Not knowing about Increased Retirement Age

seven-day-weekend

I have been in the unfortunate position of having to inform two ladies (separately) who are one aged 46, one aged 53, that they will not be getting their State Pensions at 60 as they had assumed. (This was just something that came up in ordinary conversation).

They were both gobsmacked and shocked because they didn't know.

The younger lady who no longer works and is living on capital said 'well that's me in the sh*t then, I've budgeted that I can manage until 60 because I have an insurance policy paying out. Don't know what I am going to do now'. She isn't going to get her State Pension until she's 68, is she? (I didn't tell her that in case I was wrong). She lives near me in Spain.

The other lady was more philosophical about it and accepted she would have to wait a few more years. She is in the UK and still working and paying NI Contributions.

What puzzles is WHY didn't they know? It's been publicised enough. And I would have expected the lady in Spain to have got a Pension Forecast before she committed herself to living on capital, especially as she is only 46..

I just felt as the I was the prophet of doom in both cases. (Especially as I, having been born in January 1950, am one of the last who can still get it at 60).

Oh well, nothing anyone can do, just wanted to get it off my chest!

EdInvestor

State pension age - the facts

No real excuse for not knowing about the move to age 65 - that's been coming in for donkey's years.But the move to 68 is only very recent.

Missing both does look like extreme carelessness.

Perhaps it's because many people (wrongly) regard the state pension as virtually worhless.

cheerfulcat

seven-day-weekend wrote:

What puzzles is WHY didn't they know? It's been publicised enough.

Because like large swathes of the population they take absolutely no interest in their finances beyond what it takes to buy what they want right now?

To be fair, I'm guessing that the lady in Spain has lost touch with UK news but you'd think the other lady might have spied a headline or two, or that a colleague might have mentioned the changes.

seven-day-weekend

EdInvestor wrote:

State pension age - the facts

No real excuse for not knowing about the move to age 65 - that's been coming in for donkey's years.But the move to 68 is only very recent.

Missing both does look like extreme carelessness.

Perhaps it's because many people (wrongly) regard the state pension as virtually worhless.

In both these cases, they were relying on it as a major source of income in retirement. The lady in Spain was very upset.

I'm keeping my mouth shut in future as it is a case of 'shooting the messenger'!

seven-day-weekend

cheerfulcat wrote:

Because like large swathes of the population they take absolutely no interest in their finances beyond what it takes to buy what they want right now?

To be fair, I'm guessing that the lady in Spain has lost touch with UK news but you'd think the other lady might have spied a headline or two, or that a colleague might have mentioned the changes.

The lady in Spain has only lived here a year!

I'm also amazed at how many expats here do not bother to pay voluntary contributions.

I have heard someone say, 'oh well, I'll get two-thirds of my pension, that will do'.

Maybe it WILL 'do', but for the sake of a few pounds a week, why not have a bit more? It's only one night less at the bar, or tighten up on your shopping a bit.

TBH, I know people must do it their own way, but for myself and my husband, we would not have come to Spain full-time, much as we wanted to, without a) having made provision for our State pensions and b) having a guaranteed source of income (his Teacher's Pension) and c) without being able to still have a place in the UK.

I've seen quite a few people go back because they have run out of money.

dunstonh

seven-day-weekend wrote:

In both these cases, they were relying on it as a major source of income in retirement. The lady in Spain was very upset.

I'm keeping my mouth shut in future as it is a case of 'shooting the messenger'!

And that is why we constantly tell people not to rely on the state pension (take note Ed).

seven-day-weekend

dunstonh wrote:

And that is why we constantly tell people not to rely on the state pension (take note Ed).

It will be my major source of income in retirement; although I have a Local Authority pension which I can draw from 60 at the earliest, I only paid into it for ten years, so it's only just over £2k pa on todays rates. If I do take it at 60 I will lose 1/4 of the pension and a 1/3 of the £5k lump sum. So I'll leave it till I'm 65.

Also, you can live reasonably on the British State Pension in Spain (at the moment).

EdInvestor

In both these cases, they were relying on it as a major source of income in retirement.

If so, you'd think they might have at least checked up that they were due to get it.

And that is why we constantly tell people not to rely on the state pension

You certainly shouldn't rely on it if you don't even know how much you're entitled to get and when - and don't keep your contribution record up to date.

Actually many women will find their retirment higely improved because of the new 30 year rule. The numbers getting the full basic will go up from 30% to 70%. So perhaps some of those people who haven't been paying in will be lucky. Much better to know the rules though IMHO.

Bossyboots

seven-day-weekend wrote:

I have been in the unfortunate position of having to inform two ladies (separately) who are one aged 46, one aged 53, that they will not be getting their State Pensions at 60 as they had assumed. (This was just something that came up in ordinary conversation).

They were both gobsmacked and shocked because they didn't know.

The younger lady who no longer works and is living on capital said 'well that's me in the sh*t then, I've budgeted that I can manage until 60 because I have an insurance policy paying out. Don't know what I am going to do now'. She isn't going to get her State Pension until she's 68, is she? (I didn't tell her that in case I was wrong). She lives near me in Spain.

Looking at the link, the one who is 53 will get their pension at 63 and a bit and the one who is 46, when they are 65.

seven-day-weekend

Yes, we'd worked out the older lady would get hers at 63.

I'm glad I didn't tell the other one 68! It was bad enough her finding out she couldn't get it at 60. You'd have thought it was MY fault!