Millions To Work Longer For A Pension As Life Expectancy Rises

[RentingForever]

Expect to see more workplace funerals.....die on the job.

Lots of workplaces offer death-in-service payments. Wonder if the insurers will step in and start refusing to cover those over 65 who still have to work as the retirement age gets older?

[Si1]

Indeed. Have noticed a load of guys around that age who look on their last legs, yet only 5-7years ago looked as fit as a fiddle.

I heard from a medical doctor that they reckon a meaningful job is really good for you. Often people do kick the bucket very shortly after retirement.

Personally I hope to keep my meaningful and never fully retire, slow down, reduce my hours, but not retire fully

[winkie]

I heard from a medical doctor that they reckon a meaningful job is really good for you. Often people do kick the bucket very shortly after retirement.

Personally I hope to keep my meaningful and never fully retire, slow down, reduce my hours, but not retire fully

.....it all depends what you call the definition of 'job' or 'working' is.......most people continue to work after retirement....working or having a job to do doesn't necessarily mean earning money......to be honest most people unless they are unwell never stop working.

[TheCountOfNowhere]

I heard from a medical doctor that they reckon a meaningful job is really good for you. Often people do kick the bucket very shortly after retirement.

Personally I hope to keep my meaningful and never fully retire, slow down, reduce my hours, but not retire fully

I'd like a job in the public sector or maybe an M.P.

Edited December 5, 2013 by TheCountOfNowhere

[cashinmattress]

I heard from a medical doctor that they reckon a meaningful job is really good for you. Often people do kick the bucket very shortly after retirement.

Personally I hope to keep my meaningful and never fully retire, slow down, reduce my hours, but not retire fully

As motch said, we just cease being able to do things at certain ages. Genetics and decades of abuse to our bodies compounding the problem.

For men, a whole lot lose a significant portion of their dexterity in their mid 60's, some earlier.

Plus 60-somethings fatigue much faster than even 50 somethings, generally speaking.

Edited December 5, 2013 by cashinmattress

[stormymonday_2011]

Main issue is the poor die much sooner than the wealthy so deferring retirement age is another wealth transfer from poor working people to wealthier rentiers.

+1

The pension system favours rich Tory voting southerners who live as much as 8 years longer than poor northerners.

http://www.ons.gov.uk/ons/rel/subnational-health4/life-expectancy-at-birth-and-at-age-65-by-local-areas-in-england-and-wales/2010-12/stb-life-expectancy-at-birth-2010-12.html

The average man living, working and dying in Blackpool will have received about half the amount of basic state pension by the time he dies compared to his East Dorset counterpart. My back of a fag packet calculations using todays pension value shows that the former will receive in the region of £40,000 less than the latter. That is a huge discrepancy which dwarfs the proposed changes in retirement ages between generations which as you point out basically just reflect the change in the basic school leaving age over recent decades (ie the potential number of working years available to accrue contributions prior to retirement will not change greatly).

Of course, it could be claimed that the former pay more NIC but it is qualifying years not total contributions that is used to calculate the State Pension entitlement and there is an upper earnings cap on employees paying full Class 1 contributions

If Osbourne was actually basing changes to retirement age on actuarial reality there would be a lot of pissed off elderly Tory voters in the UK

Edited December 5, 2013 by stormymonday_2011

[Dorkins]

I'd like a job in the public sector

What's stopping you from applying? Anybody can have a piece of paper promising a generous final salary pension that will never materialise.

[winkie]

Lots of workplaces offer death-in-service payments. Wonder if the insurers will step in and start refusing to cover those over 65 who still have to work as the retirement age gets older?

...Like a lot of these benefits for most people in most jobs over the years they are being diluted or an extra cost is attached to them.....maybe the life cover will be the total accrued sum of the pension pot, not a lot.

[Democorruptcy]

You can retire at any age you like,you just wont get a government pension.The new pension will be around £150 a week.If you can access a private/work pension at 55 that pays say £100 a week you need to find £150 a week for 13 years.So about £90k.Thats if your happy to retire an a grand a month.Very easy in my eyes if you have no debts etc.

All depends on peoples needs of course but as long as you have some for of pension you can get at 55 its still very much in range for most people.Of course if you have no savings and/or no pension then its a different story.

About £90k is a bit low, as £150 x 52 x 13 = £101,400

Doesn't that lock in a permanently lower standard of living as each day the £150 buys less due to inflation? Or are you expecting investment returns to cover that on the initial £90k lump as you draw it down?

Does this grand a month assume you own a house and are mortgage free?

[justthisbloke]

Yep, me: March 68.

I'm basically resigned to the fact that the rest of my life is going to be this: http://www.thedailymash.co.uk/news/society/workers-carrot-to-remain-slightly-out-of-reach-2013120581726

Sept 69.

But I've never expected a state pension so it doesn't effect me. My expectations and plans are unaltered by government whim on pensions.

