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Post by Fletchsmile on Aug 20, 2019 14:07:44 GMT 7
The UK pension lottery moving goalposts under discussion again
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Should the state pension age be raised to 75?
Changing retirement age would create £182bn windfall says influential centre-right think tank
Despite average life expectancy rising from around 50 to 80 over the past century, the pension age has remained relatively unchanged - although the government has been gradually raising it since April 2010.
Half of UK adults will be over 50 by the mid-2030s, which coupled with rising life expectancy means taxpayers face escalating costs unless people stay in work for longer, according to what the Daily Mirror describes as “Boris Johnson’s favourite think tank”.
The pension age is already set to increase to 67 by 2028 and to 68 by 2046 – but the research group (co-founded by former Conservative leader and work and pensions secretary Iain Duncan-Smith, who was behind the idea of Universal Credit) wants to see a faster increase.
The pensions bill has ballooned from £17bn in 1989 to £92bn now, making up £4 of every £10 of welfare spending. By 2023 it will cost £20bn more as the population ages and the birth rate falls.
To limit the cost to the state of this “major demographic shift”, the report calls for the state pension age to be accelerated to 70 by 2028 and then 75 by 2035.
Getting more people aged 55 to 64 into work would slash the costs of out-of-work benefits but also help boost GDP by around 9%, equating to £182bn, it claimed.
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rubl
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Post by rubl on Aug 20, 2019 14:24:02 GMT 7
I'm always a bit wary when a government talks about 'windfalls'. Mostly it relates to imaginative accounting.
Also those gents from the report probably do not depend on only the State Pension and may still retire at a reasonable age.
I wonder how large a part of the population depends on their state pension as sole source of income? Don't have figures for the Netherlands but know that only AOW is borderline poor.
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smokie36
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Post by smokie36 on Aug 21, 2019 3:23:33 GMT 7
Train the unemployed youth to work might be a better option.
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Post by Fletchsmile on Aug 21, 2019 18:27:25 GMT 7
75 as the default age seems ridiculous to me. So many pensioners really wouldn't be fit to work at that age. And as an employer you would really have question if 70 year olds were value for money. Years of built up service, so a high salary.
A lot of "suitable jobs" from employer perspective would end up being low level low salaried jobs.
By all means allow people to voluntarily work until 75, but making it compulsory would be ridiculous and so many pitfalls on all sides
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Post by Fletchsmile on Aug 21, 2019 18:38:24 GMT 7
I really hope one day one government has the common sense to start creating a separate pool for pensions, that is used only for future pension liabilities. The pay as you go model really isn't sustainable with the demographics in play, and has been crushed by the baby boomer generation. Baby boomers are a massive generation who funded a small generation of their parents who had suffered thru world wars. So their funding liabilities on a pay as you go basis were much saller relatively than today's poor sods. Now a smaller generation is funding this large baby boomer generation again. Worse still the baby boomers were the generation of entitlement who started expecting their "benefits" as something they were "entitled to" rather than the safety net that welfare was designed for. So not only did the baby boomers cause massive effects thru numbers and demographics, their attitude compounded it further. The solution involves starting to create a pot for the future. Start now. Some obvious ways: 1) Add 1% as a new NI contribution. Put it in a ring fenced pot and use it to create a wealth fund for future liabilities in X years time. Then start increasing that 1% gradually over time, say 1% every 2 years until we get to a stage where what is going in will match the ring fenced future liabilities. It will take years, but they need to start. 2) I would also issue very long dated bonds at next to nothing interest rates these days and put that into the pot as well to boost it. Invest in things that will long term exceed the cost of funding, eg equities, corporate bonds etc etc 3) If they want to get a bit more creative: add 1% to VAT, and throw that into the ring-fenced pot too. That way everybody who buys anything contributes, and not just workers.
Such very basic steps. So f*****g obvious 
Anything has got to be better than a slave class of poor 75 year old barstewards forced to work, because they and the government can't afford to support them.
