State pension age to increase to 75 WTF??

[mrselizabethdarcy]

Just seen this article. I'm so worried about the future.
www.mirror.co.uk/news/politics/tories-raise-state-pension-age-18953679

It is actually a problem in office jobs. Most jobs that I am aware of are demanding with a fast pace. Its not sitting at a desk and taking your time doing bits of work. Well maybe it is in a few places, but not anywhere I have worked.

Someone upthread mentioned FIRE I think?

I do still think we will see a change in spending habits. I know it doesn’t seem like it, given current consumer habits, but I think we are approaching the point where severe scrimp and save will start among people who don’t have to scrimp and save but would rather save so they can get off the hamster wheel.

Workplace pensions and private pensions can be problematic in many ways. General savings and overpaying mortgage seems more sensible to me, for those who can.

Is there any compensation when private or work pensions go bust? I opted out of workplace pensions for many reasons but I had my first bouts of major health troubles as a teen so always conscious of needing money for that kind of immediate problem.

Yes workplace and private pensions are protected Rosa www.pensionwise.gov.uk/en/protection

The problem with general savings is that you miss the pension contributions from the employer (if you have one) and they come from your taxed income. Mortgage over payments are fine but you need to start early to get growth and the 'magic of compounding' in your pot and focusing on the mortgage first reduces that.

It's not only people at retirement age this would affect. If people are working until 75 it means that the number of job vacancies will fall & so unemployment will rise, which means more benefits need to pay out.

A lot of older people lost a lot of money before they were protected.

But if everyone starts saving what happens to our service economy & the related jobs?

eeks yes. I am a scrimp and save person and many people say to me "oh the economy will collapse if everyone does that".

But surely an economy built on people buying stuff, and overpopulation, is a house of cards anyway? I've been in the habit of scrimping and saving since I started earning - I once took peanut butter and banana sandwiches to work for lunch and a boss genuinely took me to one side and asked if everything was okay!!

so I'm not going to start buying stuff I don't want and haven't got space for - but increasingly I see that people are taking on that kind of mindset, also for environmental reasons.

in terms of "services" - what do you mean? I prefer not to do eating out etc. I sometimes can't avoid it due to friendship circles and London distances, but wherever possible I have people over to my place and cook. What else comes under "services"? Probably they will always be propped up by the mega rich?

Ali yes, the employer contribution can be a thing but I've never had any of the impressive options I've seen described here. And what I have been asked to put in is too much. And I did start very early with the scrimping and saving. And I don't think the tax benefit is that great unless you are a higher rate taxpayer, IMHO. It's all risk and balance.

actually it's quite a strange world when we start asking ourselves "what if everyone starts saving".

Coffee is one thing that baffles me, for example. In our parents generation, would even a well salaried worker think "I must spend £4 on coffee on the way to work"? I don't get it.

No I am amazed at people spending that for a drink.

I don't like coffee & don't buy it however I've always assumed "coffee" spend isn't new money flowing into the economy it's just replaced money spent in pubs, etc.

Services encompasses a lot including restaurants, bars, opera, marketing, media. I'm not saying we should spend with abandon but millions are employed in industries that rely on disposable income.

eeks agree, but I don’t know if that will influence people. If you do already spend on stuff like that, and want to cut back, you’ll cut back.

If you don’t, you aren’t going to start.

Didn’t David Cameron try to urge people to keep spending to avoid a recession, at some point in his reign?

so unemployment will rise, which means more benefits need to pay out.

That will then lead to more people being shifted onto disability benefits to massage the unemployment figures

That’s likely the only way people needing disability benefits will get any respite from the hoops

*People are advised not to plan on relying on their state pension: make your own provision. 8% of my salary has gone into my pension since I started working, now (45) more goes in.

Anybody reading this needs to look at what they are doing for their pension (or income) for retirement*

And the low paid care workers who look after the elderly so the relatives of those elderly can continue to work and pay into these pensions. What are they supposed to do? How can they afford to put into a pension.

People were not advised to not rely on their state pension until recently. The message was to get a private pension to top up the state pension so you could enjoy life. So don't try and pretend that is an old message, it is not.

We already have the highest state pension age in Europe. If Poland can afford retirement at 60, why the hell can’t we?

Rosa yes, the employer contribution can be a thing but I've never had any of the impressive options I've seen described here. And what I have been asked to put in is too much. And I did start very early with the scrimping and saving. And I don't think the tax benefit is that great unless you are a higher rate taxpayer, IMHO. It's all risk and balance.

I appreciate that everyone's situation is different (and you don't know whether you made the right decision till you're dead, by which time you are past caring!) but I thought that even on the minimum contributions you effectively had your money doubled - you put in 4% of salary, employer 3% and tax 1% - it's difficult to get that return on your cash anywhere else! Though I do appreciate that it depends on your situation and it's no good if you need the money earlier.

sorry the first para of that is a quote from Rosa - bold fail!

I can see a lot of elderly looking after family children etc and families then supporting them financially

Really? i can see grandparents doing childcare becoming a distant memory.

And if you have the grandparents doing childcare because the parents cant afford to pay for childcare , how come the parents can suddenly afford to keep the grandparents. If you cant afford one you cant afford the other surely

I can see a lot of elderly looking after family children etc and families then supporting them financially

I think that will only happen if families end up (or are forced by finances) to live together.

A lot of older people lost a lot of money before they were protected

Yes Including DH and my DM.

Like a PP im a full time carer for my DH Hes 70 next birthday Im 46.

If you are under pension age and you care for a partner who will soon be pension age you will no longer be able to claim Pension Credit because of the age gap You now both have to be over state pension age to claim. I posted a thread in Money Matters and there were plenty of people cheering it on. Some are just too thick and/or resentful and greedy to look at the bigger picture and see that the state will be providing the care if the younger spouse is forced out of caring and back to looking for work. Its likely that the state will have to do the care which will also mean more beds being taken up in hospitals after falls. There were plenty of people cheering this on.

www.mumsnet.com/Talk/legal_money_matters/3479693-Changes-to-Pension-Credit

If most other EU countries can afford bigger pensions at a younger age than us then why can’t the UK do the same? We’re supposed to be one of the richest countries in the bloc!

I was thinking more great grandparents doing care, and yes I think extended families living together as it was before the post war changes...

Not saying the care will be great but if needs must..

Feeding an adult = £50 per week. Where can you get childcare for that price?

i did get a lot of support on that thread too from people who can see the bigger picture.

I had a financial adviser round last night to discuss my pension. He kept referring to something called the ‘active window’.

This meant that between the ages of 65 and 75 was where the majority of your pension would go. After this people become I’ll and more frail. They need less money then, as they aren’t going out as much.

He also said that it gets to the point where insurance for overseas travel starts to cost more than the holiday!

This obviously isn’t about everyone, but he used that as a basic rule