State pension

[Brexitstolemyfuture]

People are being lied to about their chances of ever getting it imo. So they are going to raise it another year. I'm still 25+ years off it. Aibu to think I'll never get it?

The BBC article says the changes will be phased in over two years. Does anyone know how this is likely to work? I was expecting to retire in 2037 at 67 so will I work a full extra year or part of one? I know it will probably change again but as a teacher my birthday works in nicely with finishing an academic year. If I can retire at 37.something I could be leaving part way through a year. Not sure how i feel about that.

The best thing you can do is get yourself informed. These changes are frustrating but they have been well publicised. I am 48 DH is 51 and I feel that anybody around our age or younger has the time to try and make/change plans.

I realise that some people have no spare money and have little choice but to wait and hope that it all works out. However I know people our age who are sleepwalking blindly into this. Spending all their money trying to maintain a certain lifestyle, no savings, credit cards up to the max. They live for today and don't worry about the future. I couldn't sleep at night but maybe they are right and it will all work out

like everything, really it is about balance. I kind of envy people who talk about old age like a certainty- several of my closest and dearest friends died in quick succession when I was in my late teens /early twenties. I've taken from that, after a few years of living recklessly, that life is about balancing living for now with living for the future.

Squirrel a bit a way, even a few pounds, if you can. But never squirrel away large amounts at the expense of enjoying the here and now.
I have a couple of friends who live miserably frugal lives in pursuit of a luxurious old age and it just seems incredibly arrogant to assume that is a given.

I earn a fairly average salary, so my compromise is not spending touch on material goods - I don't have a fancy car or loads of fancy schmancy technology or expensive clothes. But I do have an 18% of salary pension contribution and make mortgage overpayments. And we also enjoy life - theatre trips, hobbies, parties etc. I also work around school hours so get a happy balance between work and kids. Rather all of that than the latest Audi or whatever.

balance, it's all about balance.

I can't imagine wanting to retire early and loaf about playing golf though. I love my job. My grandparents kept working (on a consultancy basis) into their 80s and I hope to do similar if health allows. I'm glad my mum drilled into me to aim for a career I found interesting and fulfilling (and I feel very lucky that despite lots of tragedies and set backs in my twenties) I have found one

I've tried a number of different careers and realised that I just haven't liked any of them. Right from the first day of working I was struck forcefully with the knowledge that the time I spent at work would be far more enjoyably spent doing the things I fancied.

It's good that people enjoy their work but many people don't.

Belindabelle No you really do not have the time to respond to these changes.

I have saved into a pension since I was 20. I would honestly tell anyone now, that unless you are going to have a substantial pension, don't bother. Just enjoy yourself.

Working on a consultancy basis into your 80's is totally different to having a demanding boss insisting that you do a certain amount of work in a given time. Honestly it sounds like a lifestyle job at that age, rather than what most people see as work.

Also more and more people will be going into care homes. It is women my age and older who have looked after elderly relatives to delay this. People working full time longer will mean this is no longer possible.

Sorry brasty but I think that is terrible advice. I'm not going to pretend that saving into a private pension/LISA will ensure a rosy, prosperous future for everyone, but NOT saving anything will be an awful lot worse for most people. If we cannot rely on the government to adequately provide for us in old age, that's all the more reason to do what we can to to make sure we have something else. If you can save, do so even if you can't afford to save much. A little is better than nothing.

AppalachianWalzing made some very good points on the previous page.
Fatalism can be as bad as blind optimism.

I agree with you though that working on a consultancy basis in a job that you enjoy is not an option open to most people. Its wonderful if someone does find themselves in that position, but it is not going to be the case for most of us.

I am late 30's and have a working assumption that state pension will become means tested. It was one of the primary reasons I decided not to become a SAHM but am fortunate to only work part time.

The idea of means testing of the state pension had also occurred to me and I have mixed feelings about it. On the one hand there's the overriding fact that whatever system develops needs to be paid for. On the other hand the idea that savings I build up by going without would simply lead to the erosion of a pension that would be available to others who spent instead of saved* is vexing.

On balance though I'm more in favour of UK-type social security than Devil take the hindmost.

• I'm aware many don't have the luxury of being able to save

The Government will always offer some type of pension to the poorest people. Since most private pensions of low paid people will be less than this amount, there really is no point saving unless you can get a decent pension.
My private pension will give me £100 a week to live on. I will have no inheritance. If pensions become means tested it would have been better for me not to save at all. No point.

Also there is a pension crisis coming in my age group. I know quite a number of people who have taken the money out of their pension scheme, and will have no private pension. Some of those people are foolishly relying on inheritances to fund their retirement.

