Pension at 70? Throw a party.

coastline

Loughton_Monkey wrote: »

Anyone can claim a pension from age 55. It's only the State Handout that cannot be claimed until a certain age.

Have you totally ruled out the possibility that over the next 30/40 years, there may be such an increase in wealth for working people, coupled with a renewed propensity to save, that may cause people to retire in their early 60's on fat pensions - actuarily boosted for the temporary period without state pension?

Thats not the case...in many situations its down to the company involved...even local government workers where I live cant go until at least 60 yo.

example..

http://www.nhsbsa.nhs.uk/Pensions/2673.aspx

Whats to stop this 55 yo limit going even higher...its just gone from 50 to 55 yo...and thats including a private pension.
People who retire early would need a massive pension pot to leave...around £400,000 just to get £20,000 a year at 55 yo.
You'll be talking somewhere above £1m in the future with inflation....can't honestly see anyone on average salary juggling their lives to save a fortune....half the population earn less.

http://www.hl.co.uk/pensions/annuities/annuity-best-buy-rates

Final Salary pensions are just about closed to newcomers they'll be lifting the retirement age in line with the governments policy.
People will need flexible pension plans to get around all the chopping and changing in employment something which isnt in place....people are still setting up new arrangements with different employers.
Yes a small percentage of people will retire early if they manage to save...but not on the scale of recent years where final salary pensions gave them a boost.
I believe the government are hoping some people get to 70yo without retiring...but they haven't got the answer as theres too many situations to consider.

ruggedtoast

Loughton_Monkey wrote: »

Which probably explains why the most 'draconian' future projections have people working only up to their 60's.

Probably the government/Health Service statistics for the whole population may well have rather more credibility than the random observations [of people you don't know, or a handful you do] of an individual Generation X-er



Anyone can claim a pension from age 55. It's only the State Handout that cannot be claimed until a certain age.

Have you totally ruled out the possibility that over the next 30/40 years, there may be such an increase in wealth for working people, coupled with a renewed propensity to save, that may cause people to retire in their early 60's on fat pensions - actuarily boosted for the temporary period without state pension?



Indeed they are. Nice if you can get it!

Would these £1 million+ bankers be.... er.... boomers by any chance? One assumes that none of them could possibly be from your own hard-pressed, downtrodden, priced-out, poverty-ridden, exploited and destitute generation!

The government are not changing state pension provision cocomitantly with the age people may need or deserve a pension. They are changing it to save money. I think that is fairly abundantly clear to everyone (or I thought it was).

Gen X, Millennials and probably Gen I will be less well off when they retire than baby boomers based on every single economic prediction I have seen. So if you and your mates don't habitually have a secondary 'fat pension' lined up for the time before you can claim a state pension, then it is unlikely they will either.

I am genuinely intrigued as to what further multitude of occasions may arise that may occasion you to demonstrate your continued and complete refusal to accept this (rather commonly accepted) fact.

CLAPTON

ruggedtoast wrote: »

The government are not changing state pension provision cocomitantly with the age people may need or deserve a pension. They are changing it to save money. I think that is fairly abundantly clear to everyone (or I thought it was).

Gen X, Millennials and probably Gen I will be less well off when they retire than baby boomers based on every single economic prediction I have seen. So if you and your mates don't habitually have a secondary 'fat pension' lined up for the time before you can claim a state pension, then it is unlikely they will either.

I am genuinely intrigued as to what further multitude of occasions may arise that may occasion you to demonstrate your continued and complete refusal to accept this (rather commonly accepted) fact.

what do you mean 'save money'

in this context government only redistributes GDP (proxy : money) and neither destroys nor creates value.

So from whom are they taking away and to whom are they giving?

Loughton_Monkey

coastline wrote: »

Thats not the case...in many situations its down to the company involved...even local government workers where I live cant go until at least 60 yo.

example..

http://www.nhsbsa.nhs.uk/Pensions/2673.aspx

If you wish to take some or all of your pension before you are 60 it will be reduced because it will be paid for longer. Further details on this are included in the early retirement section

You can take a pension from age 55. It's the law.

Loughton_Monkey

ruggedtoast wrote: »

......

Gen X, Millennials and probably Gen I will be less well off when they retire than baby boomers based on every single economic prediction I have seen. So if you and your mates don't habitually have a secondary 'fat pension' lined up for the time before you can claim a state pension, then it is unlikely they will either.

I am genuinely intrigued as to what further multitude of occasions may arise that may occasion you to demonstrate your continued and complete refusal to accept this (rather commonly accepted) fact.

If you can quote economic 'predictions' well into your own retirement age, then I would be happy to review them.

