What will eventually happen with the State Pension?

[BrainInAJar]

Hello,

I recently turned 40 and have been reviewing my finances.

A lot of stuff online factors in getting the State Pension. I'm trying to be on the safe side though and factor in that I might not get it, not the full thing anyway and maybe not until a much older age than earlier generations.

Just out of interest, what do you think will happen? Will any Government be "brave" enough to make sweeping changes? How much notice will we get? Who will be the first generation, if any, not to get a state pension?

Thanks

I’m a frontline nhs worker too - no chance I will be able to do the physical aspects of my job beyond age 60, never mind 67! But at that age surely employers will choose younger applicants with up to date skills for admin roles - why would they want me?

Don't be so sure. I work in the NHS in an admin role and I'm 62. My nearest co -worker is 72. Flexibility in semi retirement is an asset.

Yes but you have experience in admin.

Yup. The triple lock is foolish and unsustainable - suspect that will be the first major change.

defined benefit schemes are expensive and risky for those that provide them. Expect individuals to bear increasing responsibility for their own retirement. The stage has been set with mandatory contributions to private pensions, and by the time I retire (mid 40s now) I would expect state pension to be viewed as a bit of a top up to private pensions rather than the primary income tax in retirement. I expect state pension will be just barely enough to keep someone alive.

Yes, their continued spending because they were largely insulted from the cost of living issues was a large contributor to keeping inflation so high for so long. Their pensions got uprated and they had even more spare cash while working families got hammered with below-inflation salary rises and rising interest rates hugely increasing their mortgage payments. Then the pensioners were joyous that they were getting higher returns on their savings. Nice.

Inflation wasn’t high for very long at all. And it certainly wasn’t caused or perpetuated by an £18 a week increase in the state pension. It was caused by increased energy and food prices.

Maybe one day when you are having to live on a state pension (how I hate that word, it's so old fashioned!!) you too will be joyous that you are getting higher returns on your savings. Do you seriously think they are living the high life, and that they are the only people who continue to spend?

As always it's swings and roundabouts, either borrowers or savers are going to be happy and the others not - it's been going on forever.

Those 'joyous' pensioners have lived through years and years of high interest rates that make the recent rises look like peanuts in comparison. The price of a house was less, but actually paying for it month on month, plus all the other living costs, bills, clothing, furniture, food, travel .... it was grim. And don't even get me started on costs of childcare: no free hours. No tax credits either: you wouldn't get topped up for working part time or in a low paid job. Blaming today's pensioners for enjoying a cheap lunch out is bitter and pathetic. Most pensioners are not rolling in it. Neither are they from some golden age where they lived the life of Riley on one wage and everything was rosy. Do the maths. Todays pensioners lived through tough times too ( 3 day week, anyone? ) and to blame their inflation on their little treats or lunches or a seaside trip is laughable

It's already barely enough to keep someone alive. You think you can live on £10,000 a year? Knock yourselves out.
Pensioners living a great life on holiday and in the pub aren't doing it in a state pension, they're doing it on workplace or private pensions.
Savings rates have been around zero for the last 15 years or so and nobody is insulated from cost of living rises. We all need food and heating.

You did get topped up. It was called supplementary benefit. Dm worked in the civil service dealing with it in the 70’s and early 80’s

@beguilingeyes exactly, these people who think the state pension is paying for a lavish lifestyle are deluded

I see this on the Mumsnetters without children - we must be rolling in it because we don't have children to pay for - ignoring the point that we aren't all high earners with wads of cash in our bank accounts and that we have bills to pay just like everyone else. I wonder if the people who talk about pensioners having 'even more cash' actually look at how much the SP is.

Validus · 02/02/2024 13:14
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For anyone with kids - start them (assuming you can) a pension now. They will benefit from the compounding and they’re going to need it”

Absolutely this! Far too many people don’t understand the huge implications of compounding.

I think the point is not all parents are high earners or rolling in it either.

If you and a parent are earning the same money, you both need to pay for housing, straight away the parent needs an extra possibly 2 extra bedrooms for the kids (boy / girl not appropriate to share)

You need heating and food, bigger house more heating, more mouths more food.

Children, aren't free, and once they are teens clothes and food is expensive

@Outthedoor24 a single person on minimum wage is often poorer than a mother in minimum wage. There will be no benefits for the single person and usually no family help.
When I was single and without children I had a low paid job supporting single parents. I was poorer than any of them.

DH has always said he doesn’t think there will be a state pension when we get to pensionable age, we are early 50’s, we are making our own provision.

Then your DH is being over pessimistic.

Children are not compulsory. Old age is.

No-one is forced to have children. If you can't afford them then you have a choice. People who do have children and are on a low wage usually get financial help - funny how that is conveniently forgotten!

Has it never occurred to you that accidents happen and even with planned children circumstances may change in the 18 years between getting pregnant and raising a child.

I know far more parents who've ended up as lone parents because of bereavement than I do from divorce or separation.
Parents may also become ill or become redundant from good paying jobs ending up in minimum wage roles.

Of course it has occurred to me that accidents happen, but the majority of children are, to some extent, planned.

I also realise that circumstances change, but surely if you have children there are steps which can be taken to plan for such circumstances. Separations are a bit different, but if people have children and no life insurance then they are downright foolish. As I mentioned, those in altered circumstances do get help. I have a friend with two young children, she is divorced. She has her own house (purchased after the marriage ended), a part time job, and got little from the marriage break-up. I'm older, single, no children - and although I am now retired I have rented for many years, even when I had a full time job. We both did admin work btw. I am also separated, have been for many years, and due to the timing had no chance of buying a property.

https://www.theguardian.com/money/2024/feb/05/uk-state-pension-age-will-soon-need-to-rise-to-71-say-experts

Yes I read this this morning; exactly the issue. Later pension, snd a real need to set aside your own resources and maintain health.

Just came to share this!

Really don't think I can do my Physical NHS jobs till 71!

I very much doubt anyone doing a physical job will be able to work at 71.

A fair chunk of people already end up on disability benefits long before retirement age.

UK Governments have been trying to get people.to set up their own provision for decades.

It is going to come down to if you want a chilled out retirement in good health you need to pay for it yourself.