The Tories have issued a report proposing the State Pension Age could rise to 75 by 2035. 
It’s not as if we didn’t see that one coming…
Darkside:
The Tories have issued a report proposing the State Pension Age could rise to 75 by 2035.It’s not as if we didn’t see that one coming…
Which is why it’s probably best to have an alternative to the state pension.
Most of us will be dead by the time we can get a pension, which is what they want I suppose.
Doesn’t surprise me coming from a Tory government.
I’m 32 and I’ve been convinced for years that by the time I get to retirement age, such a thing won’t exist anymore.
Once the compulsory workplace pension was introduced, it was obvious to me that this would one day be used to replace the standard pension scheme currently in place.
The workplace pension started in 2012, with all employees having to be enrolled by 2017 (excluding those who opt out).
Wait till this scheme has been in place for about 10 years, then don’t be surprised if the government (especially a Tory government) says ‘compulsory workplace pension has now been in place for 10 years, so anyone aged 55 or below (as an example age) should be able to save enough money for their retirement, those older than 55 will still be eligible for a state pension.’
If you can’t afford to retire, and aren’t going to be eligible for a state pension, you will have to keep working until you drop, which will already be the case for a lot of people if this raise in age goes through.
Time to start planning for the future and getting those savings in order!
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The trap will be set…
The other side as well. If you diligently save and reach retirement with a good pile of cash from your home, savings and pension. You will be penalised for any care home needs you may require from the state. You will be forced to sell your house if you own it and pay for your care if you have over a set amount of cash and pension.
As they say, you’re damned if you do and you’re damned if you don’t.
I think that these views are overly cynical. There will always be a good many people who are not enrolled in any pension scheme; those on zero-hours contracts for example and taxpayers will have to support them in their old age whatever happens.
If you look at this from the other side, why should hard-working taxpayers, who put a good percentage of their own incomes into a pension, continue to support those who choose not to make any provision for their own retirement?
If I was under 50, one of the questions I would be asking any prospective emploer would be about their pension scheme. This comes as part of an employment package when you are at management level, along with annual leave and sick pay. There is no reason why truck drivers should not shop around for the better deals - employers who want to recruit and keep the best employees must offer the whole deal; salary is only one part of that.
A few years ago, pension plans got a bad press - deservedly so. Now the industry has been cleaned up and anyone who turns down the 20% tax boost, as well as an employer’s contribution towards their eventual retirement, is a deluded fool.
yourhavingalarf:
The trap will be set…The other side as well. If you diligently save and reach retirement with a good pile of cash from your home, savings and pension. You will be penalised for any care home needs you may require from the state. You will be forced to sell your house if you own it and pay for your care if you have over a set amount of cash and pension.
As they say, you’re damned if you do and you’re damned if you don’t.
Perhaps you could explain why I, as a taxpayer, should pay for your care-home so that you can leave a good pile of cash from your home and savings to your children.
Because why should someone who has saved pay for care but someone who spends everything gets it paid for
Santa:
Perhaps you could explain why I, as a taxpayer, should pay for your care-home so that you can leave a good pile of cash from your home and savings to your children.
Because…
I’ve already paid for my care home over the last sixty years at 20% of what I earned. I’ve followed government advice and saved hard. I’ve paid a percentage of everything I saved to the tax man. Why should I pay it all again?
If I sit on my arse and live on state hand-outs for three generations like some families history, I’ll get it all for free.
Before they can vote to implement this every single one of them, including the doddery old ■■■■■, should be shackled in a chain gang for a month and made to dig holes and break rocks for 12 hours a day 7 days a week. NO excuses, no sick notes, if they die in chains then all well and good.
itll be a good thing. iv lost count of the folk iv known who retire and rapidly go downhill and die because theyve lost any purpose in life. others i know are not dead but desperately bored , ending up applying for job after job unsuccessfully.
one bloke rang me up wanted to work for me gratis just to give himself a daily purpose but i didnt dare in case he got frail after a week or 2 pushing a broom all day
corij:
itll be a good thing. iv lost count of the folk iv known who retire and rapidly go downhill and die because theyve lost any purpose in life. others i know are not dead but desperately bored , ending up applying for job after job unsuccessfully.one bloke rang me up wanted to work for me gratis just to give himself a daily purpose but i didnt dare in case he got frail after a week or 2 pushing a broom all day
Firstly I really feel sorry for the younger generation who have little or no hope of a financially secure retirement. Even contributing into a private pension for years at the end of the day pays out peanuts unless you are able to pay vast amounts every month which I doubt any ordinary lorry driver could afford.
