Think Tank: UK state pension age will soon need to rise to 71

[scifisam]

BBC News - Income needed to retire jumps as family costs rise

Pension income needed to retire jumps as family costs rise

Experts estimates that a single person needs £31,300 a year for a moderate retirement.

www.bbc.co.uk

Ffs

That's a load of bollocks though. It's not taking housing costs into account, because (the article says) they think most people of retirement age will have a mortgage paid off or will be able to get a benefit top up for rent (I don't think they would, with that income. They wouldn't in my area. So that's one area of economics they don't know much about).

Without housing costs, WTF are they expecting people to be spending to need £31k for a comfortable retirement? It will be taxed, but there'd be no NI to pay, so that'd save over £2k compared to going to work. Most people don't live on £31k after rent or mortgage payments.

I can't see anything saying that they're taking possible future inflation into account, so that wouldn't explain it.

 

[Elpenor]

Does the 31k maybe include a reasonable amount for holidays and perhaps spread big purchases eg car over several years? I live on far less than that now as do many others I’m sure

my work pension plus state pension should in theory offer me approx what I get now for salary, and reckon my private pension from old job gives me 4 years living costs if I’m lucky so may be able to retire a bit early?

 

[scifisam]

Does the 31k maybe include a reasonable amount for holidays and perhaps spread big purchases eg car over several years? I live on far less than that now as do many others I’m sure

my work pension plus state pension should in theory offer me approx what I get now for salary, and reckon my private pension from old job gives me 4 years living costs if I’m lucky so may be able to retire a bit early?

It's the moderate income, so similar to the income quoted for a couple with a moderate pension income, which they think gets you:

• A moderate standard ups the amount slightly and includes running a small second-hand car, a week holidaying in Europe and a long weekend break in the UK

I manage all that except the car, but I have a lower income, pay NI, support two people not one, am paying off a postgrad student loan and paying into my pension at the highest rate my employer will match (9%), plus paying into a private pension a little bit (I prefer the security of keeping them separate). Plus I'm paying rent. Lower rent than private rent (social housing) but it's far more than the zero they're assuming.

£31k with no rent or mortgage, national insurance, pension payments or student loan payments going out. Yeah, I think I could run a secondhand car and go on holiday to Spain for a week.

 

[Nylock]

What's the fire rating on a standard think tank?

Depends on how much petrol you put in it....

 

[BoatieBird]

If I work until I'm 66, my USS pension will give me £18-19K a year + a lump sum of around £45K.
If I go when I'm 58 I'll get £11-12K a year + a lump sum of around £35K.

I'm tempted to go at 58 tbh, the mortgage will be paid off and I've got a couple of other savings pots (including the investment builder part of the USS) that I can chuck some money in over the next few years.

I'm 53 next month so in my head that's when my 5 year plan kicks in

 

[BoatieBird]

I know I'm very lucky to have got to this position without, tbh, much forethought or planning, I just happened to start working somewhere that had a decent pension plan when I was 25 and I'm still there...

During my working life I've seen my state pension age go from 60, to 65, then 67 and it looks like it's going to increase to at least 68 before I get there.

 

[Numbers]

I know I'm very lucky to have got to this position without, tbh, much forethought or planning, I just happened to start working somewhere that had a decent pension plan when I was 25 and I'm still there...

During my working life I've seen my state pension age go from 60, to 65, then 67 and it looks like it's going to increase to at least 68 before I get there.

Pretty similar here, have somehow managed to build up a decent private pension without contributing much myself. I’m going to draw down the 25% tax free lump sum when I hit 55 next year, fuck knows what the future has in store and I want to enjoy (some of) the money.

I’ve not thought about when to retire retire as I enjoy work but will definitely ease off the gas when I’m 60 and when the mortgage is paid off.

Between us both we have 4 different private pensions and will then have the state pension so should be OK, and feel blessed to be in this position.

Mrs Numbers has a pretty big inheritance to come too, but obvs we don’t want her Ma dying anytime soon, but when she does…

 

[wemakeyousoundb]

no private pension here, should I think about it heading towards 57 at next check point or is it too late already?

 

[Elpenor]

If I work until I'm 66, my USS pension will give me £18-19K a year + a lump sum of around £45K.
If I go when I'm 58 I'll get £11-12K a year + a lump sum of around £35K.

I'm tempted to go at 58 tbh, the mortgage will be paid off and I've got a couple of other savings pots (including the investment builder part of the USS) that I can chuck some money in over the next few years.

I'm 53 next month so in my head that's when my 5 year plan kicks in

If you can retire early then 100% do it. You’ll get to enjoy retirement with a higher number of “healthy” years than those who have to work longer.

 

[StoneRoad]

My mam died before she could draw her pension ... but pop managed to almost reach his century : so that evened things out a bit.

When I started work I was aiming to retire late 50s or so, and had various plans to achieve that.
Sadly, it didn't happen quite like that - in fact, although I'm technically an OAP now - I still do some work. It's largely unsalaried, although I do claim some expenses ...
However, whilst the house mortgage is paid off; food, energy & other running costs still take a large chunk out of my state pittance.

 

[nottsgirl]

no private pension here, should I think about it heading towards 57 at next check point or is it too late already?

Do you not have a workplace pension? I would overpay that a bit rather than get another pension.

 

[wemakeyousoundb]

Do you not have a workplace pension? I would overpay that a bit rather than get another pension.

self employed here so no workplace pension.

 

[nottsgirl]

self employed here so no workplace pension.

You get tax relief on pension savings so it’s more effective than just saving money. Although it tends to be invested in stocks and shares I think so you might be safer just saving the money. Idk.

 

[ATOMIC SUPLEX]

I'm fairly resigned to the fact I'll never actually be able to retire.

Me too. Though fuck knows what I'm going to be able to do. . . . Plus work is super screwed right now and I haven't put anything into a pension. . . I am not even making enough now to put anything in.