UK: Retirement age to rise by as much as six months per year

[webfact]

Retirement age to rise by as much as six months per year

The pensions minister, Steve Webb, says Britons must accept dramatically longer working lives to avoid a health care funding crisis
By Peter Dominiczak, Steven Swinford, Katie Morley and Dan Hyde

LONDON: -- Older people will be encouraged to work longer under a Government plan to increase the average retirement age by six months every year.

Ministers believe that the retirement age needs to increase dramatically to reflect Britain’s ageing population and to avoid a health care crisis.

The average age of retirement is 64.7 for men and 63.1 for women. The Department for Work and Pensions said in its business plan that it would like the average to rise by as much as six months every year.

The number of over-65s in England is expected to increase by 51 per cent over the next 20 years, and the numbers of those aged 85 and above will double by 2030. Ministers accept that the trend will hugely increase the costs to the NHS, elderly care and state pensions systems.

Steve Webb, the Liberal Democrat pensions minister, admitted that the target was “ambitious” but said the retirement age had already been rising for women.

He said: “If someone works an extra year they can add 10 per cent to their pension for life. What we are doing is catching up with decades of longer living.

“We are living longer but the labour market and people’s retirement age has not been keeping up. I have fought against a vague target of trying to get people to work longer to have something more specific.”

The target is contained in a document released by the Department for Work and Pensions which makes clear that an increase of six months would be a “meaningful change”.

“An increase in the average age of withdrawal of more than around 0.5 years would demonstrate an improvement,” the document states.

Mr Webb has said that the growing numbers of people living into their eighties and nineties would leave taxpayers with a rising bill and meant “the sums” would never add up if people continued to retire in their fifties.

George Osborne announced earlier this year that increases in life expectancy will automatically trigger a rise in the state pension age, which is likely to rise to 70 within 50 years. The state pension age is currently 65 for men, and is rising from 60 for women to come into line with men at 66 by 2020. It will continue to rise so people in their late twenties are likely to have to work until their 70th birthdays, according to official projections.

The Office for Budget Responsibility said that Coalition policies such as raising the state pension age and further cuts will reduce Britain’s debt as a proportion of national income by two thirds.

It found that without the measures, Britain’s debt would be £1.14 trillion higher in the next 50 years as the economy struggles to cope with the rise in the number of pensioners and the decline in the number of people working.

Full story: http://www.telegraph.co.uk/finance/personalfinance/pensions/11144991/Retirement-age-to-rise-by-as-much-as-six-months-per-year.html

-- The Telegraph 2014-10-07

[halloween]

How much demand is there for over 65s in jobs that require physical exertion? Even in skilled trades such as bricklaying, eventually you reach a stage where you can no longer continue, and that will often be before 70.

BTW in Oz we had a large tax increase with the introduction of the OAP. The retirement age was set at 65, because 2/3 of men died before reaching that age.

Edited October 7, 2014 by halloween

[MYKTHEMIN]

so long as this is applied to mp's pensions as well, just seen a flying pig!

[JockPieandBeans]

Successive Governments should have thought long and hard about their own Citizens before throwing taxpayers money around like confetti to all and sundry.

And most of them cannot understand that the majority of people think that they are lower than a piece of sh!t.

[lungbing]

We've got to pay for India's space program somehow.

[wackybacky]

Once we get out the EU we will be saving a lot of money.

Look how much EU (and non-EU) migrants cost the taxpayer every year.

Coming out of Europe will save 55 million a day just for starters. That in itself will cover around 2.7 million pension payments per week.

Edited October 7, 2014 by wackybacky

[smedly]

my UK pension age has already increased by one year from 65 to 66, in my view that's like me going into my bank on my 66th birthday and removing almost 10k GBP (at todays rates) and handing it straight back to the government, it is not acceptable for people who have already set a plan in place for their retirement

How about taxing the rich and wealthy instead of forcing old people to donate a hefty 10k GBP of their entitled and planned state pension

[JockPieandBeans]

my UK pension age has already increased by one year from 65 to 66, in my view that's like me going into my bank on my 66th birthday and removing almost 10k GBP (at todays rates) and handing it straight back to the government, it is not acceptable for people who have already set a plan in place for their retirement

How about taxing the rich and wealthy instead of forcing old people to donate a hefty 10k GBP of their entitled and planned state pension

Because that would affect most MP's and their buddies. Cannot have that now, can we.

[Elmer Gantry]

We've got to pay for India's space program somehow.

Is that where the new call centres are based.

[MJP]

Pretty soon they will roll out euthanasia with no strings attached.

I bloody hope so, seems life's taking forever these days. Looks like I'll be retiring when I'm 152 years old at this rate.

[naboo]

I've got a long way to go before reaching retirement. Have made 11 years of NI contributions. I could pay voluntarily to get to the 25-30 years needed for a full state pension, helping the government to pay the pensions of the opld guys now, but why would I do that when I have no faith I'd ever get it back? Raise NI contributions so that people can retire at 65 if that's what is needed. What they've done is disastrous for state pensions, and is exactly what they want so that we all go off and buy the private pensions from their banker friends so we can get raped by them instead.

