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Was Anybody Planning On Retiring At 55?

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http://www.telegraph.co.uk/finance/personalfinance/pensions/10982177/Age-40-No-access-to-pension-until-58.html

The age at which savers can access their retirement savings will rise with life expectancy, the Government's pension plans have confirmed.

It will mean those aged 40 or under will not be able to take advantage of the much-lauded new pension freedoms until at least age 58, rather than the current age of 55.

The "private pension age" will rise from 55 to 57 in 2028 and will then be linked 10 years below the state pension age, which is already due to be linked to longevity.

However, last year the Treasury suggested faster increases in the state pension age (see below) that will see those aged around 40 unable to collect their payments until 68 rather than 67.

Those aged in their early twenties will not be eligible for state payments until age 70, under the plans, which will mean no access to their private savings until age 60.

Oh well.

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I'm 35 now, looking forward to taking out a £100k mortgage and starting a family next year.

No pension as I never had a job with a company pension and I have never put into a personal pension as every penny I have ever earned is saving towards buying a home to live in.

No point in having a pension where there is debt acuring interest.

I'm in the software industry at the moment, can't see me writing software at 70 and never met anyone over 50 who has. I expect I will play the second hand markets and benifits system after the age of about 55. If I can get the mortgage paid off and some off balance sheet savings (cons & stamps mainly) then we should be ok for a while. Wife doesn't have a pension and will be off work for a few years with kids.

You never know what's going to tuen up in live. This time 5 years ago I had a £130k Northern rock mortgage, a crumbling house and not a penny to my name so things are getting better.

Edited by Wurzel Of Highbridge

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I was planning to retire at 55 but retired at the grand old age of 47.

I was planning on working to 67 but got pissed off and went 3 days/week at 44 and haven't worked since I was 47, may do a bit of part timing in my 50s.

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I retired at 55 about a year and a half ago. I'd originally planned to retire at 50 but then I got cold feet about running out of money. When I was about 52 or 53 the rules changed and 55 became the minimum age to draw a pension. When I hit 55 I thought the rules could change again and if I wasn't careful the minimum age would start racing away from me, so I took a deep breath and jumped.

Wish I'd been braver and retired at 50.

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Im working till the war starts then buying a huge yacht and getting the f**k out of here.

Funny you say that, I've just changed boats and way way at the back of my mind a little voice was saying, "if everything went t1ts up how far could this one take you?" Course you never mention it to anyone and I've never really dwelled on it, but the sentiment was certainly there.

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I plan to work 2 days a week (10 hours) before retiring in a years time at 56

Can I live on savings of £70,000 for 10 years ? (get the state pension at 66)

Sure I can.

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I managed to get out at 55....now 56, but found the attraction of occasional short term contracts irresistible. I work for 3 months then stop for 3. Cashed all the pensions early and took a 25% hit; the reason being I want to enjoy the money while still fit.

Funny thing is....having retired, I've never had so much cash in the bank...but of course no job security. I've crashed my overheads to minimum.

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I assume those that retired early didn't like their jobs and were highly paid?

I did enjoy my job, but it required at least twenty long haul trips a year, and that gets a bit old after you've done it a few times.

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I assume those that retired early didn't like their jobs and were highly paid?

Not really loved my job but hated the driving congested motorways etc, company I worked for got bought out by an American giant who evidently didn't like people over 50 in sales managenent preferred young graduates ,got a good offer on early retirement so off i went, life is too short,I still do a bit of work but it is a bit love the sports racing walking etc summers great winter can get a tad boring now and then but as the song goes no regrets.

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Do any of you boomers think it is wrong that babies should be born into debt and servitude?

I mean little babies not even born into this world, in debt to the tune of £200k.

Do you ever feel guilty about it?

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I managed to get out at 55....now 56, but found the attraction of occasional short term contracts irresistible. I work for 3 months then stop for 3. Cashed all the pensions early and took a 25% hit; the reason being I want to enjoy the money while still fit.Funny thing is....having retired, I've never had so much cash in the bank...but of course no job security. I've crashed my overheads to minimum.

I'll be out at 55 and I'll happily take the 15% penalty hit on my employer db pension. Overheads will also be minimised. I'm all for working on an on/off basis after that, but on a want to not need to basis. To avoid dissapointment I've decided in advance the state pension might not exist in 22 years when I'm supposed to collect it. The cost of living and attaining material goals involves so much hard work now, so rather than spur me on to keep going into my late 60s, its had the opposite effect which is sod this, I'm quitting asap.

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I'm 35 now, looking forward to taking out a £100k mortgage and starting a family next year.

No pension as I never had a job with a company pension and I have never put into a personal pension as every penny I have ever earned is saving towards buying a home to live in.

No point in having a pension where there is debt acuring interest.

