Retirement age in Denmark set to raise to 70

[MikeRafone]

https://www.bbc.com/news/articles/cvg71v533q6o

I hadn’t realised Denmark was presently in line with uk on retirement age and now raising it to 70

and that’s for people born 1970 onwards! I wonder if this will be used for uk to fallow suit?

Well well, the same response as Digdongdoo. What a coincidence!

Sorry, I can't remember who talked about our tax system taxing income. But that's why we need to start looking at a wealth tax. I'm not sure there's much of a choice. The cost of living is hammering every working income earner, you can't get blood from a stone.

What about retired income earners?

... or I should say "retired income receivers" to pre-empt quibbles about what "earn" means.

It’s not that long ago that we had different rates of income tax on different types of income! Perhaps we need to turn back the clock a bit!

If their retirement income is over the Personal Allowance, they pay income tax. Just like everyone else.

It’s not that long ago that we had different rates of income tax on different types of income! Perhaps we need to turn back the clock a bit!

If pensions were taxed higher, people would be put off putting money into one.

My husband’s mum retired at about 55. She’s now 88 and they complain about the NHS and the loss on winter fuel payments ( they were having 3 cruises a year). Somewhere along the way the generation born in the 40s felt that life owed them and created a monster that we as a society can no longer service. Two of her daughters then also expected to retire mid 50s. It’s only the escalating house prices that enabled that but it’s not sustainable.

How far off from retiring are you @BigFatBully ?

They’d be cutting off their nose to spite their face if they wanted a decent retirement.

Nail on the head. Far too many of them have that attitude of entitlement, expecting to take out many more times what they’ve put in.

It would affect the lower paid who have to choose between putting in a pension and paying the bills, who probably wouldn't get a decent pension anyway, they wouldn't put money away and get 20% tax relief if they were charged higher tax when getting the pension.

The tax relief on contributions is still more valuable than not bothering at all, even if taxes on drawing are higher. But usual financial advice with those on low incomes who may not build up a worthwhile pension is to invest in ISAs anyway for more flexibility and tax free income/gains.

The problem is, no one is really interested in their pension until they are 50+.
So it doesn't matter what incentives you introduce, take-up will probably not really increase.
I had a part-time colleague who, when the pensions auto-enrollment came into force, went to the bother of opting out of paying around £1.50 a week into hers.
Clearly it would not have given her a massive pension, but it seemed such a silly thing to do. She was mid 40s and just had no interest in her pension.
Yet she's probably the kind of person who will end up on pension credit and get everything that her more sensible colleagues will have to pay for for free.

Me at my desk (thats if im still doing a desk job by the time im 70 and AI hasnt taken every job!) 🤦🏻‍♀️