I know of one person with a decent final salary pension who is going to retire early (50), cash it all in, have enough spending money to do the outdoor type stuff he wants while he's still relatively fit, and then rock up to 67 without a penny and with his hand out. He had no dependents. Also no inheritance (that would make a difference).

There is logic in it but it definitely wouldn't be for me.

Making the state pension completely means tested would not just piss off swathes of voters, it would put off the kind of voters that politicians care about the most (sounds harsh, but ts true). Don't forget that the process of means testing comes with it's own costs. particularly when trying to untangle a complex definition of wealth (property vs private pension income)
It is more plausible that they may gradually reduce the basic, universal pension to a pittance and increase means tested top-ups, as this would attract less outrage. But even then, most people would still be better off having saved something: Small savings = fall below the means threshold anyway, large savings = bigger than the state pension would be anyway.
I just think that it is a huge risk to not bother saving on the off chance a future government makes a politically suicidal decision.

But even then, most people would still be better off having saved something

Well with the current system it's much better to not save anything and not buy a house and get housing benefit and pension credits.

But the system will be different in 20-30 years.

These people that blow all their money and expect the state to fund them deserve to live in poverty.

That's lovely. We have no spare money and budget like crazy to survive. Now you 're saying we deserve to live in poverty?!

What should SAHPS do when it comes to pensions? My friend doesn't quality for child benefit because her DH earns too much but I know she doesn't have a pension.

I guess sahp's without a pension have to hope their partners pension will be enough for them both. Then again they can start full time work once the kids are old enough and start paying into a pension. It just wont have as much time to build up as it would if you"ve started contributing in your early 20's. I worry about my own pension . Even though it is an Nhs one I have so many gaps from working abroad, leaving to do a fulltime degree and doing many years very part time raising 4 kids that I doubt it will be worth much.

WhichJob If the family finances allow (which they should if her dh earns above cb threshold) she should look into saving privately. Lifetime ISAs are a fairly new thing - I mentioned them up thread but there might be better options for their circumstances. Worth looking into:
www.moneysavingexpert.com/savings/lifetime-ISAs

SAHPs can get a stakeholder pension. They ought to be claiming CB and their higher earning spouse/partner will pay it back in taxes so they get their NI cover and some of this can be paid into the stakeholder pension.

I need an urgent financial review. In the latest round of NHS pension reforms, they linked it to the State pension age, so it has changed from me getting it at 60 to now being 68. Makes me mad that they can just change the terms, when you've been planning on the basis of something else. Plus, no doubt it will go up to 70 and then I'll be really screwed

You can claim child benefit but elect not to receive it and you will still get NI credits. You don't have to receive the child benefit and pay it back through a tax code.

See here
www.gov.uk/child-benefit-tax-charge/overview
"If you’re affected by the tax charge
You can choose not to get Child Benefit payments, but you should still fill in the Child Benefit claim form. This will help you get National Insurance credits which count towards your State Pension."

Thanks all. He is, in my opinion, financially abusive so she regularly goes overdrawn buying the shopping while he has savings. but that is another thread. I didn't realise that she could continue to claim CB if he pays more tax, I only know she doesn't receive it when I tried to unpick why she was so miserable about money.

Ivy, thank you, I will send her that link.

Brexit A lot of people who have no savings/private pension are in that position because they can't save, not because they won't. I really hope that what you predict doesn't come true, and disagree with your assessment of the current system. I do think, though, that the attitude proposed by brasty is not only a stupid gamble, but is also selfish. What if everyone assumed that there was no point in saving, because the government will means test the state pension? If everyone in my generation decides "fuck it, I wont save a thing because the government will definitely look after me and I don't want anyone else getting a handout unless I get it too." I know there is resentment amongst some of the younger generation towards boomers, but can you imagine what our grandchildren would think of us? If what you predict comes to pass (and I don't think it will), we will be putting a far higher burden on them than the baby boomers put on us. In fact, meaningful help for anyone (including people who were unable to save through no fault of their own) becomes completely unaffordable. And if what you predict doesn't happen - if state pensions remain universal, but are a pathetically small amount, then how will we live? If we're lucky, we might get to spend our elderly years camped out at our kid's/grandkid's house. Who might be rather pissed off if they realised that the reason we were there was because we had spent all the money we earnt "enjoying ourselves because saving isn't worth it".

FlowerFairyLights You do not deserve to live in poverty, now or in the future. I really hope that your situation improves and that you are able to start saving as well as enjoying a decent quality of life.