State Pension Age review due before 7th May 2017

zagfles

SnowMan wrote: »

https://www.gov.uk/government/publications/2010-to-2015-government-policy-state-pension-age/2010-to-2015-government-policy-state-pension-age

They haven't announced yet who will do the report on the wider factors. But that is the bit which presumably will cover different life expectancies in different geographical areas (although the GAD report may provide figures for proportion of time spent in retirement by area)

I don't think they could in a workable practical way allocate individual SPAs based on where geographically you live; how do you split up areas geographically and what about people who have moved about geographically?

The only practical thing they could do (that I can think of) is to allow people to take their state pension early (say from age 65 once SPA has increased above this) subject to a reduction, but that also has a number of knock on affects for example in terms of its interaction with the benefits system.

Plus of course gender makes a bigger difference than geography or occupation. If people are really going to get retirement ages tailored to their life expectancy, are men going to get an earlier age than women?

chris_m

zagfles wrote: »

Plus of course gender makes a bigger difference than geography or occupation. If people are really going to get retirement ages tailored to their life expectancy, are men going to get an earlier age than women?

Now that would really set the cat amongst the pigeons

zagfles

chris_m wrote: »

Now that would really set the cat amongst the pigeons

Yes, but it won't happen of course - they'll use the sex discrimination laws like when they equalised annuity rates. But as Snowman says it would be hard to do on geography, but would they account for other stuff like being a smoker (which of course are considered for annuities)?

brewerdave

zagfles wrote: »

Yes, but it won't happen of course - they'll use the sex discrimination laws like when they equalised annuity rates. But as Snowman says it would be hard to do on geography, but would they account for other stuff like being a smoker (which of course are considered for annuities)?

.....so wine,women and ciggies -get your SP earlier !! Sounds good to me:rotfl:

Paul_Herring

SnowMan wrote: »

https://www.gov.uk/government/publications/future-state-pension-age-rises-dwp-background-note

When adult life is considered to begin

The government has decided to use the age of 20 as the appropriate starting age for the purpose of calculating the proportion of adult life spent in receipt of State Pension. This is based on OECD convention and is commonly used as a comparator for matters relating to pensions.

Is it cynical of me to expect this age to also rise to compensate for the increase in the number of years 33.3% represents if life expectancy continues to increase?

GazHol wrote: »

I don't see any mention of the minimum retirement age, I guess we can assume that it will also rise in tandem to remain state pension age minus 10 years?

I thought that didn't actually get legislated for yet but remained a rumour/intention?

http://www.thisismoney.co.uk/money/pensions/article-2967477/Pension-age-increase-axed.html ( 25 February 2015 - after the link Snowman gave.)

Plans to increase the minimum age at which you can take your personal pension from 55 to 57 appear to have been dropped.

At present, savers can take their pension when they reach 55. Last year the Government announced plans to increase the minimum age in line with rises in the state pension.

So when the state pension age becomes 67 in 2028, the age at which you could take your private or company pension was going to rise to 57.

I'm currently saving in a non-pension wrapper to last me between 53 (when I plan to finish work) and when I can get my hands on my private pension - fingers crossed that it only needs to fund 2 years...

They've already pulled the rug from under me once by moving that age up from 50, which is where it was when I started my pension.

bigadaj

Just had a pension statement from Scottish widows and as part of the summary there is a statement that the age at which I can access it is likely to increase from 55 to 57 in line with the rise in state pension age.

grey_gym_sock

cns06 wrote: »

Its easy to just say - problem solved - but the reality is I was sold a policy which I could draw after 35 years service.

Its unfair to change the policy now. I am 18 years into my pension contributions. As far as I am concerned a contract is a contract - but hey its only money.

i assumed you were talking about DC pensions, but from the above wording, i wonder if you mean DB? changes to DB pensions are another, thorny topic.

if you mean DC pensions, then basically the same investments are available in S&S ISA as in DC pensions. so long as enough notice is given, i don't see there's any great hardship in finding out that you'll need to put more in ISAs, less in pensions. it's not as if plans for generating retirement income from investments can be set in stone - we always have to deal with huge uncertainties in what investment returns will be over the period we happen to be investing in.

the point about enough notice is the key. the rise from 50 to 55 happened with rather little notice for ppl who were close to 50 at the time.

For all we know it might end up being 60 or 65 before we can take the pension so we are having to cover our bases.

yes, that is a real concern. the possibility of that kind of change is 1 reason why i have put more in ISAs than in pensions - but still some in both.

atush

brewerdave wrote: »

.....so wine,women and ciggies -get your SP earlier !! Sounds good to me:rotfl:

They cant lower the SPA for anything self inflicted. AS it would not be fair to those who take their health seriously. Those above already take up more of NHS services.

And as far as I am concerned, this covers the geographical differences. Which as far as I have read, are not genetic, but lifestyle based such as smoking, drinking, and not eating a healthy diet.

atush

We have also just had to make a further investment in a property, to cover the gap. For all we know it might end up being 60 or 65 before we can take the pension so we are having to cover our bases.

So we are now "evil" landlords too - a load of hassle frankly we did not want.

Sorry but no dice. No one forceed you to buy a BTL. You chose to. You could have used DC pensions, S&S iass (full allowances x2) and unwrapped investments instead- had you wanted to.

And given the changes coming in BTL, where you lose the tax breaks for cost and mtg, what are you going to do then?

SnowMan

SnowMan wrote: »

They haven't announced yet who will do the report on the wider factors. But that is the bit which presumably will cover different life expectancies in different geographical areas (although the GAD report may provide figures for proportion of time spent in retirement by area)

They have announced it now.

John Cridland has been appointed as the independent reviewer of State Pension Age

https://www.gov.uk/government/news/john-cridland-cbe-appointed-to-lead-the-uks-first-state-pension-age-review