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State pension age to increase to 75 WTF??

316 replies

mrselizabethdarcy · 18/08/2019 12:03

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

OP posts:
BagpussAteMyHomework · 21/08/2019 22:12

I don't think auto enrolment is a bad thing

While I agree in principle I am concerned that employers will be more tempted to pay cash. McDonalds can be regulated but what about nannies and cleaners, bar staff and decorators?

ShippingNews · 22/08/2019 03:14

It's hard to get a job in your 60's now ! I'd hate to be job hunting in my 70's.

EngTech · 22/08/2019 06:56

Shipping

I got my present job at 61

Why? My boss who is a youngster 😁 wanted an oldie in the team with actual experience 👍👍

Interested in this thread?

Then you might like threads about this subject:

IceniSky · 22/08/2019 07:34

What is it with baby boomer hate? My parents are boomers. My dad in his 70s works part time. Working 4 days next week, having to travel.

My mum and stepdad and retired. Ill health in a shabby bungalow because they downsized, assists with grandkids care and elderly relative care, looking to draw equity out of their home. I'd be so very happy if they were these mythical baby boomers.

CuriousaboutSamphire · 22/08/2019 08:41

eeksville I don't understand why you are asking me that!

Oh! I forgot the smiley - I was being ironic Smile

[and fucking angry too]

YorkieTheRabbit · 22/08/2019 09:55

I’m 52 and have worked for 35 years. My state pension age has risen from 60 to 67. If I carry on working until I’m eligible for my pension, that will be 50 years. Isn’t that enough? Shock

Gobbolinocat · 22/08/2019 11:16

Just to be clear is this all pensions or just state pension? Ie will work pension pay out sooner?

Neither parent lived to 75. I don't expect too either.

Would sipp rules change?

Ali86 · 22/08/2019 11:49

Gobbolino - obviously this is just a think tank idea and doesn't look very carefully thought out but if the Govt did adopt it then the proposal itself is just about raising the state retirement age. BUT many private pensions are tied into the state pension age in two ways:

  1. A lot of people are in defined benefit schemes e.g. the NHS scheme which tie the normal retirement age to the state age so if you are relying on one of these schemes you might suddenly find that you can't get either state or private pension till a much older age (NB you have to look at the terms of the scheme to see what happens to the pension you have already built up).
  1. There is also a minimum pension age which is the youngest that you can access any personal pension (with some exceptions). This is generally 10 years below the state age. So it was 50, is now 55 and is going up to 57 when the state pension goes to 67. If the govt kept that policy and raised the state age to 75 then presumably you'd not be able to access any pension funds to 65. HOWEVER as this is all just a think tank idea with no detail no-one knows whether that would actually happen.

Disclaimer - I am not a pensions expert and this is just from reading around trying to plan my own future.

Ali86 · 22/08/2019 11:53

Sorry you specifically mentioned SIPPs - they come under my point 2 below.

If the govt do reform the state pension further I hope they give really careful consideration to the impact it will have on employer/personal pensions, though I am not confident that they will. If you change the rules and pull the rug from people who've planned carefully then it is deeply unfair on those people and teaches younger generations that there is no point in bothering.

jennymanara · 22/08/2019 19:37

@Engtech Statistics show as you get older it gets harder to get a new job. And it is much harder for women than men. Men are more likely to be valued for their experience, women for their youth.

HelenaDove · 24/08/2019 17:22

www.eveningtimes.co.uk/news/17855375.think-tank-behind-pension-age-rise-worth-closer-look/?ref=twtrec

ews

23rd August
The think tank behind pension age rise is worth a closer look.

The think tank report to raise the state pension age to 75 should set alarm bells ringing.

Already people in Glasgow , particularly men, receive less pension over their retired lives.

If you live in Poole in Dorset, where live expectancy is 84 for men, then you can look forward to 17 years of retirement with a state pension.

If, however, you live in Glasgow where it is 73 then you can expect just six years and a meagre five by the time the state pension age rises to 68

Glasgow men won't live to see pension

Consider then the plan by the Centre for Social Justice to raise the state pension age to 70 and then further, to 75.