I'm in the software industry at the moment, can't see me writing software at 70 and never met anyone over 50 who has. I expect I will play the second hand markets and benifits system after the age of about 55. If I can get the mortgage paid off and some off balance sheet savings (cons & stamps mainly) then we should be ok for a while. Wife doesn't have a pension and will be off work for a few years with kids.

You never know what's going to tuen up in live. This time 5 years ago I had a £130k Northern rock mortgage, a crumbling house and not a penny to my name so things are getting better.

I was planning on working to 67 but got pissed off and went 3 days/week at 44 and haven't worked since I was 47, may do a bit of part timing in my 50s.

I retired at 55 about a year and a half ago. I'd originally planned to retire at 50 but then I got cold feet about running out of money. When I was about 52 or 53 the rules changed and 55 became the minimum age to draw a pension. When I hit 55 I thought the rules could change again and if I wasn't careful the minimum age would start racing away from me, so I took a deep breath and jumped.

Wish I'd been braver and retired at 50.

The thing is the evidence from this thread and I'd say my experience in general is that:

1) People seem to now only be buying homes in their mid thirties - perhaps a reflection of how long it takes to earn half decent money and how long it takes to get some savings together.

2) Whilst at the same time they seem to be retiring in their mid 50s - which I also take as meaning it is harder to find decent work after 55.

I am not sure how that quite stacks up economically, as it could mean someone only really making financial headway in their work for 20 years, hardly enough time to pay off a mortgage and build a pension.

I must remember to open a pension for my 2 year old and 3.5 year old next week!!!! Oh, and buy them a house each!!!!!!

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Around me I see people (PAYE) hanging on to big salaries (£50-60k) and turning up at the office each day and doing FA with their lives. I see people collecting final salary pensions of £25K plus then persuading their emplyers to have them back on contract, because they cannot afford to retire (FFS). And I see people hanging onto jobs they don't enjoy simply because they cannot give up the pension they may one day collect - they are all prisoners.

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The thing is the evidence from this thread and I'd say my experience in general is that:

1) People seem to now only be buying homes in their mid thirties - perhaps a reflection of how long it takes to earn half decent money and how long it takes to get some savings together.

2) Whilst at the same time they seem to be retiring in their mid 50s - which I also take as meaning it is harder to find decent work after 55.

I am not sure how that quite stacks up economically, as it could mean someone only really making financial headway in their work for 20 years, hardly enough time to pay off a mortgage and build a pension.

I must remember to open a pension for my 2 year old and 3.5 year old next week!!!! Oh, and buy them a house each!!!!!!

You could argue that its nearly 40... So its 15 years to jump through all the hoops...For me, being retired for 25 years would leave me bored to tears... There's only so much gardening and golf you could do before breaking point...

Edited by Dave Beans

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I'm sort of relieved. My tax-costly reluctance to SIPP wrap wonga has been justified. I never trusted the govt and always reckoned this would happen.

I'll be out of here long before 55 inshalla. And I have a 30ft boat.

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You could argue that its nearly 40... So its 15 years to jump through all the hoops...For me, being retired for 25 years would leave me bored to tears... There's only so much gardening and golf you could do before breaking point...

*****ing ? Drugs ? Drinking ? Hoors ?

Broaden your horizons.

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*****ing ? Drugs ? Drinking ? Hoors ?

Broaden your horizons.

None of it will work by then anyway to take full advantage... :)

Edited by Dave Beans

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When I started my first proper job (Civil Service) at 22 they had a final salary pension scheme indexed to RPI that paid out at 60, but you could take it at a reduced level from 50. As far as I recall employees weren`t required to make pension contributions, or if they were they were too small for me to notice enough to remember. Enrolment was voluntary.

If you started in that same job today you`d have a "Career Average Revealed Earnings" pension indexed to CPI that doesn't pay out until some random date in the future that is at least after you turned 68, and with a promise to review that age (probably upwards) 5 or 6 times before you get to 68. My former colleagues tell me that employees are now required to make "noticeable" contributions. Enrolment is automatic and if you opt out you`ll be re-enrolled every year.

I`m now in the University (USS) scheme. Those who enrolled before a certain date are final salary, all new entrants are CARE with a caveat that they`ll only match CPI up to a defined percentage cap. 3 or 4 years of double digit inflation will destroy the buying power of this pension. For the final salary people the cap only applies in retirement. For the CARE people the cap is applied to their revaluation calculation each year. The retirement date is now to be "fixed" to the official state pension age, and so will inevitably be pushed back several times over the next few decades.

The pensions were clearly unaffordable.

What ******s me off is that all of the additional costs and reduced benefits are being loaded onto the younger people. All the drawbridges have been drawn up and a lot of older people have sloped off with entitlements that will beggar their children and/or grandchildren.

All this has happened without most people even seeming to notice.

Edited by SpectrumFX

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All this has happened without most people even seeming to notice.

...or care...Most live in the world of "I'm alright jack"... In the next twenty years, its going to be an extremely common sight in seeing 70 year olds at work...

Edited by Dave Beans

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