Retirement age to rise
Discussion
It seems we will all have to retire at 67 (while public sector workers claim their pensions at 60)
BBC Article
State pension age 'should rise'
The basic state pension may be given a significant boost
A rise in the basic state pension and an increase in the age at which it can be claimed is to be recommended by the Pensions Commission, the FT has said.
The commission's report will call for a more generous state pension but a rise in the claimant age to 67 when it is published this month, the paper said.
A new national savings plan, in which individuals will automatically have to enrol, will also be recommended.
The commission has been tasked with finding a blueprint for pension reform.
A Pensions Commission spokeswoman said the FT article was speculative and that it would not be commenting ahead of the report's publication on 30 November.
New savings plan
According to details of the report obtained by the FT, the commission will call for a generous rise in the state pension.
This should rise from the current £80 a week to closer to the £109 a week paid out through the means-tested minimum income guarantee.
To pay for this increase, the report will recommend that the age at which people can claim the state pension should rise from 65 to 67.
I certainly think that this kind of headline is not going to go down very well
The proposals, to come into force after 2020, would affect everyone currently under the age of 50.
The report will also call for the creation of a new national savings plan, modelled on a scheme currently being set up in New Zealand.
Individuals would be enrolled automatically, although they would still retain the right to opt out of the scheme.
One pension expert said any proposal to raise the state pension age would be unpopular.
"I certainly think that this kind of headline is not going to go down very well, especially after the recent deal we have seen for public sector pensions," Dr Ros Altmann, pensions expert at the London School of Economics, told the BBC.
BBC Article
State pension age 'should rise'
The basic state pension may be given a significant boost
A rise in the basic state pension and an increase in the age at which it can be claimed is to be recommended by the Pensions Commission, the FT has said.
The commission's report will call for a more generous state pension but a rise in the claimant age to 67 when it is published this month, the paper said.
A new national savings plan, in which individuals will automatically have to enrol, will also be recommended.
The commission has been tasked with finding a blueprint for pension reform.
A Pensions Commission spokeswoman said the FT article was speculative and that it would not be commenting ahead of the report's publication on 30 November.
New savings plan
According to details of the report obtained by the FT, the commission will call for a generous rise in the state pension.
This should rise from the current £80 a week to closer to the £109 a week paid out through the means-tested minimum income guarantee.
To pay for this increase, the report will recommend that the age at which people can claim the state pension should rise from 65 to 67.
I certainly think that this kind of headline is not going to go down very well
The proposals, to come into force after 2020, would affect everyone currently under the age of 50.
The report will also call for the creation of a new national savings plan, modelled on a scheme currently being set up in New Zealand.
Individuals would be enrolled automatically, although they would still retain the right to opt out of the scheme.
One pension expert said any proposal to raise the state pension age would be unpopular.
"I certainly think that this kind of headline is not going to go down very well, especially after the recent deal we have seen for public sector pensions," Dr Ros Altmann, pensions expert at the London School of Economics, told the BBC.
Jaglover said:But our retirement age is 65? I think it has been since 1992 (when it was raised from 60).
modelled on a scheme currently being set up in New Zealand.
I don’t see why this model would work in the UK, we have implemented other systems that allow a lower tax strain despite the aging population. That’s not to mention the aid of net migration to New Zealand and the difference in working attitudes to the UK.
Einion Yrth said:
A new national savings plan, in which individuals will automatically have to enrol, will also be recommended.
National Insurance II - this time it's crippling.
2@s
I was about to have a good rant at that before I noticed there will be an option to opt out.
If it does become compulsory then it will be just another tax, after all that is how NI started out.
Just read in my (small) personal pension plan that the age I can claim is going up, and that I can get a lump sum but most of it will be taxed.
why should I pay into a pension I cant access until Im 55 and then Im taxed on 75% of it as a lump sum. If I die, my spouce gets only 50%. If I live to 75 then I will get back exacty what I paid in (no interest or investment - straight paid in paid out figure), beyond 75 then Im gaining what the money has grown by/invested in. So even by about 80 I could have saved the same money and got back the same if I invested it in a bank ac.
Current thinking is to cancel the pension and reduce a mortgage.
Borrow 100k and you pay back 200k. Hence reduce my pension contributions and pay off a mortgage substantially earlier saving money.
Who is to say they wont increase the age again, or tax you even more on it? I would sooner have control of it, beable to earn an income from a rented accoomoadation and have an increasing capital and still pass it on the my dependants when I pop my cloggs. Sure its taxed but so are pensions.