It has always been the case that each generation is 'richer' than the preceding one.

To fly in the face of reality due to a recession [that happens at least twice every generation] is totally fallacious

In any case, if you take any generation, you can get 'Stinking rich', 'Rich', 'So-so', 'Slightly poor', and 'Quite poor'. Each of us within our own generation find our place, and a 'so-so' person in my generation is probably about as rich as a 'rich' person in the generation above me.

So it's 90% down to you. Only 10% down to the generation in which you happen to have been born.

Within the 90% that's down to you, then it's 100% down to you to decide (a) how much to spend while you are whinging and working, and (b) how much you invest to spend in your retirement.

ruggedtoast

Loughton_Monkey wrote: »

If you can quote economic 'predictions' well into your own retirement age, then I would be happy to review them.

It has always been the case that each generation is 'richer' than the preceding one.

To fly in the face of reality due to a recession [that happens at least twice every generation] is totally fallacious

In any case, if you take any generation, you can get 'Stinking rich', 'Rich', 'So-so', 'Slightly poor', and 'Quite poor'. Each of us within our own generation find our place, and a 'so-so' person in my generation is probably about as rich as a 'rich' person in the generation above me.

So it's 90% down to you. Only 10% down to the generation in which you happen to have been born.

Within the 90% that's down to you, then it's 100% down to you to decide (a) how much to spend while you are whinging and working, and (b) how much you invest to spend in your retirement.

Turkey

Loughton_Monkey

ruggedtoast wrote: »

Generation X Turkey looking forward to Christmas

____________

coastline

Loughton_Monkey wrote: »

You can take a pension from age 55. It's the law.

Private pension...your own money...I'll say 55yo...
Other arrangements through your employer are different...your scheme may allow you to take early retirement.
A family member of mine cant have his until 60 yo...thats local government so there must be millions of other cases .
Yes if benefits were transferred to another provider but this is complex and would leave people worse off.

http://www.hmrc.gov.uk/pensionschemes/take-pension.htm

http://www.pensionsandannuities.co.uk/Cash-in-a-final-salary-pension.htm

Loughton_Monkey

coastline wrote: »

Private pension...your own money...I'll say 55yo...
Other arrangements through your employer are different...your scheme may allow you to take early retirement.
A family member of mine cant have his until 60 yo...thats local government so there must be millions of other cases .
Yes if benefits were transferred to another provider but this is complex and would leave people worse off.

Yes. My main point is only about "retirement planning". If you 'plan' to retire on state pension only, then that's a rather poor position to be in, and one I wouldn't recommend......

But middle income (and above, or just below) should not let state pension age interfere with retirement age. It's purely a matter of planning your retirement assets so that you can live 'comfortably' at the date you choose to retire.

As someone getting full state pension next year at 65, I am "OK" I suppose, but were I to have been deferred to (say) age 67 it would simply mean covering a shortfall of roughly £15K less tax.

I suspect a lot of people - currently middle aged - will (should) retire with a mixture of FS Pension (if lucky), Money Purchase pension pot(s), State Pension, ISA Investment Assets, and other cash savings. It is a matter of tax planning and cash flow planning to smooth out the differences between FS pension 'normal retirement age' and state pension age...

As an aside, I would confirm that most FS pensions will 'allow' you to take a reduced amount earlier, but personally I would never recommend it. Transferring it to money purchase is also a "no-no" except under the most exceptional circumstances.

Whilst I have sympathy with those not getting state pension until 67 or later, it is no worse than what everyone with money purchase schemes have (are, and will) suffer(ed) in the form of derisory annuity rates.

MFW_ASAP

coastline wrote: »

Private pension...your own money...I'll say 55yo...
Other arrangements through your employer are different...your scheme may allow you to take early retirement.
A family member of mine cant have his until 60 yo...thats local government so there must be millions of other cases .
Yes if benefits were transferred to another provider but this is complex and would leave people worse off.

http://www.hmrc.gov.uk/pensionschemes/take-pension.htm

http://www.pensionsandannuities.co.uk/Cash-in-a-final-salary-pension.htm

Final salary pensions have more stringent rules about retirement dates, etc. but this is a small price to pay for such a generous, guaranteed income pension scheme.

With money purchase schemes, there is no guaranteed income, so you can take these from 55 onwards, though if you use them to buy an annuity at age 55 you will have a punitive rate (except if you have a reduced life expectancy).

I cannot get my state pension until 68, I can't get my final salary pension until age 65, I can take either of my 2 money purchase pensions from age 55 onwards. I am hoping to retire at 60, so I will structure the start dates of my money purchase pensions (and ISA savings) accordingly.