Would help of course if people took responsibility for their own retirement  |
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Post by rgs2001uk on Aug 21, 2019 20:32:05 GMT 7
75 as the default age seems ridiculous to me. So many pensioners really wouldn't be fit to work at that age. And as an employer you would really have question if 70 year olds were value for money. Years of built up service, so a high salary. A lot of "suitable jobs" from employer perspective would end up being low level low salaried jobs. By all means allow people to voluntarily work until 75, but making it compulsory would be ridiculous and so many pitfalls on all sides With the advances on free medical care in the UK, the problem is the poor are living too long. Best have another cull, time for another war. |
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Post by Fletchsmile on Aug 22, 2019 9:57:01 GMT 7
75 as the default age seems ridiculous to me. So many pensioners really wouldn't be fit to work at that age. And as an employer you would really have question if 70 year olds were value for money. Years of built up service, so a high salary. A lot of "suitable jobs" from employer perspective would end up being low level low salaried jobs. By all means allow people to voluntarily work until 75, but making it compulsory would be ridiculous and so many pitfalls on all sides With the advances on free medical care in the UK, the problem is the poor are living too long. Best have another cull, time for another war. You'd definitely have been near the front of the train on Snowpiercer
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Post by rgs2001uk on Aug 22, 2019 11:51:13 GMT 7
^^^^^ top movie that fletch, and you are correct, I don’t wear a shoe on my head. Disodah.
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chiangmai
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Post by chiangmai on Aug 22, 2019 13:25:36 GMT 7
Interesting to understand that whilst many countries are extending the age at which state pensions are payable, the trend is for people to retire increasingly earlier than ever before - the average retirement age in the UK is now 63.9. www.lovemoney.com/gallerylist/75682/who-works-the-longest-real-retirement-ages-around-the-world-revealedThe US addressed the burden of pension payments (SSc) by offering a choice: retire 5 years early at age 62 and lose 30% per month; retire two years early at age 65 and lose 13% per month; age 67 is par; retire two years later at age 69 and gain an extra 13%; and so on. Over time the entire scale will move upwards to where age 62 becomes age 64 etc. Despite the fact that system comes from the US it actually makes sense, and oddly, seems like a good idea. |
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rubl
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Post by rubl on Aug 22, 2019 14:07:09 GMT 7
Interesting to understand that whilst many countries are extending the age at which state pensions are payable, the trend is for people to retire increasingly earlier than ever before - the average retirement age in the UK is now 63.9. www.lovemoney.com/gallerylist/75682/who-works-the-longest-real-retirement-ages-around-the-world-revealedThe US addressed the burden of pension payments (SSc) by offering a choice: retire 5 years early at age 62 and lose 30% per month; retire two years early at age 65 and lose 13% per month; age 67 is par; retire two years later at age 69 and gain an extra 13%; and so on. Over time the entire scale will move upwards to where age 62 becomes age 64 etc. Despite the fact that system comes from the US it actually makes sense, and oddly, seems like a good idea. The article from July 2018 may not have real current data. For the Netherlands it lists 62.9 as real retirement age, but this article from June 2018 says The real pensioenage of Dutch people has rather increased in 2017. Employees retired on average at 64 years and 10 months, that's five months later than in 2016. Since 2000 the real pensioenage has increased with more than four years (translation yours truly) "De echte pensioenleeftijd van de Nederlanders is in 2017 opnieuw fors gestegen. Werknemers gingen vorig jaar gemiddeld met 64 jaar en 10 maanden met pensioen, 5 maanden later dan in 2016. Sinds de eeuwwisseling is de echte pensioenleeftijd met meer dan 4 jaar omhoog gegaan." www.volkskrant.nl/nieuws-achtergrond/ook-vorig-jaar-steeg-de-echte-pensioenleeftijd-weer~ba7d5ffe/ |
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rubl
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Post by rubl on Aug 22, 2019 14:16:06 GMT 7
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Post by rgs2001uk on Aug 23, 2019 21:11:38 GMT 7
Fletch, you dissapoint me, you missed the best part of the movie, utterly brillaint, Tilda Swinton should have got an Oscar for this.
2:21, brillaint, "freeloadaers like you"
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rubl
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Post by rubl on Aug 24, 2019 16:46:38 GMT 7
Oh, by the way, do you know why women live longer than men?  |
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pathumseb
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Post by pathumseb on Aug 25, 2019 9:32:32 GMT 7
I get the feeling it will get higher in my lifetime, paid back all my NIC for years overseas but would not want to have to live on the state pension alone.Should it be? Probably, we are living longer, I would not mind paying more tax for a better retirement.
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rott
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Post by rott on Aug 25, 2019 12:44:34 GMT 7
75 as the default age seems ridiculous to me. So many pensioners really wouldn't be fit to work at that age. They would be if they exercised and ate proper food instead of sitting on their fat arses eating home delivered pizzas. |
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