I dont trust this govt.
why should I pay into a pension I cant access until Im 55 and then Im taxed on 75% of it as a lump sum. If I die, my spouce gets only 50%. If I live to 75 then I will get back exacty what I paid in (no interest or investment - straight paid in paid out figure), beyond 75 then Im gaining what the money has grown by/invested in. So even by about 80 I could have saved the same money and got back the same if I invested it in a bank ac.
Current thinking is to cancel the pension and reduce a mortgage.
Borrow 100k and you pay back 200k. Hence reduce my pension contributions and pay off a mortgage substantially earlier saving money.
Who is to say they wont increase the age again, or tax you even more on it? I would sooner have control of it, beable to earn an income from a rented accoomoadation and have an increasing capital and still pass it on the my dependants when I pop my cloggs. Sure its taxed but so are pensions.
I dont trust this govt.
superlightr said:
Who is to say they wont increase the age again, or tax you even more on it? I would sooner have control of it, beable to earn an income from a rented accoomoadation and have an increasing capital and still pass it on the my dependants when I pop my cloggs. Sure its taxed but so are pensions.
I dont trust this govt.
I had a conversation along these lines with my IFA a few years back, basically she said you take your pick. Do the max ISA each year and you putting post tax money in, but the ultimate lump sum is totally tax free and you have control over it. In an pension the money that you put is in tax free, but the latter, hopefully larger amount that you get back is taxed at future hence uncertain % tax rates ( lets face it they ain't going down are they ) and Mr Brown has control over the money then.
The only thing to be aware of is that your pension is protected if you go bankrupt whereas your other assets aren't.
Jaglover said:I’m sure they could find you a spot pushing paper, thinking about a change to the public sector?
I don't disagree with the pension age rising to 67, after all we are all living longer and costs need to be controlled some how.
I do object to state employees being able to retire at 60, while the rest of us pay higher taxes to support their generous final salary pension schemes.
timmy30 said:
Who is to say they wont increase the age again, or tax you even more on it? I would sooner have control of it, beable to earn an income from a rented accoomoadation and have an increasing capital and still pass it on the my dependants when I pop my cloggs. Sure its taxed but so are pensions.
I dont trust this govt.
In an pension the money that you put is in tax free, but the latter, hopefully larger amount that you get back is taxed at future hence uncertain % tax rates ( lets face it they ain't going down are they ) and Mr Brown has control over the money then.
The only thing to be aware of is that your pension is protected if you go bankrupt whereas your other assets aren't.
Hi Tim (timmy30)
If I go bankrupt, as im self employed I will/could lose everything anyway. Always had that risk over may head for the last 15 years or so. I just dont like the goal posts being moved, especially when im on the reserve bench watching the cluster fxck of a game on the sloping pitch with the ref. being a half blind imbicile and wearing 'tony is great' slogan across his back.
My (oh sounds like a good idea) pension if I keep paying into will get me £10500 a year when im allowed to claim it. (monthy payment of £323)
My retirement is selling my business as a lump sum and rented accommodation providing an income with the benefit of passing it to my children or selling for emergency cash. (hence im really screwed if I go bankrupt)
That £323 a month will help knock on the head eary a mortgage and I think will be a better bet for me then a pension which If i die at 70 or 75 will marginal and then the wife will get screwed over anyway. At least with property it passes in my will (taxed) but its still there.
>> Edited by superlightr on Thursday 17th November 10:27
superlightr said:
Who is to say they wont increase the age again, or tax you even more on it? I would sooner have control of it, beable to earn an income from a rented accoomoadation and have an increasing capital and still pass it on the my dependants when I pop my cloggs. Sure its taxed but so are pensions.
I dont trust this govt.
In an pension the money that you put is in tax free, but the latter, hopefully larger amount that you get back is taxed at future hence uncertain % tax rates ( lets face it they ain't going down are they ) and Mr Brown has control over the money then.
The only thing to be aware of is that your pension is protected if you go bankrupt whereas your other assets aren't.
Hi Tim (timmy30)
If I go bankrupt, as im self employed I will/could lose everything anyway. Always had that risk over may head for the last 15 years or so. I just dont like the goal posts being moved, especially when im on the reserve bench watching the cluster fxck of a game on the sloping pitch with the ref. being a half blind imbicile and wearing 'tony is great' slogan across his back.
