What age to plan living to
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I think it might be a self-fulfilling prediction.
As you near the final countdown you would start getting careless about crossing the road, decide that having a few more drinks or starting smoking wouldn't matter any more.
So you'd probably hasten your death by about 5 years just by thinking about it.0 -
JoeEngland wrote: »Annuity rates are terrible. Unless you have very big pension pots, are into your 60s, or have such bad health that they expect you to die early, I would avoid them.
I plan to take 2 annuities next year from smallish pots (total ~£30k) but they do have GARs of 10.6
I am not planning to die at any date, Besides the annuites which will not be indexed I have other income sources with no time limit. I have a couple of DB pensions which should pay about £14k pa, mostly indexed up to 5%. I also get about £25k pa from property, which is providing my current income. I need one more years contributions to get the maximum state pension though that is a few years off yet.0 -
grey_gym_sock wrote: »... care homes, is there no insurance available to cover this (for younger retirees, who don't yet need a care home)?
I understand that firms have offered it but can't make a living from it. My guess is that their problem is that many of our fellow citizens have decided not to buy insurance and instead plan to freeload on the taxpayer. "Socialism", as you call it.Free the dunston one next time too.0 -
I understand that firms have offered it but can't make a living from it. My guess is that their problem is that many of our fellow citizens have decided not to buy insurance and instead plan to freeload on the taxpayer. "Socialism", as you call it.
it would be a lot fairer (and IMHO, more socialist, but that's a not the main point), if we had a national care service which was both high enough quality that everybody (who wasn't eccentric) would be happy to use it, and had no means testing or charging at the point of use. sensible people would be happier to pay in to support the system if they knew that they would also get something out if and when they need it.
this idea is directly modelled on how the NHS is supposed to work - and, to a large extent, does. (even people with private health insurance usually use the NHS for some purposes - e.g. they might use an NHS GP, but go private to jump a waiting list for an operation.)
i have to admit that some people are not sensible about who should pay for care. we see some posters on MSE who simultaneously think that they (or their parents) should be fully entitled to have the State pay for their care (even when they can afford to pay for it themselves) but that other people should have no such right (even when they can't afford to pay for it). some people feel a lot of hatred; benefit claimants are one group towards whom this hatred has been channelled for (at least) decades. it will take more than a fairer way of paying for care to end the politics of hate.0 -
JoeEngland wrote: »Annuity rates are terrible. Unless you have very big pension pots, are into your 60s, or have such bad health that they expect you to die early, I would avoid them. If the govt hadn't changed the rules so we don't need to take annuities then I'd be condemned to trying to work far longer than I want to even if I physically could.
did you actually read my post?
how do you propose to avoid working longer than necessary and avoid the risk of becoming poor if you live longer than expected without buying an annuity at any age?0 -
Safe drawdown rates can achieve it with minimal risk, dropping to about the same as guaranteed income if you adjust based on how things go.grey_gym_sock wrote: »how do you propose to avoid working longer than necessary and avoid the risk of becoming poor if you live longer than expected without buying an annuity at any age?
About the same because of risks like legal judgements or care needs, where a drawdown pot may provide better than spending all capital on guaranteed income that's too low to cover the bills.
But it's not particularly efficient to do drawdown alone. That's why I'll normally suggest state pension deferral and later, some annuity buying when life expectancy causes those rates to be good. One useful thing to consider is that more guaranteed income can enable drawdown with lower success rates by removing the worst case outcomes or making them far less likely. 25% success rate when guaranteed income covers your needs can be fine...
Life expectancy permitting I expect to do both state pension deferring and annuity buying myself. Annuities are still a useful tool. Not particularly competitive at younger ages in good health but those change.0 -
grey_gym_sock wrote: »did you actually read my post?
how do you propose to avoid working longer than necessary and avoid the risk of becoming poor if you live longer than expected without buying an annuity at any age?
It might be worth considering in the future depending on circumstances (ie. when I'm into my 60s and if it made sense to go for a guaranteed income) but I wouldn't consider one now. I want the flexibility of drawdown. So rather than love annuities I see them as pointless in my circumstance for now. Anyway, in the future there would also be other options such as equity release to consider.0 -
grey_gym_sock wrote: »it would be a lot fairer (and IMHO, more socialist, but that's a not the main point), if we had a national care service which was both high enough quality that everybody (who wasn't eccentric) would be happy to use it, and had no means testing or charging at the point of use. sensible people would be happier to pay in to support the system if they knew that they would also get something out if and when they need it.
this idea is directly modelled on how the NHS is supposed to work - and, to a large extent, does. (even people with private health insurance usually use the NHS for some purposes - e.g. they might use an NHS GP, but go private to jump a waiting list for an operation.)
i have to admit that some people are not sensible about who should pay for care. we see some posters on MSE who simultaneously think that they (or their parents) should be fully entitled to have the State pay for their care (even when they can afford to pay for it themselves) but that other people should have no such right (even when they can't afford to pay for it). some people feel a lot of hatred; benefit claimants are one group towards whom this hatred has been channelled for (at least) decades. it will take more than a fairer way of paying for care to end the politics of hate.
I disagree, I think the state should cover minimum acceptable and then let people who have saved more pay for extra on top rather than having to opt out entirely and pay for everything. I think this model woudl also work for the NHS - want more convenient appointments with a shorter wait - no need to go 100% private just pay an additional services charge to the NHS - NHS wins by getting more income and an insurance industry grows up so support people effectively pool-saving to pay for NHS plus services.I think....0 -
Have you actually seen what is considered acceptable?I think the state should cover minimum acceptable
We went to about 20 care homes last year.
A significant minority were dreadful and I'm not talking about being fussy here. I mean dressings hanging off, stench of urine, filthy toilets.
My SIL said "over my dead-body" and really meant it.
This is where people who have no advocates or poor ones end up.
We had the experience last year when the LA wanted to split up MIL & FIL after 60 years of marriage. One was bed bound, the other would require lifting into a car or wheelchair taxi, so would not have seen each other very much if in different homes.
In principle I love your idea, but many (not just me) would say the minimum currently provided is not acceptable.0
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