State pension age increase to 68 brought forward 7 years to 2037
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If we didnt have so many taking their gold plate Public sector pensions at 55 /60 and put in place the earliest they can take them is 60 and still taking a hit than if they left it to 65 then there would be more money enabling everyone both in the private sector and the public sector to get their State pension at 65 end of. Your own private pensions are a different kettle of fish and as youve personally funded it then this should remain at 55. With it now moved 3 years since they started meddling some are going take a £25k hit as previously stated. Its those who are taking the hit that are in effect funding those who have took the money and run at 55 and as we know many financially better off taking this option in the public sector than if they had carried on working. Which is impossible with private sector pensions.
I'll ignore your usual rant at the public sector other than to note that those able to draw their occupational pensions earlier than 60 were usually in occupations which had special reasons for it such as in which it was undesirable to have an ageing workforce like firemen, midwives, police. These options will not apply to new staff as those schemes have changed.
The other area where 55 was popular were private schemes where they represented a perk.
The other point to make is that unless your pension scheme forbids it you can retire at 55 in many schemes
For DB schemes this is mostly with an actuarial reduction. This means that you do not get more pension or subsidise anyone. Your pension is reduced to reflect early payment
But the private pension age is also rising:Amid the ebullient welcome when pension freedoms were announced last year, the small print buried in the Budget notes on the private pension age was largely ignored, although readers of these pages would have been alerted.
It said access to your own money - self-invested personal pension or company scheme - while rightly being made much easier, would also be later. Five or 10 years below the state pension age was the initial suggestion.
The Treasury, just a few months ago, opted for a more electorally palatable five years, starting in 2028. From then, the private pension age will rise to 57.
Because from then your private pension age will rise with the state pension age, the following applies.
If you're aged age 36 to 44**, you get your money at age 58. For Generation Y(ish), those from 23 to 35, the magic number is 59. For anyone younger, it will be at least 60.
Unfortunately these are the best-case scenarios. There is good reason to believe the reality will be far gloomier.
http://www.telegraph.co.uk/finance/personalfinance/special-reports/11537512/Cash-in-your-pension-at-55-You-may-have-to-wait-till-70.htmlFew people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0 -
However 2014 and even more 2016 life expectancy predictions show that 2037 is now premature and that those retiring at 68 will now actually have fewer years in retirement on average than those retiring now.
Not quite. The issue is that the rate of increase in life expectancy has slowed. So if SPA stayed the same, average years of receiving payment would still increase, just more slowly than before:
“Since 2010, the rate of increase in life expectancy has about halved,” says Michael Marmot, director of the Institute of Health Equity at University College London, who led the analysis."
https://www.newscientist.com/article/2140907-rising-life-expectancy-in-england-has-slowed-since-recession/0 -
Except that the change in 2028 is supposed to be to '10 years before state pension age' and that as this is moving to 68 in 2037, in 2028 this emans min pension age will move straight to 58 rather than 57 so depending on birthdate some people may see a 3 year jump if they were born 1 day too late:eek:tempus_fugit wrote: »Indeed, and in fact companies are already stating in their literature that the minimum pension age will be 57 from 6th April 2028. I have had letters already that include a statement to this effect.
The trend is for the rate to be decreasing so the next set of figures may show no increase. Basically it is only if we were still following the trend up to 2012 that the 2037 date fits in with the Crickland report definition of fair. Althougth the claim is that the increase fits with Crickland actually it is at least 5 years premature based on current best predictions.Not quite. The issue is that the rate of increase in life expectancy has slowed. So if SPA stayed the same, average years of receiving payment would still increase, just more slowly than before:
“Since 2010, the rate of increase in life expectancy has about halved,” says Michael Marmot, director of the Institute of Health Equity at University College London, who led the analysis."
https://www.newscientist.com/article/2140907-rising-life-expectancy-in-england-has-slowed-since-recession/I think....0 -
in 2028 this emans min pension age will move straight to 58 rather than 57 so depending on birthdate some people may see a 3 year jump if they were born 1 day too late
People had a five year jump if they were born on 6 April 1960. Those born on 5 April 1960 had a single day on which they could draw their pension at age 50 (5 April 2010) after which they had to wait another 5 years to 5 April 2015. No tapering there.
Some hedged their bets by taking the tax free cash at 50 and leaving the rest in income drawdown (contrary to what the media says, George Osborne didn't invent it in 2015).
It seems to have been largely ignored because anyone who has a big enough pension fund for it to matter has enough non-pension assets for it not to matter. More specifically, if you actually have enough money to retire at 55, you can ensure you build up enough non-pension savings to live on between 55 and 57/58. With the ever-increasing restrictions on building up pensions, you probably couldn't stick all your money in pensions and thereby trap yourself into working another couple of years even if you tried.