Bloody Tories.

[transam]

We've got to pay for India's space program somehow.

AND those in the EU that retire before they are 65...................

[thaibeachlovers]

How much demand is there for over 65s in jobs that require physical exertion? Even in skilled trades such as bricklaying, eventually you reach a stage where you can no longer continue, and that will often be before 70.

BTW in Oz we had a large tax increase with the introduction of the OAP. The retirement age was set at 65, because 2/3 of men died before reaching that age.

i was a nurse, and had to retire before 65. sometimes it just isn't possible to continue working. do they really expect nurses to work till 70+?

if costs are a factor, the uk should stop giving 60 year olds free public transport, free meds, heating allowance etc and make it same age as retirement.

they should also stop trying to prolong life at any cost and accept that people can die of natural causes.

another 'solution' would be to allow voluntary euthanasia, which i would happily accept when i get too decrepit to enjoy life anymore. far better than messing up a suicide and dying in pain, or lingering on, unable to try again.

[MJP]

How much demand is there for over 65s in jobs that require physical exertion? Even in skilled trades such as bricklaying, eventually you reach a stage where you can no longer continue, and that will often be before 70.

BTW in Oz we had a large tax increase with the introduction of the OAP. The retirement age was set at 65, because 2/3 of men died before reaching that age.

i was a nurse, and had to retire before 65. sometimes it just isn't possible to continue working. do they really expect nurses to work till 70+?

if costs are a factor, the uk should stop giving 60 year olds free public transport, free meds, heating allowance etc and make it same age as retirement.

they should also stop trying to prolong life at any cost and accept that people can die of natural causes.

another 'solution' would be to allow voluntary euthanasia, which i would happily accept when i get too decrepit to enjoy life anymore. far better than messing up a suicide and dying in pain, or lingering on, unable to try again.

Couple of my friends are paramedics, 39 now. They're wondering how they'll physically cope at 50 let alone 70. It's ridiculous. The elephant in the room has always been pensions and that elephant just got bigger and bigger and . . .

[bertty]

^{I can just imagine the 85 year old bus driver getting to the end of his 8 hour shift being happy he made it thru yet another day without killing anyone.}

^{How about looking after the olduns, and stop given money to those overseas who have no right to it and also the spungers in the UK who have never done a days work in their life.}

[Bwanatickey]

The Conservative Party now governing the U.K is going to allow .

people with private pension funds, to withdraw the lot, next April.

Lots of cash will be sloshing about to give the feel good factor just before the next elections in May.

Most U.K voters are over 40 years old, a bribe to the older voters. Somebody else will have to pick up the Tab for their no private pension funds in years to come.

I will be pulling My money out, and I am looking to buy a house, a pig farm, a tourist resort, and a rubber plantation in Thailand to tide Me over when I retire there, along with My generous government pension.

[NeverSure]

Another way to do this is what they did in the US. It's optional and many opt for it.

One can retire at age 62 and collect Social Security. But if he waits until age 66 1/2 he'll not only make more money by working, but he'll get about 1/3 more in SS payments for life. If he works until age 70 he'll get about another 1/3 over retiring at 66 1/2. So opting for age 62 leaves a meager pension, and waiting until 70 gives a much better pension.

If a person earns at least about US50k for the last 20 years of working, he'll pay in enough to get about US$2500 per month at 66 1/2, or $3,300 if working until age 70. Payments into the system affect benefits so those who don't work or pay very little based on low income don't get as much. It's something we pay for.

[MJP]

The Conservative Party now governing the U.K is going to allow .

people with private pension funds, to withdraw the lot, next April.

Lots of cash will be sloshing about to give the feel good factor just before the next elections in May.

Most U.K voters are over 40 years old, a bribe to the older voters. Somebody else will have to pick up the Tab for their no private pension funds in years to come.

I will be pulling My money out, and I am looking to buy a house, a pig farm, a tourist resort, and a rubber plantation in Thailand to tide Me over when I retire there, along with My generous government pension.

At least you see through it. It's the last chair leg on the fire.

Don't do what you say in your last line though unless you have children there and even then only if you can trust them. Very risky.

[MAJIC]

Here we have the big cover up by Politicians who have ****** up our state Pension Schemes year on year,and now desperation has set in and the Scumbag UK Politicians are resorting to blame the people for living too long. If it wasn't so serious you could almost laugh them out of office!

Just ask them to explain this one!!!!!

http://www.telegraph.co.uk/finance/personalfinance/pensions/8463311/Fifth-of-poor-men-die-before-65.html

[Bwanatickey]

That was tongue in cheek, I sat and thought up the biggest losses , that you can invest in Thailand.

I am going to pull My millions out of My Private pension fund though, next April.

Because one thing I know for sure is this, when you retire in the U.K you have to have a massive private pension and lots of money, or nothing.

If you have a tiny pot like mine, in reserve,you will receive no state help.

[NeverSure]

i was a nurse, and had to retire before 65. sometimes it just isn't possible to continue working. do they really expect nurses to work till 70+?

-snip-

This one reason that I like the optional system with benefits increasing the longer one works.

