SIPP age increased to 58?
Discussion
Um, not really.
That's a bit like saying your bank will call in your mortgage because you can afford it. The fact you had planned to pay it back at £x for x months is now meaningless, because - you have the money so what you moaning for...
Retirement takes planning, and as someone who is about half way through their working life having already planned on that basis I just cant see how its even legal to change things that are this important.
That's a bit like saying your bank will call in your mortgage because you can afford it. The fact you had planned to pay it back at £x for x months is now meaningless, because - you have the money so what you moaning for...
Retirement takes planning, and as someone who is about half way through their working life having already planned on that basis I just cant see how its even legal to change things that are this important.
red_slr said:
Of course you do mix it - but the one thing you expect to stay the same is the age at which you can start to draw the pension element.
Seems its only me that's bothered... will revisit this thread in 20 years! See how people are feeling then.
I think you're rather seriously missing the point. When I was born life expectancy was just over 68 years, for someone of my age it is now appears to be over 80.Seems its only me that's bothered... will revisit this thread in 20 years! See how people are feeling then.
One might have thought a pension that only lasted 5 or 6 years at 65 was good value as you probably wouldn't have got most of it. Now however I need to be thinking of a pension to last 15-20 years which is a helluva lot more expensive.
It is not the government changing the rules so much as us lasting a lot longer and needing to fund a considerable period of economic inactivity.
Lucky you're not female, their state pension age has gone from 60 to 67. I can see the state pension age going towards 80 in years to come. Private pensions have to move with it, we have far too many pensioners and not enough workers to pay for them.
To balance it out we now start work much later than we used to, 21 or more before most people go out and start working, so it's still around 49 years for a normal working life.
To balance it out we now start work much later than we used to, 21 or more before most people go out and start working, so it's still around 49 years for a normal working life.
red_slr said:
Of course you do mix it - but the one thing you expect to stay the same is the age at which you can start to draw the pension element.
Seems its only me that's bothered... will revisit this thread in 20 years! See how people are feeling then.
The very fact you are thinking about pensions means that in 20+ years time you will probably in a much better position financially than a lot of people! I know FAR more people my age (mid 30's) with little or no retirement provision than with. Many are dependent on state pension and cashing in on house price increases. I'd rather be retiring a bit later but with something in place than at an earlier age but with little or no pension to my name, especially if i am expecting to live into my 80's and beyond.Seems its only me that's bothered... will revisit this thread in 20 years! See how people are feeling then.
I see this with some clients - the difficulty is, that many people are faced with making decisions, in the first 30 days or so of their working lives, that will affect how their final 30 years will be. It's so easy to set aside decision making about financial futures for 'a month or so' and before you know it, 6 months have passed and by then, you're in a credit card, social, fuel/car, rental lifestyle that subordinates and thoughts of saving and investing. By then, it's all that harder to find the disposable means to set aside for the future. Then, when you do start earning, much of the benefit that you can achieve by setting aside smaller amounts at outset and relying more on compound growth is lost and you are faced instead with countering the cost of delay that mitigates much of the benefit that you get.
Simple solution - over the next 20 years of so (which you seem to suggest is the period until you reach age 55) divert some of the money you would have paid in to a pension into an ISA or something like that instead. Divert enough to cover those two years between age 55 and age 57 when you were previously relying on being able to draw a pension.
20 years is plenty of time to make a relatively minor change. Plus, the change in minimum retirement age (i.e. ability to commence receiving a tax-approved pension) was announced a few years ago - I can't remember exactly when but it wasn't a particularly recent announcement. I think the intention is for it to track the State Pension Age less 10 years.
20 years is plenty of time to make a relatively minor change. Plus, the change in minimum retirement age (i.e. ability to commence receiving a tax-approved pension) was announced a few years ago - I can't remember exactly when but it wasn't a particularly recent announcement. I think the intention is for it to track the State Pension Age less 10 years.
red_slr said:
Of course you do mix it - but the one thing you expect to stay the same is the age at which you can start to draw the pension element.
Seems its only me that's bothered... will revisit this thread in 20 years! See how people are feeling then.
My planning is quite heavily impacted by this too. When I started my pension the age at which I could access it was 50. Now it is 57, and that will probably rise to 60 before I can access it.Seems its only me that's bothered... will revisit this thread in 20 years! See how people are feeling then.
Now, since this is a private pension that I've paid for, I should be able to access it as soon as its funded sufficiently.
There's certainly no justification for allowing the public sector to swan off into cushy retirement in their mid 50s while the rest of us paying for their pensions have to graft.
All you can do is reroute your pension contributions into buy to let like everyone else... And the young wonder why, when all other options are repeatedly taken off the table, that older generations see then as a money spinner. Sad really
LucreLout said:
All you can do is reroute your pension contributions into buy to let like everyone else...
Personally I don't see buy-to-let as the answer to every financial question, particularly when a couple can put up to £30,000 a year into ISAs.If you want to catch the ISA boat for 2014/15 you've got about 2 weeks left!
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