Retirement for those born after 1970 is likely to rise to 71 in the future

[Tiddlywinkly]

This Guardian article was a tad depressing to read:https://amp.theguardian.com/money/2024/feb/05/uk-state-pension-age-will-soon-need-to-rise-to-71-say-experts

I fully acknowledge that we are living longer, are having less children etc, but for many, our health might not be up to working for that long. There'll also be a knock on effect as to how much we'll be available for helping with grandkids/ very elderly parents.

I just wondered what other people thought?

I agree with this.
There has to be a balance when it is coming out of public funds. There have to be enough taxes coming in, to provide the benefits that are going out.
People who want to finish work earlier, have to factor that in to financial planning. That includes choices about time out when dc are young, and smaller choices throughout your life about what you spend your money on - consumables, gadgets, holidays, going out, takeaways, meals out coffees out, cars, clothes, etc etc etc or pension, paying down mortgage (if you have one), other savings and investments.
No-one is saying people can't retire at 60 or 65 or 67, the suggestion is that it won't be sustainable for the people who are working to fund state pensions for people who choose to do so. Which is fair enough really.

ironically this may be the push to have children. When the social contract is broken, family has to step in. Relying on the family was what enabled me and Dh to buy a flat in london in our 20s as we stayed with his mum for a few years. Perhaps in our old age we may combine forces with our future child to be able to afford a decent life for us all - perhaps we could buy a large home together with the understanding that the child will pay the bills while we provide the capital (wouldn't be easy for him or her to buy a home in London without bank of mum and dad). This is what my dad did with my grandparents back in mhy home country and perhaps history would repeat itself.

This shouldn't be the driving force behind having children but in my view sacrificing something you genuinely want (because it makes financial sense) may not be that smart in the asset economy. You can economize all you want but in the end, how much can you save on a marginal tax rate of 40% or even 60%(that is DH's current marginal tax rate)? It cannot compete with an outright cash gift of £400-500k or even a million. In 2019, people giving up netflix or avocado toast or easyjet holidays couldn't even compete with the 60k we saved in 3 years on account of not paying rent, let alone someone with the ability to pool resources with family members with property assets. two thirds of first time buyers today are couples for that reason (most of them with financial help from family

No matter how much a millennial socks away in a pension, it probably wouldn't be enough compared to the inflation adjusted earnings of a professional in 2050. Yes having a child is hard now, but so is everything else. if family and relationships become the alternative currency (due to state failure and wage stagnation), perhaps its best to invest in it. In the past, we were rich enough to say- we must live life on our terms and we should only be responsible for our own expenses. Perhaps now we need to face up to the fact that as a society we are no longer in that privileged position. Most societies all over the world are communal.

A lot of this is the knock on effect of raising the state pension age. Age is the biggest risk factor for becoming disabled. The older they push the state pension age, the higher the number of people on disability benefits because they are now considered working age.

Much of the rest is the collapse of the NHS. Health conditions are not being treated timely or properly, leading many more people to become disabled.

And of course, a not insignificant % is the drop in the value of the £ and inflation pushing up the price tag for each person on disability benefits.

I'm 51. My workplace pension(s) will be tiny and the state pension won't be enough so I will have to do what my DM did and work p/t till I'm 80. My DF died aged 55 so he never reached pension age.

The problem of employers not wanting to hire older people may not be so much of an issue - they may not have much choice.

People's fitness will be. However, there are a good number people who manage to have rather long retirements who are fit, so it may contribute some, and we may see changes in how we manage employee tasks to account for fitness.

All this being said, part of the issue is that while we have increased the lifespan, it hasn't all been an increase of healthy productive years. We've added on a good number of years at the end which are often rather miserable and require extra care.

I wonder if we may see a return to certain older ways of doing things - older people moving to very small flats or flat sharing, or moving in with kids, for example, while taking on less demanding or part time jobs. The idea that working forty years entitles us to another 25 or 30 in our home having fun and then being cared for may just not be sustainable, unless you want to be putting away a third or more of your income during those working years.

@breadandroses92 The Tories moaned like fuck for years saying that people shouldnt have kids that they cant afford. Now the reckoning might have to be paid here comes the whining

Over 70's driving HGV's...what could possibly go wrong. 🙄

ETA I remember several years ago when there was a big push to get over 55's to give up work to make way for the younger generation as youth unemployment was so high. What's going to happen when all the school leaves find that there aren't any jobs due to the "old folk" having to stay on?