BTW in the US most registered nurses don't do direct patient care. They work in an office doing things such as checking billings, checking compliance and other things that require the knowledge of the medical terminology and training. Of course some are nurse managers and other work in risk management and so forth. Trained nurse's aids to most of the heavy lifting. They call an RN to start an IV, etc.

But by the time an RN gets older and has more experience, the hospital doesn't want to lose them due to a shortage of nurses, and they will find a desk spot they can train for.

[MJP]

That was tongue in cheek, I sat and thought up the biggest losses , that you can invest in Thailand.

I am going to pull My millions out of My Private pension fund though, next April.

Because one thing I know for sure is this, when you retire in the U.K you have to have a massive private pension and lots of money, or nothing.

If you have a tiny pot like mine, in reserve,you will receive no state help.

Phew! For a moment there I thought you were serious.

Yes, indeed. Better to have nothing than a bit.

[MAJIC]

How much demand is there for over 65s in jobs that require physical exertion? Even in skilled trades such as bricklaying, eventually you reach a stage where you can no longer continue, and that will often be before 70.

BTW in Oz we had a large tax increase with the introduction of the OAP. The retirement age was set at 65, because 2/3 of men died before reaching that age.

And people dying that early more than cover those that live to a ripe old age,but claiming that people living too long has caused the pension problem,is a ready made excuse for the Politicians incompetence!

[MJP]

How much demand is there for over 65s in jobs that require physical exertion? Even in skilled trades such as bricklaying, eventually you reach a stage where you can no longer continue, and that will often be before 70.

BTW in Oz we had a large tax increase with the introduction of the OAP. The retirement age was set at 65, because 2/3 of men died before reaching that age.

And people dying that early more than cover those that live to a ripe old age,but claiming that people living too long has caused the pension problem,is a ready made excuse for the Politicians incompetence!

Whole thing's been a Ponzi scheme from day one.

[pitrevie]

Once we get out the EU we will be saving a lot of money.

Look how much EU (and non-EU) migrants cost the taxpayer every year.

Coming out of Europe will save 55 million a day just for starters. That in itself will cover around 2.7 million pension payments per week.

Yep that will solve all our problems and Britain can return to what it was before joining the EU, a thriving dynamic world leader with the world queuing up to get British exports just like in the good old days.

Great that we will be able to solve all our problems just by getting out of Europe, who would have thought it would be so easy?

[jacko45k]

my UK pension age has already increased by one year from 65 to 66, in my view that's like me going into my bank on my 66th birthday and removing almost 10k GBP (at todays rates) and handing it straight back to the government, it is not acceptable for people who have already set a plan in place for their retirement

How about taxing the rich and wealthy instead of forcing old people to donate a hefty 10k GBP of their entitled and planned state pension

I have just reached the qualifying number of years of NHI payments this year for a full state pension, and they have bumped it up by another 5 years, that means I have to keep paying until I pretty much qualify for the pension.

Easier to just fly in from Somalia.

[andersonmatty]

Successive Governments should have thought long and hard about their own Citizens before throwing taxpayers money around like confetti to all and sundry.

And most of them cannot understand that the majority of people think that they are lower than a piece of sh!t.

memories, pie & beans, went aff the mince pie's on to macaroni pie's, has been a long since I had one

[farangbanok]

If a person under retirement age gets a minimum wage, which is considered the minimum needed to live on, then why is the state pension not the same?

Pensioners need to live too!

[Eneukman]

<script type='text/javascript'>window.mod_pagespeed_start = Number(new Date());</script>

my UK pension age has already increased by one year from 65 to 66, in my view that's like me going into my bank on my 66th birthday and removing almost 10k GBP (at todays rates) and handing it straight back to the government, it is not acceptable for people who have already set a plan in place for their retirement

How about taxing the rich and wealthy instead of forcing old people to donate a hefty 10k GBP of their entitled and planned state pension

The age at which you can claim the state pension goes up to 65 from April (?) 2020 - 2 months before I reach my 65th birthday! Needless to say, I am not happy. Whilst there are some jobs people can do until they're 70, there are many others that working till the age of 70 is simply impossible.

If a person under retirement age gets a minimum wage, which is considered the minimum needed to live on, then why is the state pension not the same?

Pensioners need to live too!

Exactly!

Alan

[smedly]

the problem as I see it is that money that was intended to support pensions should have been protected and untouchable for other budgets, instead through serious fiscal mismanagement mostly by the labour party they have used the pension pot for other things to cover their asses

Like I have said many times before - Tony Blair and Gordon Brown should be in jail for gross stupidity and squandering UK tax payers money - just look what Brown did with the UK gold reserves - he should be locked up for that alone

I have been planning for years to get my UK state pension at 65 (I can afford it but I'm still pissed and angry) only to find that I will have to pay approx. 10k GBP back to the government in my first year were I at 65 should have been getting my money - they changed the rules upped the age by a year and in my opinion that has cost me "ten thousand pounds" some people have had it increased up to 3 years aged 68, that means for those affected you will be contributing 30k of your first 3 year pension to an incompetent squandering crowd of millionaires that have been in office in the UK and don't give a To55