To think 71 is too old for state pension age?

[winterwonder1]

This isn't just for people who are 21 now - that's for people born after 1970 - so 55 now. I can't imagine being fit enough to do my job at 71.
DWP State Pension age will have to rise to 71 says report | News Shopper

No one would stop you from going earlier, you'd just have to fund it yourself.

Its fine, AI will apparently be doing everyone's jobs (except for the useful jobs) by then anyway, so nobody will need to be working any more. That's what Elon Musk said. So it is definitely true.

@jellyfishperiwinkle in the 60s it was 5 workers to 1 pensioner, it's now 3:1 & not far off 2:1. Plus upcoming generations of workers don't even own their own homes or have social housing. it's a mess.

Yes. I think there will be the need for more state subsidy, not less.

My DB pension will be 4 times that.

How many DB schemes about now?!

Working until 71 is absolutely crazy for many jobs ! Many jobs do not pay enough for the average person to pay into a decent pension plan.
Where will the jobs be for younger people if older people are expected to work to 71?
What are your thoughts @Duckinahat ?

What’s the point of saving anything for retirement when the government is planning on taking most of it from you in more taxes. There is zero incentive to save or pay into a private pension.

& shit prospects will exacerbate the issue with more younger people going elsewhere. Immigration is never going away.

In many sectors it’s very, very difficult to find a new job once you are over 50. Over 60? You might as well forget about it in many sectors.

You are not wrong, but it's why everyone needs to take out a private pension as soon as they can.
It has been the case for decades that the state pension alone is insufficient for a comfortable retirement. Really, it's just a top up.

My incentive, part from not having a rubbish old age, is that I don't get taxed on the pension contribution as it comes out before tax. I pay in hundreds a month but the difference in pay is only about £100 a month.

I don't think so. I only started a private pension 10 years ago that's only because it went with a retail job. I am 60 now no savings.

Firefighters - like Police Officers - pay heavily into their pension and retire after 30 years service. So can retire in many cases around 50 with their private pension so an increase of state pension age won't impact them the way it would the rest of us

The state pension is a bonus really let's be honest. It should be viewed as an extra and not relied on. Its making me laugh on this thread where everyone is saying 'I couldn't still teach age 71' 'I can't imagine a 70 year old firefighter' - two professions where they definitely do not need to rely on or wait until state pension age to retire - they have fabulous pensions!

I'm 40 and I'm saving hard for retirement (despite also paying nursery fees) and overpaying my mortgage (can only afford £100 per month but its something)

We all have a responsibility to save for our own retirement and the state pension must not be relied upon.

It also doesn't dictate what age you choose to retire just FYI - minimum pension age is 55 rising to 57 at the moment.

I asked an IFA if it was worth buying back NI for the state pension - they couldn’t give me an answer. I don’t think there will be one by the time I get there (if I get there at this rate..!)

@Funykeudfh It’s been pointed out that the TPS is tied to state pension age. I can’t claim my TPS til 68, so yes, there will be 68 year old teachers.

It's ridiculous. People in their 50s struggle to get jobs due to ageism as it is. I don't think you realise when you're younger how much you just feel tired as you get older. Not everyone is fit and sprightly as they get older, some people have a lot of physical issues.

We all have a responsibility to save for our own retirement and the state pension must not be relied upon.

What about current pensioners? And you would abolish pension credit?

If I retire early though my pensions is actuarially reduced. Both my work pensions are tied to state pension age. If that increases then I still can’t retire early without losing some money.

The average age for death is currently 78.6 years for males and 82.6 years for females. You knock at least 10 years off that for people in poverty. Given that poverty is increasing, the good news is that many won't ever draw a pension so that's going to save a lot of money. The bad news is that we'll see massive increases in sickness rates. For example, for men, healthy life expectancy (not death, but the amount of time people are healthy) ranges from 58.1 years in Barking and Dagenham to 70.2 in Richmond upon Thames. And in Bradford, 35% of people dying die in poverty.

I suppose the expectation is that everyone will have saved into a personal pension and won't be relying 100% on the state pension.

I don't think there should be any opportunity for opting out of the employee auto enrolment pension schemes. It's too tempting for people to want to ease their everyday monthly expenses in the short term and opt out, saying that they can't afford to contribute. Then forty or fifty years down the road, they'll regret not having paid in when they were young.

@Funykeudfh i think in the private sector it’s becoming very difficult for lower wage earners to accumulate a sufficient private pension.

so many jobs are not full time or permanent or pay too little.

Since when has teachers pension been tied to state pension age?! Is that a new thing. That's shocking - that would be a quick thing for the government to change to encourage new teachers to apply. What a awful rule.

The original Old Age Pension introduced in 1908 only paid out to those aged 70 or over (and you had to be 'of good character' !). And I think that was when life expectancy was only a little bit higher than that.
Now people are getting paid State Pension for decades and it's simply not sustainable.

Going forward I think there are three options to make the cost of State Pensions affordable - either increase the age at which you start paying it, decrease the amount (by abolishing the triple lock and letting it deflate away) or means testing it.

There is a difference between retiring and receiving state pension - I'm retired and have been for a number of years, am just about to start receiving a work pension but won't get my state pension for a couple of years yet. If people want to stop working before they reach State Pension Age then they need to plan how they will manage to fill in the gap, probably by using savings and/or drawing down other private pensions.

That’s your occupational pension. I’m talking about savings and investments outwith pension products. ISAs. Downsizing your house. These are the things you need to do if you want to retire before pension age. When the state pension was introduced it was designed to only cover a couple of years, if that. Now people are expecting to life off it for 20+ years and that’s totally unaffordable.