The plan wants people in places like Glasgow to die before they retire.

If you want to retire before the state pension age, you will need to pay into private scheme.

And this is where the think tank is worth a closer look at who is behind it.

The CSJ has a list of “partners” on its website, including private pension giant, Legal and General, Deutsche Bank and hedge fund manager, Rab Capital.

It also lists the Living Wage Foundation and several charities and charitable trusts among its partners.

The CSJ board of directors lists welfare reform architect Iain Duncan Smith as chairman, Stuart Roden, former chair of Lansdowne Partners an investment management firm, John Kinder, founder of Rivertrade Limited, a private investment firm and Cara Usher-Smith, who used to work for Iain Duncan Smith when he was Tory leader and then Michael Howard. She also worked for the Stockholm Network a “market oriented” think tank.

READ MORE:

Millions lost in pension credit

Some Conservatives were angry at reporting of this report as a Tory plan and Amber Rudd the Work and Pensions Secretary has said it is not government policy.

It may not be Tory policy at the moment but people who have paid attention during the last ten years would not bet against it finding its way into a manifesto.

At one time it wasn’t Government policy to increase the pension age to 68, it wasn’t government policy to deny women born in the 1950s the chance to retire when they thought they would and it didn’t used to be government policy to impose universal credit on people.

Lots of government policies begin life as think tank reports

And this particular think tank was founded by Iain Duncan Smith and is reported to be favoured by Boris Johnson.

It also had a hand in the development of Universal Credit - before it was government policy.

We can’t afford pensions at 65 with an ageing population, goes the argument of people like Iain Duncan Smith.

We can afford it if we want to afford it. And the money spent on pensions comes back into the economy.

The money used to fund pensions is the money generated by millions of workers in National Insurance payments, income tax and in other taxes like VAT where those on lower earnings pay a disproportionate amount compared to their income.

Like the private pension industry and the insurance industry the treasury is not planning to fund pensions for all, instead it needs many people to die before or just after they begin to collect.

Iain Duncan Smith has shown himself to be a man who should be nowhere near the welfare state as he only seeks to do it harm and harm to those who need it.

He will never need a state pension. Nor will he probably officially retire but neither will he need to work when he is older, he could retire now if he wanted to.

But where is the fun in that when there are people to deprive of basic essentials and safety nets to be dismantled.

Politicians like Duncan Smith say we can’t afford the pension but also want to limit the number of people coming into the country who would grow the workforce and the tax take.

For them it appears to be all about who is deserving and who is not deserving.

Well, the millions of people who have worked for forty years on a basic income, many of them raising families in that time and paying for the services they use but not earning enough to have amassed a pension pot that can be lived on are deserving.

People who have worked hard and spent their earnings back into the economy out of necessity while others hoard wealth are deserving.

They deserve to be able to enjoy at least ten years and if they live even longer and receive a pension, so be it.

The Centre for Social Justice’s report is dangerous and should be resisted. "

HelenaDove · 26/08/2019 01:41

www.24housing.co.uk/news/strong-message-for-housing-providers-in-latest-population-statistics/

Strong message for housing providers in latest population statistics

Stats show extent to which population is ageing – illustrating the need for housing to keep up.
Share
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Bill Tanner
11:27 August 23, 2019
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New UK population stats send a strong message to housing providers: Get a grip on the hold of the old.

The Office National Statistics (ONS) says that by 2050 one in four people in the UK will be 65 and older – up from around one in five last year.

Overall, 65-plus is the fastest growing group.

“The structure of the UK’s population is changing: People living longer and having fewer children means the age structure is shifting towards later ages,” says Sarah Coates, Centre for Ageing and Demography, ONS.

In June, 24housing reported a cross-party alliance pushing for later living as a housing priority.

A high-profile group of MPs, Lords, charity leaders, and business leaders publicly declared their support for a major expansion of the UK’s Retirement Community sector as a specialist housing priority over the coming decade – seeing the sector quadrupling in size by 2030 to 250,000 people.

The sector already accounts for 75% of all projected growth in the UK’s supply of specialist housing for older people from 2024 onwards.

