State Pension Age Speculated To Rise To 75-81

[SpectrumFX]

What about a good public sector or private index linked pension?

That depends on the terms of the scheme. As far as I'm aware civil service, council and university pension schemes still allow spousal inheritance (I'm in all three). I think SIPPs are also inheritable. Not sure about private pensions outside a SIPP. I've got one of those too, so should find out really

[campervanman]

Sadly the situation here in the UK is one of "i'll be alright jack" with all eyes on the "cash in and downsize" "my buy to let is my retirement" etc

When the French government tried raising the pension age a couple of years ago i believe there was quite a bit of social unrest? and the age increase was swiftly dropped.

The French are increasing the retirement age to 67 by 2023. Not that different than the UK.

[Simon Taylor]

Nice sentiment but do you really think that is going to make any difference at all?

How about spending that time figuring out how to retire without the State Pension. That way you're at least in control of your own destiny.

Indeed.

I find is absurd that people so willingly accept the media line that '..government raises pension age..' or '..government makes you work longer for pension..'.

The age at which you retire is entirely in your own hands and government policy is irrelevant unless you are building your retirement dreams around a state pension system which is already illusory for a lot of people in their thirties.

[man o' the year]

That depends on the terms of the scheme. As far as I'm aware civil service, council and university pension schemes still allow spousal inheritance (I'm in all three). I think SIPPs are also inheritable. Not sure about private pensions outside a SIPP. I've got one of those too, so should find out really

I may be wrong but my understanding is that spousal inheritance only occurs if you die in service.

[workingpoor]

The French are increasing the retirement age to 67 by 2023. Not that different than the UK.

Well there were certainly violent protests over it:

http://www.cbsnews.com/news/violent-protests-in-france-over-retirement-age/

[stormymonday_2011]

What about a good public sector or private index linked pension?

The old civil service pension spouses benefit was a half rate pension for life. A new Civil Service scheme was introduced in 2015 and the lifetime benefit was abolished. Nominees now receive a one off payment equal to twice final salary or 5 times annual pension so essentially no spouse can inherit more than 5 years worth of the partners pension now (equivalent to 10 years half benefit on the old scheme).

Edited March 14, 2016 by stormymonday_2011

[winkie]

The old civil service pension spouses benefit was a half rate pension for life. A new Civil Service scheme was introduced in 2015 and the lifetime benefit was abolished. Nominees now receive a one off payment equal to twice final salary or 5 times annual pension so essentially no spouse can inherit more than 5 years worth of the partners pension now (equivalent to 10 years half benefit on the old scheme).

Thanks.....still could be quite a fair sum, but can understand why benefits have been cut back because the old benefits were unsustainable in this day and living age.

[porca misèria]

People with money always have these options. Investment visas.

That would take a lot more money than the person I was following up to.

[stormymonday_2011]

Thanks.....still could be quite a fair sum, but can understand why benefits have been cut back because the old benefits were unsustainable in this day and living age.

Contrary to popular belief the average civil servants pension clocked up at about £5900 per year on the old scheme so I doubt most of them retire rich

http://www.telegraph.co.uk/finance/personalfinance/pensions/7842767/What-is-a-public-sector-pension-worth.html

Widows half benefit on that would be about £3000 a year so less than the current State Pension

The benefit of the old civil service pension scheme was the low contribution required by members which was just 1.5% of salary and the indexation of pensions rather than the huge payout

The new scheme introduced in 2015 is based on career average salary rather than final earnings and the employees contributions rate has increased to between 4.6 to 8% depending on pay grade. Civil servants also have to work to full state retirement age now before they can draw it without actuarial deduction. Unless you are planning to marry a member of the civil service First Division Association for his or her pension then i would probably suggest forgetting it. There has been easier money to be made from Tax Credits

[wish I could afford one]

That would take a lot more money than the person I was following up to.

I'm not so sure. Cyprus as an example:

- Buy a EUR300k home

- Deposit EUR30k in a Cypriot bank

- Can't work

- "Income" of EUR30k from pensions, stocks etc + EUR5k per dependent

And not much else = indefinite immigration permit.

£1million of wealth would nearly achieve the above I would guess... Challenge that I haven't figured out is healthcare once I get very old.

[stuckin2up2down]

That would take a lot more money than the person I was following up to.

I think a Mill in pounds is enough to emigrate to most places, in the med countries im sure way less would do.

A mill would probably get you into USA or OZ.

[Mikhail Liebenstein]

Like a few on here, I have no issue throwing some of this cost back on the boomers.

If we are raising the pension age to 67, then it should apply to everyone at once and indeed if it goes to 77 we should do the same and that means stopping paying pensions to people who are currently getting them. To expect the millennials to work into their 80s, so the boomers can lay back in their 60s and early 70s on pensions they haven't paid for is not fair.

