Gen X’s (and below) retirement will look like. I’m ‘fortunate’ that I have had a pension since 21 and been able to save for DC since birth. How many of my age haven’t been able to do that?

I wonder if in future they will be thought of in the same way as current retirees with lower pensions because they opted to pay Married Woman's Stamp or opted out of SERPs.

At the moment when you look at these how much do you need to retire on for different lifestyle guides the state pension is about half of what someone would want (depending on if they are a couple and what kind of lifestyle they expect) so even if we are happy to wait to 67-71 years old to retire we need to at least aim to match the income of the state pension.

Being able to target that, and beyond that to a retirement younger will depend for some people on what resources they have and for some people will depend on what current luxuries they are willing to forgo.

pensions schemes are also far less generous these days for younger entrants.

This is exactly what I'm planning for and opting to do this over moving to a bigger home and increasing our mortgage. DH and I are born in the same year and would both like to retire around 62. I'm hammering my workplace pension and also saving into ISAs. I have a SIPP on the side too. Just £50 a month into that in a high risk fund but that's my 'round the world' trip fund!

Big issue is fewer people will own their homes upon reaching retirement age

If this is a money purchase plan, and you have an online account, you can change your retirement age.
It just changes the underlying investments and the dates the de-risking starts to move your investments into lower risk asset classes slowly over time.
Irrespective of that you could still retire at normal minimum retirement age 55/57. It would just be smart to align your investments with when you plan to retire.

The idea of retiring is changing, with many people working on past the trad date. They are healthier and more fulfilled. So maybe that will help

Is your pension a final salary plan though? Or Career Average? The final salary pensions are the gold standard. It’s usually still accessible from 55/57 unless there’s a specific provision in the plan rules to say otherwise. The reason the benefits are reduced is because they’re expected to be in payment for longer. 60 and living to 85 = 25yrs payment vs 66 and living to 85 is 19. Your total benefits have a value, and if you’re trying to access that over a longer period, then there’s less available for you each year.

My occupational pension is tied to state pension age. I am wondering whether I should stop paying into and find another method to save.

I think your point is around how people would fund living costs up until SPA. But your private pension is accessible (currently) from 55 rising to 57 (pretty immediately if not already).

This is why it’s so important for people to save from a young age, because then you have more time to build something up.

The social challenge is that young people are more likely to prioritise saving for a house deposit, and leave their employer pension contribution on the table. Which is fair enough when the housing need is immediate, and the retirement further away than the years you’ve been alive yet.

The trouble I have with this is many private pensions are tied to state pension age. Mine is and every year I want it early is a huge penalty, plus you can only have it so many years before state pension

Yes, I agree OP. I’ve paid into a pension since I was in my mid-20s (now late 30s). I’ve now reached the point where I’m able to make some additional contributions but I am focusing on savings I’ll be able to access at a younger age (LISA etc).

I won’t get the state pension until 68 at the earliest and although I could claim my private pension before that it would be significantly reduced.

By the time I retire I suspect the pension age will be at least 70. I think that even if life expectancy doesn’t continue to rise, the current model is unsustainable so the government will still have to increase the pension age.

It's exactly the same proportion. 8% on £low gives the same pension as a percentage of annual wages to 8% on £high. If say, it equates to a pension of half your average earnings, then you get half your low wage, just the same as half your high wage.

Myself and husband have done this for 10 years until state pension kicks in.

I think state pension will be means rested at some point in the future.

Yep! This is happening everywhere with me too. Those of us without private pensions are bridging the cap with benefits. Thats another reason the benefits bill has increased. How the fuck a 60 year old carer is meant to roll a 30 stone man to reposition and hoist is beyond me. I'm out of it now, can't physicall do it.

I ‘retired’ recently - ie quit my job and live on private pensions until my state pension kicks in several years, so yes I’d already a thing.
However I know two 2women in their early 60s who quit their jobs and live on UC so unfortunately that is also now a thing

The problem is, contributions are “worth” more when you’re younger as it’s got time to appreciate, but that’s the time you can least afford it. I didn’t and couldn’t contribute in my 20s (pre-auto enrolment) – after rent and bills I couldn’t even afford the bus to work (London) in the last week before payday, I had to walk in. The Tube was a distant luxury, about as likely as a taxi!

Making up for it now in my 40s but you have to chunk away so much more and the only reason I can afford to is the sheer luck of enough housing equity, inheriting a car so no car finance, etc. Cost of living being what it is, how are people supposed to house, heat, and eat, and give up a chunk of their salary to something that seems far-off? Yes, you’re giving up free money by not contributing but for a lot of people it’s not a choice not to contribute, it’s necessity of the here and now.

I basically think you are right OP, although some people may be able to use PP income to reduce their hours until 67.

As you say, lots of people can't physically work as late as 67 and even if they can, the jobs aren't always available.

And Im hope you are not a telephone helpline call handler

They say our generation in our 30s would probably live longer as we don't binge drink to same degree and far fewer smokers..also there are weight loss drugs now.

I don't disagree with you OP but for a vast number of people in the public sector our work pension is only allowed to be taken without suffering big hits to it at state pension age which leaves a massive gap.

I've worked in both so have a private and public sector pension, now I pay in extra into my private pension in order to use that as a bridge. I'm late 30s so it's a way off for me but I don't want to work til I'm 70!

Many people I know my age (32) opt out. It's mad. One told me in her culture people don't believe in pensions. The other told me she would rather save for a deposit though tbh as someone who bought a below average priced flat in London, that 5% pension contributions isn't going to make a dent.

It's 3% from employer and 1% from government tax relief. So only 4% from employee. But yeah, 8% of minimum wage won't end up being much money.