State pension age increase to 68 brought forward 7 years to 2037

Sun-Is-Fun

Really disgusted with this news, as it will affect me and millions of others. Was doing everything I can to retire early, and now it's another kick in the teeth.

paulharding150

mjfp509 wrote: »

Really disgusted with this news, as it will affect me and millions of others. Was doing everything I can to retire early, and now it's another kick in the teeth.

Surely if you were planning on retiring early you wouldn't be relaying on your state pension but on cash, investments and your private/workplace pension?

Whilst your state pension will start a year later - will that drastically alter your actual retirement date?

zagfles

michaels wrote: »

Funnily enough the WASPI campaign does feed in. In theory there is no need to decide about the increase until 2024 as this gives at least 10 years for people to adjust (based on the earliest likely rise being in 2034) which means in theory we could wait to see for the longevity data is saying. However the WASPI campaign has added political pressure to giving people as much warning as possible at the expense it seems to taking a wrong decision. (Plus of course the cynic would say that now 20 years before anyone is impacted the political fallout is zero whereas wait to 10 years before and it actually seems relevant to those impacted and thus carries a political cost)

WASPI are complaining about the 1995 act!

JoeCrystal

Well, this news is expected. I am going have to assume that there won't be any state pension by the time. Or rather save/invest even more to supply my own income until the pension kick in. I got 37 long years until my SPA or 29 long years until my dream retirement age of 60.

molerat

mjfp509 wrote: »

Really disgusted with this news, as it will affect me and millions of others. Was doing everything I can to retire early, and now it's another kick in the teeth.

If a one off shortfall of £8K, with 20 years notice, is enough to derail your retirement plans then your plans are nowhere near robust enough.

JezR

greenglide wrote: »

The CPI is currently 2.6% having fallen, unexpectedly from 2.9% last month.

So, currently, the triple lock is academic.

It is only relevant if we see low inflation levels again - I personally find that unlikely.

It is an odd quirk that the triple lock for all the years it has been in operation has delivered a total increase in basic/new SP almost exactly equal to what would have been delivered under the old RPI increase regime.

A double lock of average earnings increase and CPI only would have been 1 percentage point lower.

A single lock to CPI or average earnings increase (the later currently being the minimum in legislation) would have been about 7 percentage points lower.

This is no doubt an unexpected outcome, as if you took the same period historically, incomes would outstrip either inflation measure.

GibbsRule_No3

molerat wrote: »

If a one off shortfall of £8K, with 20 years notice, is enough to derail your retirement plans then your plans are nowhere near robust enough.

£8000, or whatever the State pension would be for me today, is what would pay my rent for the year. So I can see why it makes a difference. Yes, I could go now and use my savings but I'd like to keep those for things like "fun" and "emergencies".

beaker141

paulharding150 wrote: »

Surely if you were planning on retiring early you wouldn't be relaying on your state pension but on cash, investments and your private/workplace pension?

Whilst your state pension will start a year later - will that drastically alter your actual retirement date?

Its not just the state pension though - its the 10 year tie that allows you to take your personal pension which was 57 and is now 58 - so a year you have to fund out of post tax savings.

JoeCrystal

Hang on a minute, I didn't see any plan to link the age you can access your pension scheme to the state pension age. There are some talks but no actual legislation. It is still 55.

zagfles

JoeCrystal wrote: »

Hang on a minute, I didn't see any plan to link the age you can access your pension scheme to the state pension age. There are some talks but no actual legislation. It is still 55.

It was mentioned in a recent budget, though unlikely to have been legislated for yet. IIRC they were talking about changing it to 57 in 2028 or so.