As a GenXer, I am comfortable with this, as I kind of expected it and so have been saving appropriately. The only thing that really annoys me though is that I could save even more and wouldn't need a state pension if I could lower my tax bill. Again all this tax is going to support health care and social security for people who haven't paid in.

I do think we need a contributions based system as the Lib Dems have suggested.

[workingpoor]

The Express was trying to convice everyone that old age starts at 85 yesterday

http://www.express.co.uk/news/uk/652587/Old-age-85-active-British-pensioners

I was 40 yesterday and if 80 if the new life expectancy? then i'am now middle aged.

However i suspect i have been middle aged since age 35

[CunningPlan]

The Express was trying to convice everyone that old age starts at 85 yesterday

http://www.express.co.uk/news/uk/652587/Old-age-85-active-British-pensioners

I was 40 yesterday and if 80 if the new life expectancy? then i'am now middle aged.

However i suspect i have been middle aged since age 35

If life expectancy is 80, I would propose that the three ages bands (young / middle / old) are actually 0-27, 28-53 and 54-80

Sorry to all those middle aged 28 years olds out there.

[Democorruptcy]

I think a Mill in pounds is enough to emigrate to most places, in the med countries im sure way less would do.

A mill would probably get you into USA or OZ.

Have you got a list of amounts required per country?

[AThirdWay]

.

Edited March 15, 2016 by AThirdWay

[stuckin2up2down]

Have you got a list of amounts required per country?

I imagine its a bit more complicated than that.

Seen one site saying for oz its 5 mill

http://www.workpermit.com/news/2013-11-14/australian-immigration-to-fast-track-special-investment-visas

But another says you could get it for investing half a mill in property. They probably dont want to publicise it as the vast majority can't afford it.

In Bolivia an investment visa could be got for 30k US

[Democorruptcy]

I imagine its a bit more complicated than that.

Seen one site saying for oz its 5 mill

http://www.workpermit.com/news/2013-11-14/australian-immigration-to-fast-track-special-investment-visas

But another says you could get it for investing half a mill in property. They probably dont want to publicise it as the vast majority can't afford it.

In Bolivia an investment visa could be got for 30k US

I was really meaning which places you thought had the cheapest living costs not entry requirements. I suppose it relates to wages, the lower they are the further your cash goes?

[VeryMeanReversion]

The age at which you retire is entirely in your own hands and government policy is irrelevant unless you are building your retirement dreams around a state pension system which is already illusory for a lot of people in their thirties.

Good point but not the whole story. If you are using a pension wrapper, you can only get your hands on it from state pension age minus 10 years.

[porca misèria]

Good point but not the whole story. If you are using a pension wrapper, you can only get your hands on it from state pension age minus 10 years.

[ObPedant] From age 55, actually. Which is rather more than 10 years off state pension age.

And for those born before April 1960 they could access those pensions at age 50, even further off state pension age.

[winkie]

[ObPedant] From age 55, actually. Which is rather more than 10 years off state pension age.

And for those born before April 1960 they could access those pensions at age 50, even further off state pension age.

Yep, a thin line between 0 and 5 years......a few hours or months makes big differences.....

[stuckin2up2down]

I was really meaning which places you thought had the cheapest living costs not entry requirements. I suppose it relates to wages, the lower they are the further your cash goes?

Well the cheapest places are probably somewhere you wouldnt want to live.

Personally I'm interested in Panama / Ecuador / Boliva in places that don't really need heating or cooling all year round and you can grow stuff all year round.

[stuckin2up2down]

[ObPedant] From age 55, actually. Which is rather more than 10 years off state pension age.

And for those born before April 1960 they could access those pensions at age 50, even further off state pension age.

When I signed up to my pension (8 years contributions and payed extra to avoid higher rate tax, employer paid 6% so its quite a large pot) i ticked the box that said to retire at 50. Will I be able to get it at 50?

[porca misèria]

When I signed up to my pension (8 years contributions and payed extra to avoid higher rate tax, employer paid 6% so its quite a large pot) i ticked the box that said to retire at 50. Will I be able to get it at 50?

Ask your pension provider if you have any such rights protected under the old rules. I have no idea. Never looked into it myself: I didn't have the money to start a pension until too late to catch the old rules. I did have to say "no" when my provider asked if I would be transferring any existing pension with protected rights, but that's as close as I've been.

Off the top of my head, I believe protected rights do include the 50% tax-free lump sum and the higher lifetime allowance under the old rules.

[stuckin2up2down]

Ask your pension provider if you have any such rights protected under the old rules. I have no idea. Never looked into it myself: I didn't have the money to start a pension until too late to catch the old rules. I did have to say "no" when my provider asked if I would be transferring any existing pension with protected rights, but that's as close as I've been.

Off the top of my head, I believe protected rights do include the 50% tax-free lump sum and the higher lifetime allowance under the old rules.

I know I should but I think its probably better to hold off, doubt it will be good news.

I also for 8 years contracted out of the state pension, seeing as I was in my 20s I assumed I wouldnt get one. That will probably have ramifications.