Gov launching pension age review

Juno_Moneta

https://news.sky.com/story/government-to-conduct-early-review-into-state-pension-age-13399571

Here we go… as long as they don’t touch the upcoming in 2028 change to age 57 for SIPP access rule I don’t care what they do with the state pension age… but appreciate others might. 

“Government revives landmark Pensions Commission”

“Alongside the Commission, the Government has, as required by law, also launched the State Pension Age Review, commissioning two independent reports for Government to consider when deciding the State Pension age for future decades.”

https://www.gov.uk/government/news/government-revives-landmark-pensions-commission-to-confront-retirement-crisis-that-risks-tomorrows-pensioners-being-poorer-than-todays

MattMattMattUK

I expect the review will give two options, increase contributions or increase pension age, the government will choose the latter and it will get phased up to 69 over the next decade or two. If the pension age increases then so will SIPP access, but I doubt anything will be implemented by 2028.

NickPoole

Not a fan of this at all. Won't affect me as getting state pension - I hope the new 16/17 voting cohort look for a party which won't do this.

BlackKnightMonty

Personally I don’t think I will ever see a state pension. So I am planning for that outcome. Does make me quite bitter though. Over 30 years of National Insurance Contributions…

Triumph13

Something has gone wrong with the maths in that release.  It warns future retirees will get 8% or £800 pa less than current ones - which implies that the current average is £10k pa.  But it also says that women get £100 a week now vs £200 a week for men.

So it looks like they have ignored women entirely and just worked out the likely decrease for men.  Cue chorus of 'No surprise there.'

Lowtrawler

BlackKnightMonty said:

Personally I don’t think I will ever see a state pension. So I am planning for that outcome. Does make me quite bitter though. Over 30 years of National Insurance Contributions…

If you have over 30 years NIC's, you will be within 20 years of state pension age. I think it unlikely you will not receive any state pension given that timeline. Many things could happen that will reduce the value of the state pension you receive.

Fully replacing the state pension with an equivalent private pension would require individuals to save an additional £0.25m through to retirement. That may not be unreasonable for those planning with 40 years to go but it would be completely unreasonable for those closer to retirement. The government would also face an issue encouraging people to make personal provision for retirement if, by doing so, the £0.25m state pension was taken from them. This is what makes it unlikely any government will completely remove the state pension.

BlackKnightMonty

Lowtrawler said:

BlackKnightMonty said:

Personally I don’t think I will ever see a state pension. So I am planning for that outcome. Does make me quite bitter though. Over 30 years of National Insurance Contributions…

If you have over 30 years NIC's, you will be within 20 years of state pension age. I think it unlikely you will not receive any state pension given that timeline. Many things could happen that will reduce the value of the state pension you receive.

Fully replacing the state pension with an equivalent private pension would require individuals to save an additional £0.25m through to retirement. That may not be unreasonable for those planning with 40 years to go but it would be completely unreasonable for those closer to retirement. The government would also face an issue encouraging people to make personal provision for retirement if, by doing so, the £0.25m state pension was taken from them. This is what makes it unlikely any government will completely remove the state pension.

I think it will become means tested.

Brenster

I am 45, and think it will be at least 70 before my age can access state pension.

Its definately a political grenade, especially with all the government F-ups which we all have to foot the bill for, and the ever increasing population increase. 

You would think with higher population, this would lead to higher tax income, and therefore help to pay for the state pension, unless of course the population increase isnt contributing to the system.

HappyHarry

BlackKnightMonty said:

Lowtrawler said:

BlackKnightMonty said:

Personally I don’t think I will ever see a state pension. So I am planning for that outcome. Does make me quite bitter though. Over 30 years of National Insurance Contributions…

If you have over 30 years NIC's, you will be within 20 years of state pension age. I think it unlikely you will not receive any state pension given that timeline. Many things could happen that will reduce the value of the state pension you receive.

Fully replacing the state pension with an equivalent private pension would require individuals to save an additional £0.25m through to retirement. That may not be unreasonable for those planning with 40 years to go but it would be completely unreasonable for those closer to retirement. The government would also face an issue encouraging people to make personal provision for retirement if, by doing so, the £0.25m state pension was taken from them. This is what makes it unlikely any government will completely remove the state pension.

I think it will become means tested.

It already is.

Non-taxpayers get all their state pension, basic rate tax payers get 80% of theirs and so on.

Albermarle

Probably the Govt would prefer to modify the Triple Lock to reduce its cost, rather than increase the state pension age.
However the latter is probably least politically damaging of the two, although anything that affects the State Pension is always very politically toxic, so they might shy away from doing anything in the end. 

BlackKnightMonty

HappyHarry said:

BlackKnightMonty said:

Lowtrawler said:

BlackKnightMonty said:

Personally I don’t think I will ever see a state pension. So I am planning for that outcome. Does make me quite bitter though. Over 30 years of National Insurance Contributions…

If you have over 30 years NIC's, you will be within 20 years of state pension age. I think it unlikely you will not receive any state pension given that timeline. Many things could happen that will reduce the value of the state pension you receive.

Fully replacing the state pension with an equivalent private pension would require individuals to save an additional £0.25m through to retirement. That may not be unreasonable for those planning with 40 years to go but it would be completely unreasonable for those closer to retirement. The government would also face an issue encouraging people to make personal provision for retirement if, by doing so, the £0.25m state pension was taken from them. This is what makes it unlikely any government will completely remove the state pension.

I think it will become means tested.

It already is.

Non-taxpayers get all the state pension, basic rate tax payers get 80% of it and so on.

Not really. The state pension and personal allowance are roughly equal. So it’s pretty much tax free.