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Revised retirement age
Comments
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Contrary to comments, I was not unaware that this was going to happen
If you were aware of the changes in womens state pension age, why did you say this?
How much notice do you need?
But, the government did not give sufficient notice of the change to allow women to make other financial arrangements.
Isn't 15+ years enough?
I do agree about the more recent change to womens state pension age though - the Govt didn't give sufficient notice.Caroline_a wrote: »I disagree. There must be a huge amount of people who do not even know about this site, let alone this board!! Plus, 20 years ago pensions to people of that age were not even discussed, let alone read up about. I remember paying into my first pension which was longer than 20 years ago, and we had no meetings with advisers, options for this or that, we were just told 'this amount of money in your salary goes towards your pension', and that was that.
When the changes were introduced, this website and the internet as we know it did not even exist.
I was aware of the legislation changes (and I'm a similar age to the OP).
Maybe the people who managed your pension fund were poor communicators.0 -
Private pensions for everyone generally have taken a hit.
Depends on what you mean by private pensions and what timescale you are looking over.I never said that. I had children at that point (age 41 and not 31 as realised when the maths were corrected) and was working part time, so it was impossible to put more cash into a pension. By the time I was working full time, to make a difference, I would have had to put virtually every penny into a private pension.
You could still have contributed towards your retirement. i.e. spouse/partner paying instead or using ISAs or other things. Also, since 2001, you didnt need to be working to pay into a pension.If anyone is youngish and in work, that's great - and I know a lot of young people who are working. The question is, what will the retirement age be for them?
As things stand, the state pension age is upto age 68 depending on date of birth. The expectation is that the 67 increase and the 68 increase will be brought forward as well. There may well be longer term increases upto 70 but there is nothing on the cards at this time indicating that. One suggestion has been to link the state pension age to life expectancy.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
One last point - not all of the young on benefits now are there through "no fault of their own".
while we're at it, some pensioners are only on low incomes now because they failed to save when they could.
many ppl with high incomes have never worked very hard, and are just lucky.
etc.
let's blame everybody a bit
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As things stand, the state pension age is upto age 68 depending on date of birth. The expectation is that the 67 increase and the 68 increase (also set in 1995) will be brought forward as well. .
That was set in 2007, surely (Pension Act 2007). I know there's currently a plan, not yet approved, to bring forward the 67 date. Hopefully from my point of view that will be the last time the 67 date is brought forward, since it will make me one of the last to reach STA on my 66th birthday.0 -
Something which hasn't been mentioned is a pension improvement for women born since 1950 - they "only" need 30 contribution years to get their full state pension, whereas those who got the 60 retirement needed 39 contribution years.
See the bottom of this page0 -
One suggestion has been to link the state pension age to life expectancy.
Why is it only a suggestion? It must have been known for hundreds of years that people were gradually living longer.
It was certainly obvious when the welfare state was founded.
Why has it taken the pensions industry so long to realise that building a pension system around a fixed retirement age but an increasing lifespan spells disaster?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Why is it only a suggestion?
I'd say it is a bit more than a suggestion, given the Budget 2012 text:Budget 2012 announces that the Government will commit to ensuring the State Pension age is increased in future to take into account increases in longevity and will publish proposals at the time of the Office for Budget Responsibility’s (OBR) 2012 Fiscal sustainability report.
Although I can't recall anything at the time of the Fiscal sustainability report....It must have been known for hundreds of years that people were gradually living longer.
Life expectancy at birth has been increasing, but a lot of that was to do with lower child mortality.
Life expectancy at age 65 only increased quite slowly until about 1980, after which increases accelerated significantly (especially after 1990). Page 3 (by page numbering) of this report has some graphics which show this.Why has it taken the pensions industry so long to realise that building a pension system around a fixed retirement age but an increasing lifespan spells disaster?
The pension industry has responded - from the mid 1990s we have seen the closure of defined benefit schemes, or the introduction of Longevity Adjustment Factors (LAFs, or LEAFs) such as the British Aerospace scheme uses. Admittedly this was also linked to increased awareness about investment returns, volatility, and how big the pension schemes were getting relative to the size of the sponsor.
Govt. responded much more slowly - the 1995 increase to female state pension age was about equality rather than responding to longevity change.
The increases in 2007 were laughably slow - taking until something like 2048 to reach age 68 .
But given the political fallout from any proposals to increase State Pension age, it isn't difficult to see why most Govts would prefer to ignore it.
The linking of public service pensions to State Pension age also adds a new dimension - if there isn't an automatic longevity link, you will have the additional difficulty of vehement public sector union opposition to any proposed future increases, on top of the usual opposition to a higher state pension age.0 -
novice-saver wrote: »Something which hasn't been mentioned is a pension improvement for women born since 1950 - they "only" need 30 contribution years to get their full state pension, whereas those who got the 60 retirement needed 39 contribution years.
See the bottom of this page
And I will have 49.5 complete years if I work till I get SRP so don't think I will get too excited about that one.Sell £1500
2831.00/£15000 -
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