How much should you save for retirement?

dunstonh

I thought men got state pension after 65, women on a sliding scale.

Not any more. The state pension age is being increased to 68 in stages between 2024 and 2046. Pension credit qualification age is going up as well. Currently its 60 but it will increase to 65 and then increase to 68 in line with the state pension. So, those planning [STRIKE]to be poor in retirement[/STRIKE] to be captured in the pension credit rules are also in for a bit of a shock.

http://www.thepensionservice.gov.uk/state-pension/age-calculator.asp

It is likely that it wont stop there either. There are rumbles that following that, it will increase to age 70 after 2046. However, they are just rumours and suggestions to help reduce Govt debt.

http://www.agentcities.net/2009/07/06/could-pension-age-increase-to-70/

juicyjude

Oh yes I heard that about age 70!!!Its a joke really. So(if you bear with me) my husband is now 57 and if things stay as they are he will still qualify for state pension at 65, is that correct? Also I am 55 and have had a pension forcast to state that I will qualify for my state pension when I am 63 and I have been told that I have 30 qualifying years giving me 30/30 of the full amount of basic pension, so hopefully I should be able to receive it then. Is how I am reading this correct? Thanks for your help Dunstonh

jh2009

You are correct.

The state pension wont start increasing from 65 until 2024, so based on your ages of 55 and 57 and assuming nothing changes in the next few years, your state pension ages will remain at 63 and 65 as stated in your post.

From 2024 to 2046 it goes up in stages gradually from 65 to 68. I think anyone born after 5 April 1978 has a 68 state retirement age under current rules.

welshmoneylover

If they are planning for people to retire @ 70, what happens, say to someone, who develops dementia @ say 63 and obviously can't work cos they don't know what day of the week it is?

I'm not trying to sound funny but dementia is on the increase and losing one's marbles doesn't feature in my retirement plan.

However, there are loads of other age related illnesses that we can't predict and forecast for.

So, what's the plan folks? What other safety net will be there?

juicyjude

Makes you sick doesnt it, imagine working till youre 70. Yes some people can but it is just the government wanting to spend less and less money to help people when they get older. I think they are trying to ease state pension out altogether! By the way, well done on your weight loss, I used to do slimming world, its really good isnt it. Sorry off topic and thanks everyone for your help

dunstonh

but it is just the government wanting to spend less and less money to help people when they get older.

The state retirement age doesnt mean you have to work that long. You can choose to retire earlier and you can choose to fund your retirement.

The basic state pension is just £5000 a year. The second state pension is around £3500 currently (older people tend to get more, younger will get less due to retrospective reductions). Self employed dont get the second state pension.

So, even if you rely on the state pensions, you are not looking at a lot of money there.

I think they are trying to ease state pension out altogether!

The basic state pension is unlikely to go. The second state pension is the one that is felt to be unreliable. The benefits have got progressively lower, the rules get tweaked with periodically and as mentioned above, the self employed don't get it anyway. Only employed individuals who are not in a contracted out final salary pension (contracted out in a personal scheme get it replaced from the pension company).

Rollinghome

vaporate wrote: »

Although I am only 23 years old, I am very interested in the theoretical savings one should have by say 65+?

How much should one have in a savings account to have a good retirement. I know its very vague but what is average?

To be realistic, any forcast of your situation almost half a century on will be little more than a guess.

When I was your age the big concern was that with the advent of computers and robots there wouldn't be enough work and we would all have to retire at 40. You may have noticed that they got that wrong.

Just 10 years ago, in 1999, no one calculated in their forcasts that the the FTSE would actually be 35% lower in 10 years time than then. They got that wrong too.

So when you hear precise forcasts take them for what they are and don't forget to have fun while you're young.

Arthurian

I hope the civil servants in their carpeted offices who thought working until 70 was entirely reasonable spared just a thought for the chap wrestling a pneumatic drill onto the tarmac in the winter rain.

Trying_to_be_good

Arthurian wrote: »

I hope the civil servants in their carpeted offices who thought working until 70 was entirely reasonable spared just a thought for the chap wrestling a pneumatic drill onto the tarmac in the winter rain.

How about not blaming the civil servants (of which I am one), and instead the government who made policy?

Retiring at 60 (for women) and 65 (for men) was fine when people popped their clogs five years later. Now people live so much longer it's not affordable. And yes, I know my civil service gold-plated pension is unaffordable, too. But as my pay is reduced to take account of the benefit, I'm not for giving it up just yet. I am prepared for everything to be changing in the next few years, though.