I bet the buggers get me with tax changes though. As I've had the temerity to plan for my own future it means I have a juicy wedge of wonga. When Labour get in they'll start taking it off me for the crime of being "rich" (aka not in debt and not beholden to the state).

[StainlessSteelCat]

About £90k is a bit low, as £150 x 52 x 13 = £101,400

Doesn't that lock in a permanently lower standard of living as each day the £150 buys less due to inflation? Or are you expecting investment returns to cover that on the initial £90k lump as you draw it down?

Does this grand a month assume you own a house and are mortgage free?

Plenty of people do live on a grand a month incl rent/mortgage. Would be much easier if you were an owner (rather than a mortgage payer). I reckon most would live very comfortably on £1K/month tax-free if they had no rent/mortgage to pay and weren't paying work related costs.

I guess I'm a pessimist/optimist. While the state pension won't disappear, there is plenty of opportunity to move the goal posts over the next few decades so I can't rely on it. On the other hand, private/company pensions have had such a bad press and the mainstream view of the populace is that they are worthless - that I lean towards to a contrarian view that they will be made more appealing in the future. For example, I doubt annuity rates will remain rubbish all of the next 2-3 decades so I plan to get as much investment here done up front so I have a long window (55-65) to pick the ideal time to retire in. Equally, I need to give some thought to alternative assets (not BTL) should that not prove the case.

Edited December 6, 2013 by StainlessSteelCat

[Ash4781]

With auto-enrollment is there no opt out? On channel 4 news last night I think fasial islam said babies born this year would have to work to 77.

[PopGun]

With auto-enrollment is there no opt out? On channel 4 news last night I think fasial islam said babies born this year would have to work to 77.

No they won't.

Once the unemployment rate breaches 75% you watch those same loons crash down the retirement age to massage future unemployment figures.

Edited December 6, 2013 by PopGun

[TheCountOfNowhere]

With auto-enrollment is there no opt out? On channel 4 news last night I think fasial islam said babies born this year would have to work to 77.

That wont happen. WWIII will reduce the population considerably.

[19 year mortgage 8itch]

With auto-enrollment is there no opt out? On channel 4 news last night I think fasial islam said babies born this year would have to work to 77.

There were a couple of tweets about that. the figures came from some PWC projections.

[Democorruptcy]

Plenty of people do live on a grand a month incl rent/mortgage. Would be much easier if you were an owner (rather than a mortgage payer). I reckon most would live very comfortably on £1K/month tax-free if they had no rent/mortgage to pay and weren't paying work related costs.

I guess I'm a pessimist/optimist. While the state pension won't disappear, there is plenty of opportunity to move the goal posts over the next few decades so I can't rely on it. On the other hand, private/company pensions have had such a bad press and the mainstream view of the populace is that they are worthless - that I lean towards to a contrarian view that they will be made more appealing in the future. For example, I doubt annuity rates will remain rubbish all of the next 2-3 decades so I plan to get as much investment here done up front so I have a long window (55-65) to pick the ideal time to retire in. Equally, I need to give some thought to alternative assets (not BTL) should that not prove the case.

Pension Credit currently tops up your pension to £145.40 a week

If I put that I've retired now with a £70 state pension and no savings, it says I can claim £75.40 a week. So as it stands no point in paying my missed NICs.

On housing costs if I put I have an outstanding £100k mortgage it gives me an extra £70 a week housing costs.

If I put no mortgage but a £1,000,000 a week service charge it says I can claim £1,000,075.40 a week. A nice little earner for builders/management companies overcharging, knowing taxpayers are footing the bill. This must be one of the main reasons why people living longer is costing so much.

It doesn't mention rent so I assume you claim housing benefit for that?

http://pensions-service.direct.gov.uk/en/pension-credit-calculator/calculate.asp

[Eddie_George]

That wont happen. WWIII will reduce the population considerably.

Send the pensioners off to war!

[durhamborn]

About £90k is a bit low, as £150 x 52 x 13 = £101,400

Doesn't that lock in a permanently lower standard of living as each day the £150 buys less due to inflation? Or are you expecting investment returns to cover that on the initial £90k lump as you draw it down?

Does this grand a month assume you own a house and are mortgage free?

Its just rough figures but yes youd need to be mortgage free or rent would eat up the capital too fast.There would be some interest/dividend growth hopefully during the drawdown stage.It would of course be much better if you had say £120k as a bit of a buffer.

Also of course a lot of people will inherit around that age as well.

I don't count standard of living as income,,i count it as having enough to live and be free.I have a far better standard of living now working 20 hours for myself a week than I did on double the earnings in a job.

What is does show is why the government need everyone with massive mortgage debts,,its those that ruin peoples lives and keep you working.

[Billy soy]

That wont happen. WWIII will reduce the population considerably.

This is a slow motion population reduction , targeted towards working class, non Tory voters. Cost of living increasing, living standards falling therefore life expectancy will fall.

That's before the economic situation worsens and the end of free healthcare which will take their toll.

The future looks very grim.