To think pensions need huge reform?

[aburrsir]

With all of the recent chat over changing politicians and big ideas that don’t go anywhere, I can’t be the only one who thinks that someone needs to bite the bullet with pensions?

It’s something ridiculous like 50% of the welfare budget annually, and this is never going to go away.

IMO the government need to hike up retirement age and scrap the triple lock. There can be provisions made to go along with this to phase this in for those in genuine need (e.g. for the next 10 years those with no private pensions can get a top up to cover the transition period).

I’d rather know “look you can’t retire until 75” now than this constant “it’s 67…. now wait it’s 68…..” that never ends.

It seems that all governments are scared to do such a big change as it will piss off older people (who are the primary voting demographic) but something needs to change as this is just completely unsustainable long term.

We’re better off making these changes to ensure the state pension can continue sustainably in the long term future rather than having this attitude of “as long as I’m alright I don’t care”

We need a gov with long term planning goals and not just short term firefighting. AIBU?

There's been so many of these threads recently. Nudge theory in action?
You can retire whenever you please. What you mean is you can't get your state pension until 67/68/69 etc etc.

They could but would have to introduce change over the long term, like starting with today's 20 year olds.

No government has yet had the nerve

All that will happen is people will stop work due to ill health and claim other benefits.

Yes I agree poor wording on that comment, I did mean in terms of claiming state pension rather than when you choose to retire.

i just googled nudge theory and I can assure you I don’t work in the government and it’s not my job to convince the world it’s a good idea (even though I clearly think it is!)

Yes this was my thinking. I agree it’s unfair to fling this onto current retirees etc, but long term we should be planning to resolve the issue

Yanbu. It’s too high. They don’t (shouldn’t) have mortgages or children to pay for. And once you get too frail, you don’t need £200 a week, as you aren’t able to do anything with it. You’ve also had your whole life to contribute to a private pension. I know that sounds harsh, but what I am currently seeing around me is pensioners living the high life (I don’t know a single one who ‘can’t afford to eat’ even those on benefits only) but at the end other end, 30 year olds who aren’t starting families as they can’t afford it. I totally agree that something has to give.

Some people will, but some people will continue to work and thus continue to pay tax etc. The % who will claim sickness benefits etc is probably still worth making the change for the sake of the % who can carry on working

The OP seems to have very little idea of the average healthy lifespan of a person, particularly in certain areas of the UK. A daily tour around various hospital department waiting rooms might help.

There are many ways the Government can save money they just don’t have the balls to do it . Pensions and welfare are bankrupting the country and there’s only so much tax payers can pay .
Even tiny things like when I turned 60 I was surprised to receive free NHS prescriptions. I don’t need that I can easily afford them . I accept if someone needs 8 prescriptions a week it’s different but just 1 a month I don’t need for free . There must be others like me . Lots of little things add up when the money tree is wilting .

Im sure there will be changes dripping through.

I dont especially want state pension age to rise but i expect it will, but if it does it needs a bit of uncoupling from my other pensions which are linked to state retirement age also.

I had in my head part of the issue of pensions is not knowing how long you might live for and currently the state prnsion isnt much as a sole income so people top it up. But increasing the amount of weekly pensions to an amount you can actually live off which didnt need topping up but making it from, say 75 or 78 even would mean people coukd save for a set time period, say 60 to 75 and it be easier to managing instead of ekeing two smaller things out, spend all of one. Then if you are still alive get the other.8

So if people have to work for longer where are the jobs for the young ones going to come from?

Agree re. uncoupling from other pensions linked to state retirement age. Most public sector pension schemes are tied to this and it is seen as a selling point having a defined benefit pension. If the retirement age continues rising people who have diligently contributed are missing out on the flexibility and should at least be given an option of the same contribution level in a a DC scheme.

Current young people are already struggling with joblessness and an inability to get on with living independently and starting families. Although they'll have in mind the dissappointment of their chances of being able to retire, it would be an awful lot to dump on them.

I also agree re uncoupling workplace pensions. They should be fixed to be from a set age (say 57 for arguments sake) and that this won’t change dependant on state pension. Then those who have adequate pensions can retire sooner - arguably an incentive to prepare well for retirement!

I'm shocked anyone would advocate for people basically to work until they die. What a depressing future this world holds. I say again, Most people will just quit due to ill health and claim other benefits

I appreciate what you’re saying, but with the way things are going there won’t be a state pension to receive in 30/40 years! It’s using so much money that it just isn’t sustainable, making it work long term is in everyone’s best interest

Some people will, but some people will continue to work and thus continue to pay tax etc. The % who will claim sickness benefits etc is probably still worth making the change for the sake of the % who can carry on working
I'm sorry OP but I can only assume you are still quite young. People in their 60s are struggling to work. To pay valuable level of tax, most would have to work FT. Add the fact that as a nation, we are suffering with long term conditions at an earlier age, how do you expect the majority of people to be fit to work at 70?

And we are talking about a working age workforce that are more than ever claiming sickness benefits! If they are struggling to work for MH reasons at 30, do you really think they will be the people to work at 70?

What we need is working age people in work, preferably FT.

That’s already the case though - I can take my workplace pension now if I want.

Yes same here. They are all extremely well off in my local area. Huge houses, brand new cars, trolleys full of expensive food in M & S…

State pension age has been going up in a planned programme for the last twenty years.

You don't see the ones who are poor because they don't go out so much and when they do they go to different places. You don't go in the library to keep warm in the winter.

You don't see the ones who are poor because they don't go out so much and when they do they go to different places. You don't go in the library to keep warm in the winter.

This is my argument. Are we really going to want 75 year old security guards and HGV/bus drivers? Can people that age stand all day in retail (most companies that are not supermarkets do not allow you to sit? My dad retired at 60 from a job with a 1 hour 40 minute commute; how long is that feasible for the over-70s?

Only if you are 55. And from April 2028 it moves to 10 years below state retirement age.

You can take a public sector pension and lump sum early at a reduced rate. Just like any other pension except the state pension.