My (oh sounds like a good idea) pension if I keep paying into will get me £10500 a year when im allowed to claim it. (monthy payment of £323)
My retirement is selling my business as a lump sum and rented accommodation providing an income with the benefit of passing it to my children or selling for emergency cash. (hence im really screwed if I go bankrupt)
That £323 a month will help knock on the head eary a mortgage and I think will be a better bet for me then a pension which If i die at 70 or 75 will marginal and then the wife will get screwed over anyway. At least with property it passes in my will (taxed) but its still there.
>> Edited by superlightr on Thursday 17th November 10:27
Hello mate
, best thing as ever is to diversity I think, all eggs in one basket n'all that. One thing you might want to do later on is talk to an IFA about tax planning, as you mention inheritance and will. By the way........ that's a funny looking car in your profile picture?
not been to IFA but we have sorted our wills and tax planning/trusts etc.
Spreading the risk is a good idea but then you have the risk of none doing rather well. I would sooner take an educated chance that one thing will do really well and bung my eggs there and have loads of eggs when Im old and wrinky - well older and more wrinkly then i am at the moment. Then just an average nest of eggs. (am I gready?)
But then again I may get to that old and wrinkly stage and be more wiser and wish i hadnt put all my eggs in one basket (property) but as the 75yrs age is the pivot, I would be surprised if I make it past 80 anyway. Who knows with hindsight.
At the way im going (into trees) I may not even make anything close to that.... Doh.
enjoy your views and comments !
Spreading the risk is a good idea but then you have the risk of none doing rather well. I would sooner take an educated chance that one thing will do really well and bung my eggs there and have loads of eggs when Im old and wrinky - well older and more wrinkly then i am at the moment. Then just an average nest of eggs. (am I gready?)
But then again I may get to that old and wrinkly stage and be more wiser and wish i hadnt put all my eggs in one basket (property) but as the 75yrs age is the pivot, I would be surprised if I make it past 80 anyway. Who knows with hindsight.
At the way im going (into trees) I may not even make anything close to that.... Doh.
enjoy your views and comments !
JonRB said:
If I go bankrupt, as im self employed I will/could lose everything anyway.
yes but not keen to publish our accounts/tax liabilities change/corp tax.
We have settled as a partnership - wife and I after taking proper advice/costings/liabilities.
A LLP may be an option in a few years though.....
Thanks for the thought.
Whats your take on Pensions/investments/property?
superlightr said:
not been to IFA but we have sorted our wills and tax planning/trusts etc.
Spreading the risk is a good idea but then you have the risk of none doing rather well. I would sooner take an educated chance that one thing will do really well and bung my eggs there and have loads of eggs when Im old and wrinky - well older and more wrinkly then i am at the moment. Then just an average nest of eggs. (am I gready?)
But then again I may get to that old and wrinkly stage and be more wiser and wish i hadnt put all my eggs in one basket (property) but as the 75yrs age is the pivot, I would be surprised if I make it past 80 anyway. Who knows with hindsight.
At the way im going (into trees) I may not even make anything close to that.... Doh.
enjoy your views and comments !
Ah my friend, that's a very dangerous way to play. But good luck to you with it.
Investors tend to overestimate their ability to pick a winner. Typically negative outcomes are seen as 'bad luck' whilst positives are seen as 'insight'.
You have nicely turned portfolio theory on it's head though by suggesting that having a diverse portfolio of investments is risky, because you risk foregoing the huge returns that you'll get on that super investment that no one else has spotted
Mate we all want a ten bagger......fockit, just think, if I could find a sure fire ten bagger stock on AIM, one that's going to fly ten fold over 2 years, and if I put my whole portfolio into it I could retire now at 32. There are stocks that have done it, I was looking at one small oil stock that's up 1700% in 2 years! Bollox to property mate
>> Edited by timmy30 on Thursday 17th November 10:50
Jaglover said:
A new national savings plan, in which individuals will automatically have to enrol, will also be recommended.
National Insurance II - this time it's crippling.
2@s
I was about to have a good rant at that before I noticed there will be an option to opt out.
If it does become compulsory then it will be just another tax, after all that is how NI started out.
Yup, would they abolish NI if they bring this out? No.
They just want to take more money and say "this is for when your older, we'll look after it for you" Yeah right!
Think I'll stick the £100 they would take a month in my own bloody pension plan, and get company to match my increased contributions.
This government really are in a hole. All they seem to want to do is make us ALL pay for it until we retire, at which point we get fook all for the massive amounts we've paid in!
They can p1ss off if they think they are getting another penny in the name of "future pension provision"... would love to opt out of the current national pension too and save some money. I know I won't be getting one full stop by 2047!
Dave
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