I’m working on the assumption that there won’t be a state pension when I retire. I can only be pleasantly surprised that way. I started a work pension when I was 23.

Sod that, my df died at 64, dm is 72 and in no way would she want to or be fit enough to at this point, she’s starting to struggle with housework.

My normal retirement age is set at 67 I think, I’m 44 now, I’ll be amazed if I get there let alone 71. People are living longer, but they’re not healthy for longer.

I wonder if we may see a return to certain older ways of doing things - older people moving to very small flats

DH and i live in a very small flat Nowhere to dry clothes as ive discussed in another thread
JenniferBooth · 31/01/2024 00:05

On the continent they arent expected to dry clothes with osmosis or the power of prayer. so if more flats are to be built in the uk FFS BUILD THEM WITH LAUNDRY ROOMS in the building. I currently have clothes as well as bedsheets drying all over the flat because there is no other way of drying them No room for a tumble dryer in my too small kitchen in a one bedroom flat.
And there IS an assumption in the social housing model that if you dont have kids you dont need to wash wear and dry clothes.
Housing associations will often come out with comments like "its your lifestyle"

NO!!! the UK does not have homes especially flats unsuited to lifestyle. The flats here are unsuited to LIFE Thats why people in the UK dont like them!!!!!

And there is also the storage of disability aids to consider DH has a mobility scooter which has to be stored in a shed outside. And more mobility aids indoors. How is this all going to be accomodated millions of times over. You cant stick pensioners in tower blocks

If Brits could get themselves organised to protest like the French,we would have the same health service that France has and pension age would only start going up now,instead of endlessly up and up.Of course,the French know that the time to protest is when reforms are talked about,not 10 years later when they are implemented.

I don’t mean just by a private pension , you could retire whenever with savings if that’s what you want to do .

I have a washer dryer and most things come out dry. I live in a small 2 bed 1930s flat.

If they don't, then i do another 'dry' cycle. DH's suits/trousers go to the dry cleaners. I mainly wear very casual cotton dresses.

So what if someone has been a carer or has never worked out of the home? been disabled and got pension credits?
Are they just going to starve.

There isnt any room for a tumble dryer The kitchen is too small. You were the one who brought up small flats not me. Those of us who a. cant afford to buy a place and b. have chosen not to reproduce are already in a small social housing one bed flat.

Direct cremation unit in every office car park, beside the recycling bins.

Agree with pp that this is just to soften us up for people born a bit later having to work for a bit longer before getting a state pension. Can't believe it will be an extra four years in reality - that's a huge leap.

Well I work for Adult Social Services so it's going to be a bit weird organising care packages for my peers!

https://www.estateagenttoday.co.uk/breaking-news/2023/5/size-matters--uk-homes-amongst-worlds-smallest-but-most-expensive#:~:text=The%20research%20shows%20that%2C%20at,India%20(504)%20were%20smaller.

the research shows that, at an average of just 818 square feet, the UK is home to one of the smallest average property sizes in the world. Of the other 19 nation’s analysed by Moverly just China (646 square feet), Russia (614) and India (504) were smaller.

We have some of the smallest housing in the world to be doing all this intergenerational living. Plus many traditional third places like pubs and libraries have closed or reduced hours.

It is noticeable with older relatives it is family filing increasing gaps in care but with more people working full time that's a strain on families which are also getting smaller and more dispersed - which can impact their long term health.

I agree with this

People aiming to work from approx 24 (gap year, University) to mid 50's, then live until their 80's = it's just not sustainable

When pensions were introduced, many people only received a pension for a few years before they died

It was a disgrace. I've been on strike for pension provision in the public sector. In France of course they build barricades and set fire to them when similar threats are made! And it's worked

Wages are not keeping up with inflation and costs of living, people aren't being wasteful... Simply people can't save up any money after paying for rent, bills and groceries. What the government plans is to abolish age of retirement and we'll be forced to work until we die

A relative of mine works for a chap who is 69 this year and still driving an HGV internationally as part of his work. Perfectly safe, has to renew his license annually now so any issues are quickly picked up.

I agree we can’t expect 30 year retirements but the majority of those able to retire at 60 or below would have started work much younger than 24. Many many at 16.

I did a gap year, degree and PGCE and was still starting my career at 23.

I imagine those people will continue to get benefits as they had previously, but that there won’t be anything for people who aren’t reliant on benefits. I’m not saying I support this situation by the way, this is just what I think is likely to happen.