Regarding actual retirement corij there are some people who absolutely love every minute (myself included) but normally that requires finances to compensate the lifesyle you want.
It also usually requires a few hobbies to keep busy instead of being (like some) being a couch potato watching TV most hours of the day. I have a couple of mates however who are financially secure but are bored senseless by retirement. Both had their own business and ran it from day to day and they miss that dreadfully.
I feel extremely lucky to have retired in my 50’s (although I worked hard many years) but there are no easy answers for younger people unless you come into money or win the lottery!
Sorry I can’t be more optimistic.
Anyone else find it ironic that the name of the “think-tank” that put forward the idea is “the Centre for Social Justice (CSJ)”?
If gov’t can one-sidedly change a contract (I pay you a % of my income each year - NI, then you pay me a certain sum after I reach a certain age) then I should be able to opt out of it, no?
So long as individuals have the chance to opt out of anything, no matter how sensible it is to remain in, some will do so.
I don’t want to trip over aging beggars in the street, and don’t want to support the foolish who opted out of pension schemes.
Pension contributions should be compulsory. No ifs. No buts.
And it should not be possible to transfer a compulsory pension into a sports car or ‘get rich quick scheme’. If you have savings above a minimum then fine, whatever you like. But all who work should have a minimum fund.
But also have to realise that there are also a lot of people working for a wage that often on here is said most on here would not get out of bed for. So how are they going to pay for normal living and save for a large minimum size pension.
Franglais:
Pension contributions should be compulsory. No ifs. No buts.
But it already is. The gov’t one that is. By the way, what is dear gov’t going to do with all that extra money? £175 Billion per year is a lotta money (even if the figure is wildly exaggerated)
It doesn’t make any sense to say that a commercial driver a brickie or scaffolder should be working into his seventies. Your Tories and Lords can nod off and it makes no real difference, what if we start doing that?
alamcculloch:
It doesn’t make any sense to say that a commercial driver a brickie or scaffolder should be working into his seventies. Your Tories and Lords can nod off and it makes no real difference, what if we start doing that?
If they slept more, and did less, we might not be in so much mire !
ETS:
Franglais:
Pension contributions should be compulsory. No ifs. No buts.But it already is. The gov’t one that is. By the way, what is dear gov’t going to do with all that extra money? £175 Billion per year is a lotta money (even if the figure is wildly exaggerated)
Yes we do, but not enough. We should all up our contributions.
.
Why give people the option to make stupid choices by not saving enough?
… (I can guess what’s coming)…
.
When I’m retired, and draw my pension, I don’t want to have to swerve around in my new car to avoid those feckless beggers on the street!
The problem has been in the making for a long time.
It’s only recently that paying into a pension has been mandatory (2012) AND even more recently employers having to contribute.
I actually see this not being a bad thing and not even a permanent thing.
For example if you are 48 right now and started working when you was 18 you could of easily gone almost 30 years without paying in a single penny towards your pension.
Many many many people have just preferred not to pay into a pension pot because they would rather have the extra money each week.
Something has to give.
Now once people start paying into the pension pot from the age of 18+ this will be a less of an issue so it may well go down again.
I should also add if you was smart in your youth this is not an issue. As you will have your own pension to draw from and ideally some savings.
yourhavingalarf:
Santa:
Perhaps you could explain why I, as a taxpayer, should pay for your care-home so that you can leave a good pile of cash from your home and savings to your children.Because…
I’ve already paid for my care home over the last sixty years at 20% of what I earned. I’ve followed government advice and saved hard. I’ve paid a percentage of everything I saved to the tax man. Why should I pay it all again?
If I sit on my arse and live on state hand-outs for three generations like some families history, I’ll get it all for free.
What you will get for free is the bare minimum you need to live on. No one I met on my cruise last year was living on a state pension. You did not “pay a percentage of everything you save to the tax man” you paid a percentage of your wages. If you paid some of your wages into a pension, then you would have paid less tax. If, like me, you went without at times to ensure a long a financially secure retirement, you would, like me’ be paying tax on that. I do not begrudge the government’s share - after all, you don’t pay if you don’t earn.
under this government, the percentage of tax I pay has reduced as the personal allowance has gone up; I can also keep £3,00 interest on my savings tax free.