The other potential group affected, those without large amounts in pensions who are forced by infirmity to leave work at 55, have disability benefits to rely on.
The logic for it going up to 57 is the same logic for the minimum age to exist in the first place - the Government doesn't want people to draw their pensions too early and then not have enough to live on or last them the rest of their lives, resulting in them claiming means-tested benefits (while not contributing to the tax system via employment for as long as they could have). As life expectancy rises, the risk of someone giving up on work and drawing their pensions too early increases, so the minimum pension age must rise.0 -
And just to belabour the point, all increases to the State Pension Age have been inadequate in terms of what was needed to match increases in life expectancy. If the rate at which life expectancy continues to increase goes down slightly, it just makes the response slightly less inadequate.0
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The change from 1/3rd to 32% in retirement is the critical issue here. That's what has brought forward the retirement age when the actual fall in the last set of life expectancy figures blew away their plans against the test that was set.
They have ignored the other cridland elements around removing triple lock to double lock and some of the more helpful plans to help people adjust to later retirement.
Still we need to keep DUP on board with the £1bn, maintain the triple lock and universal winter fuel payments and kick the problem and pain onto a future generation.0 -
Only if you were still an active member after April 2014
Originally posted by chiefie ”
Your wife's original statement probably did say age 60. When the rules changed in 2014 there was an unbelievable amount of documents/information leaflets/statements/letters etc to change, and some were amended as and when they were picked up!Right enough, I've checked again and it does say that the "leaving date" can be 55 or over if you left employment on or after April 1, 2014. I myst have dreamt the bit about not getting the pension before age 60, either that or her employers were being a bit pernickity about it when she enquired about it. Posted by tempus fugit
P.S. - where you did get the 'unreduced if taken at age 62 ' from? Based on her service (1998 to 2016) and her age (under 60) she has, at best, minimal R85 protections.0 -
The trend is for the rate to be decreasing so the next set of figures may show no increase.
The rate is increasing just now, and has been over years past. Consequently the average number of years life expectance in retirement is still higher than it was in 2014, 2015, 2016.
If the rate stops increasing at the end of 2017, then the life expectancy figures for 2018 and 2019 will be the same as at the end of 2017, but will still be more than now.
Think of the rate of change like accelerating in a car, and the years of life expectancy like the speed you are doing.
If you accelerate hard, you may increase your speed from 0-60 in 20 seconds. You will be going faster at 10 seconds than you were at 5, and faster at 20 seconds than you were at 10.
If you accelerate slowly, it may take you 5 minutes to reach 60mph,, but you will still be going faster (ie more speed) at 10 seconds than at 5 and at 20 seconds than 10, just that the actual speed at each of these times is less in the second case than in the first.
Likewise if the rate of increase in life expectancy is less (=less acceleration), the actual number of years (=speed) still gets bigger, just not as quickly.0 -
I don't know if this is relevant to you but my reading of it - and I appreciate this is only a condoc blah blah - was that it was going to be ten years before the State pension age at that time, and not ten years before your own personal State pension age. So in 2027, you would need to look to see what the State pension age is in 2027, and if you were ten years below that age then you could access your private pot. Could get complicated if it decides to follow whatever transitional period might be going on at that point in time. Which is why I have not entirely given up hope that it will indeed kick in overnight on, say, 6 April 2028 and if you'd turned 55 on 5 April 2028 you'd be fine.Except that the change in 2028 is supposed to be to '10 years before state pension age' and that as this is moving to 68 in 2037, in 2028 this emans min pension age will move straight to 58 rather than 57 so depending on birthdate some people may see a 3 year jump if they were born 1 day too late.0 -
I'll ignore your usual rant at the public sector other than to note that those able to draw their occupational pensions earlier than 60 were usually in occupations which had special reasons for it such as in which it was undesirable to have an ageing workforce like firemen, midwives, police. These options will not apply to new staff as those schemes have changed.
The other area where 55 was popular were private schemes where they represented a perk.
The other point to make is that unless your pension scheme forbids it you can retire at 55 in many schemes
For DB schemes this is mostly with an actuarial reduction. This means that you do not get more pension or subsidise anyone. Your pension is reduced to reflect early payment
But the private pension age is also rising:
http://www.telegraph.co.uk/finance/personalfinance/special-reports/11537512/Cash-in-your-pension-at-55-You-may-have-to-wait-till-70.html
Im in a manual job have been all my life and spend most of my day repairing cars or dragging cars out of ditches and off the motorway etc yet and have to carry on regardless yet in the public sector most manual workers think they cant work past 55 doing their job. Plus as ive said we had a FS scheme ripped from under our feet as many did, The present pension sees a misly 5% paid in by employer matching my 5% unlike the public sector where 12% plus from the employer (tax payer)is the norm.0
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