Government to conduct review into state pension age

[lookingforwardtoautumn2]

https://news.sky.com/story/government-to-conduct-early-review-into-state-pension-age-13399571

Some news sites are saying the rise to 68 may be brought forward.

It doesn’t really make sense when they’re also saying pensioners will be poorer in the future compared to those today. Why is the answer to raise the age further?..

The SPA is 68 for me at the moment but I wouldn’t be surprised if it rises into the 70s, especially if they keep the triple lock.

I think this is a very key point. Yes people are living longer but that doesn’t necessarily equate to being able to comfortably work longer.

For many people, health issues do start to arise in early 60s and so would argue really if you’ve had a lifetime of work already you want to be able to take your retirement then when you can actually hopefully have at least a few healthy years to enjoy your retirement. Eg I’ve been suffering from shoulder impingement and hip tears, gastro issues since the age of 50 and my SPA is 67. I’ve worked FT my entire life and been dealing with life all alone also which is psychologically very taxing and I feel ready to drop age 52! I’m currently looking to get one final promotion to enable me to retire at 62 on a modest income. That does scare me though as I feel so much more tired already and the thought of doing a more senior role with more accountability, learning and work hours isn’t really what I want but with no safety net in way of a partner/family I feel I have no choice. It would almost make me feel like I’d failed in life if by the time I was able to draw my pension, my health was too poor to actually enjoy it. It’s like what was the point of anything at all then? Would have been better to just have worked PT and been topped up with UC and then enjoyed your health when younger even if it just meant regular walks in a park/cheap day trips. I’d rather that than almost 70 comfortable income in bank but just sitting immobile confined to the indoors indefinitely.

So in reality the ( potential ) add on in years is about the same.

Not when you take healthy life expectancy into account which is the issue. We will just see further reduced birth rates and those that can will go abroad. Other European countries will incentivise them to do so, some have already started.

@LittlleMy I agree and many public sector pensions are linked to state pension age, that won't go down well.

It’s almost on a par with working age benefits though now, with the rapid increase there. Which is the bigger problem in my mind

@january1244 is it? I've never read that

I am 64 so will by current rules get the pension aged 67. Am very fit and healthy, so lots of sports, no health ‘issues’ because I have taken care of myself. But I people on their 40s and 50s taking no exercise and just thinking themselves old. We really need to educate people to take care of themselves. There has never been more information and resources to keep active, but people choose to be lazy.

I’m sorry you feel that way. I understand lifestyle vs health/disability is a difficult subject to discuss, and didn’t mean to upset or insult anyone.

However, it is fact that we are getting unhealthier as a nation and that is very relevant when it comes to expecting people to work longer.

But I people on their 40s and 50s taking no exercise and just thinking themselves old. We really need to educate people to take care of themselves. There has never been more information and resources to keep active, but people choose to be lazy.

Healthcare costs increase post 65 & particularly post 85 because no matter how heathy people are it's often beyond your control.

I agree that increased pension ages, reduced living standards etc will mean more health issues for the middle aged though.

I do agree with this. In our late thirties, and quite a few family and friends have already chosen to move to other countries for the lower tax and lower costs of living, and better standards. I can completely understand why they have gone, although it’s been sad for us. My partner is from another (western) country, and wants us to move there, for similar reasons.

The majority of those that left both had high / six figure salaries, so it’s losing net contributors. But I think they felt the social contract had been broken, and they were highly taxed, nothing back except the expectation of higher taxes, and paying very high childcare costs while living in small flats

Yeah if you look at the latest government pie chart, the working age benefits bill for 7.5 m claimants has ballooned to be virtually the same as for pension age benefits (including the state pension) for 12.95 m pensioners. It’s about 1% different

But I think they felt the social contract had been broken, and they were highly taxed, nothing back except the expectation of higher taxes, and paying very high childcare costs while living in small flats

That's a huge part of the problem. But many don't want to even recognise it.

@january1244 can you link pls, I googled and couldn't see that

When the state pension came in the first too receive it were those that largely left school aged 12. So many had to work from age 12 to 65 to receive it = 53 years of work.

Nowadays most people don't leave school (uni if you will) until aged 21 and currently will get the state pension at 68 = 47 years.

So in reality maybe the state pension age should be 74 if it is to equate to what those that first drew it had to work.

Here’s a screenshot of a pie chart but it’s outdated from 22-23, and has a slightly bigger difference between the two. I read the latest report on the 24-25 figures a couple weeks ago, but they didn’t have it in a pie chart format- the working age benefits has increased so it’s much more equivalent.

I was surprised as the number of pensioners is higher, but the working age benefits is where we are losing control. Part of that is the ludicrously low monetary amount and number of hours equivalent needing to be worked for working age benefits to be claimed. Eg the amount for a healthy couple is equivalent to just three quarters of one full time job in minimum age between them

One of perks of working for CS has always been a decent pension but the trade off has always been not so great pay each month. Same for teachers and those working for NHS too.

55% of it on all pensions (including those of police, civil servants, armed forces, teachers nhs etc). 45% on benefits.

An astonishing amount of money spent on non pension welfare. Unsustainable.

We really need to educate our politicians on basic economics. Let’s start there.

55% of it on all pensions (including those of police, civil servants, armed forces, teachers nhs etc). 45% on benefits.

That's not what I queried though? It was about the spend on working age benefits. Logically some of that 45% above will be spent on pensioners if 55% just accounts for pensions.

@january1244 but that chart has grouped working age & children together?

You can buy a house on a normal wage. Just not in London or other hotspots.

An astonishing amount of money spent on non pension welfare. Unsustainable.

@tramtracks you have confused me now. If 55% is just spent on pensions why would all of that 45% be non pension welfare. Where are the costs of pension welfare that aren't pensions sitting? Pensioners get disability & housing benefits too.

It includes the child element of universal credit - the total number of benefits paid out to the working age benefits

I think the whole system needs an overhaul but everyone is dancing around it and not being straight about what a mess the country is in. I'm late 60's and can see issues in housing- more private renters receiving housing benefits which will continue as they stop working. Health services are stretched to the hilt by innovation in treatments which used not to exist plus an unhealthy aging population. So many people my age and younger who do little or no exercise, eat unhealthily and have multiple health conditions and increasingly require knee and hip replacements, have vascular problems, diabetes etc. Mental health problems are rife. There is little incentive to take responsibility especially in lowish income work. Those on benefits can be better off in the long run especially with pension credit as it's a gateway benefit and are better off than those with modest private pensions. I think pensions will be means tested, taxes will rise. Things really have to change but no one will face up to it.

I bet a lot of that is paying for expensive private rentals through Universal credit. People have to be housed and all the social housing has been sold off.

So they’ve just split it into total amounts paid to the age groups, so the sum for pension age is inclusive of pensions and all benefits to that age range I believe. And the sum for working age benefits include all benefits going to that group, including the child elements