The ONS references projections that pitch the population share of later-life age groups increasing further in future years.

By 2041, the 1960s’ baby boomers will have progressed into their 70s and 80s, and by 2068 there could be an additional 8.2m people aged 65 years and over in the UK – a population roughly the size of present-day London.

This, ONS says, would take the UK’s 65-plus age group to 20.4m people – accounting for 26.4% of the projected population.

In 1998, around one in six people were 65 and over (15.9%); this increased to one in every five people in 2018 (18.3%) and is projected to reach around one in every four people (24.2%) by 2038.

Comparatively, an estimated 20.5% of the population were under 16 years old in 1998, decreasing to 19.0% in 2018 and a projected decline to 17.4% by 2038.

Again, in 1998, 63.6% of the population were aged between 16 and 64, down to 62.7% in 2018 and a projected decline to 58.4% in 2038.

Within the UK, the older population comprises higher proportions of the populations of rural and coastal areas rather than urban areas.

One traditional measure used to consider the impact of an ageing population is the Old-Age Dependency Ratio (OADR) – which measures the number of people of pensionable age and over per 1,000 people aged 16 years to State Pension Age (SPA).

In 1998, the OADR was 300; by 2008 this had increased to 307, suggesting increased dependency.

In 2018, the OADR decreased to 295.

However, the UK’S OADR is projected to increase into the future, reaching 360 by 2038.

While there are increases to the number of people above State Pension age, the ONS acknowledges seeing the number of people aged 65 and over and in work being higher than ever.

Using an alternative measure that takes into account the contribution of older workers, analysis found that economic dependency has shown an improvement, despite the population becoming older.

Another strong message for providers comes with cohabiting families being the fastest-growing family type and more young adults living with their parents.

The stats show that, since 2008, there have been an additional 700,000 cohabiting couple families – a growth rate of 25.8%.

Meanwhile, more young adults are living with their parents.

In 2018, the first age at which more than 50% of young people left the parental home was 23.

Two decades earlier, more than 50% of 21-year-olds had already left home.

Young men aged 20 to 34 living in the UK are more likely than young women to be living with their parents – 31% and 20% respectively.

In addition, the ONS acknowledges increases in the numbers of people living alone.

Between 2008 and 2018, there has been a 6% increase from 7.5 million to 8 million.

This increase was driven primarily by the increase in the number of older men living alone: a 55% increase for men aged 65 to 74 years and a 20% increase for men aged 75 years and over.

In 2018, nearly half of those living alone (48%) were aged 65 years and over and more than one in four (27%) were aged 75 years and over.

UK Population Overview 2019 – Main Points

In mid-2018, the population of the UK reached an estimated 66.4m
The UK population’s growth rate in mid-2017 and mid-2018, at 0.6%, was slower than any year since mid-2004
Long-term international migration to and from the UK has remained broadly stable since the end of 2016 and has also continued to be the main driver of the UK’s population growth
In 50 years’ time, there is projected to be an additional 8.2 million people aged 65 years and over in the UK
After decades of improvement to life expectancy, the latest figures show a slowdown in improvement – life expectancy at birth remained at 79.2 years for males and 82.9 years for females in 2015 to 2017

CurlyMango · 26/08/2019 09:42

Randomness....my children’s great grandmother is 94. She is not and has to and is not able to look after children, she can barely stand. Age plays a massive part in most things, appreciate some great grandparents might be 70 or so, like my parents but they would also be shattered. And perhaps not retired if the age changes to 75.

Thebearsbunny · 27/08/2019 11:42

There’s another thread running at the moment about looking after elderly parents. Quite a few posters appear to be caring for relatives who are in their 60’s, so whilst many may be living longer many are obviously experiencing ill health around the current retirement age. I’m in my 50’s now and the thought of having to work till I’m 75 terrifies me.

jennymanara · 27/08/2019 21:21

I remember someone on here saying everyone they knew who was older worked. On closer questioning it turned out to be well off people doing hobby jobs such as a local parish councillor, or a magistrate or a director on a company board. These kind of "jobs" are important, but can be done very part-time. Nothing like actually working full time for a living.

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