Age of retirement

[Old Cruser]

How many of us think increasing the age of retirement isn't a good idea.
Should we really expect to carry on in our work place until the age of 67?

I checked for someone in their late 30's yesterday their retirement age which will be 67yrs in 2042;
They can expect to get £86 a week - how on earth will they live on that!

[handy]

Me for one I thought men's pension age was supposed to be going down at one time , but it went the other way my wife is now 60 but cannot get a pension for another 5 years , that's a lot of money being taken off people that have paid into the system.

[Fly]

It's not unlike keeping kids in school till they are 18. If they bring it in when a kid is 4, the kid won't notice.
The 13+ year olds will hate the idea though.
I could have a lesser amount of my pit pension in 2 years, I may as well leave it for another 20,
but who knows what's going to happen in the next 20 years. I might lose the lot !!

[Kent]

Surely that £86 a week is based on the national insurance paid so far. ?
the new system coming into force, April 2016, says everyone will receive £145
a week.
as for your original question, well some want to retire, some want to work part time,
and some are happy to carry on working full time.
do I agree, hmm... cant say as I am one of the lucky ones, and can
retire this December, tho' I have been asked to carry on...we will see.
 

[Old Cruser]

Surely that £86 a week is based on the national insurance paid so far. ?
the new system coming into force, April 2016, says everyone will receive £145
a week.
as for your original question, well some want to retire, some want to work part time,
and some are happy to carry on working full time.
do I agree, hmm... cant say as I am one of the lucky ones, and can
retire this December, tho' I have been asked to carry on...we will see.

That would make more sense Kent so maybe I misunderstood the calculation?

However ( if I have read correctly ) The 'New State Pension is only applicable if you reach State Pension age on or after 6 April 2016.
Which I won't get.

[Umpire]

I agree OC.This new minimum pension coming in in 2016 (they have still not said what exactly it will be)is very unfair.Providing you have got the necessary 30 odd years  of contributions you should get what ever figure they decide on.
I got over 40 years contributions in and get now where near that figure.
My wife retired about 6 years ago did not get a full old age pension because she had not got the necessary contributions in.Her younger sister who retired after they had brought down the number of years to qualify for a full pension  got the full pension and had a similar amount of contributions credited.The difference is about £30 per week.
Where is the fairness in that?

[Big Dave 2]

They can expect to get £86 a week - how on earth will they live on that!

They're not supposed to. They're supposed to pay into a private pension. I started paying into one over 40 years ago, not a lot each month but enough to give me a pension pot of over £50K which I'll start dipping into from next April. However that, with the earnings from my part-time work and with my state pension which started a couple of months ago when I reached 65, won't give me the disposable income I had when working full time and neither do I expect it to.

[Old Cruser]

@ umpire, I retired at 60 with a full state pension 6 years ago.
My hubby's state pension @ 65 starts This month having paid full contributions - but he gets less than I do, which we can't understand.

@ Big Dave, hubby has two pension annuities which we are currently sorting out.
25% is available from each as a tax free lump sum and the rest goes into a pension pot with providers of our choice ( unless you want to be screwed for tax on the rest )
The pension annuity is very similar to your amount.
There has been a lot to think about, with the different options available.

[Umpire]

OC is it anything to do with SERPS or second pension as it is now known by.Did you not have a company pension and he has.If so that would explain the difference.
The letter HMRC sent to him about 4 months ago inviting him to apply for his state pension should give a breakdown of his pension.If you have not had a letter giving you the pension from April it is imminent.Mine came last week in the brown envelope.

[Old Cruser]

OC is it anything to do with SERPS or second pension as it is now known by.Did you not have a company pension and he has.If so that would explain the difference.
The letter HMRC sent to him about 4 months ago inviting him to apply for his state pension should give a breakdown of his pension.If you have not had a letter giving you the pension from April it is imminent.Mine came last week in the brown envelope.

No he took over the family business and pain his self employment stamp.
We have wondered if it was because of his pension annuities he has, but don't see why he should be penalised for them, he's been paying into them for years.
He did have a breakdown of his pension awhile ago, but not had a letter re- pension update for April yet

[Umpire]

OC that maybe the reason.I am not sure but I think the self employed stamp just ensures you get the basic pension.It is up to the individual to make provision for any additional pension.I presume you must have had some SERPS on to your basic pension to make yours more than your Hubbys.
The basic pension will be £115.95 from April and as I said when you get the brown envelope it will give you a breakdown  of the amount you are due.

[Old Cruser]

OC that maybe the reason.I am not sure but I think the self employed stamp just ensures you get the basic pension.It is up to the individual to make provision for any additional pension.I presume you must have had some SERPS on to your basic pension to make yours more than your Hubbys.
The basic pension will be £115.95 from April and as I said when you get the brown envelope it will give you a breakdown  of the amount you are due.

All a bit confusing to me umpire.
I remember I paid single woman's NI when married and before I had my daughter. Whilst my friend paid the lesser married  woman's contribution.
Hubbies two annuities will take him over the state pension on a monthly basis - just waiting to see if he has to pay tax!!

[Umpire]

That's the reason then if you paid full stamp you will have some  SERPS  on top of you basic pension.
With regard to your Hubby the figure is £10500 before he will pay tax.If his income is over that figure and yours is well under that figure as I mentioned in my post last week you can transfer  £1060 of your unused personal allowance to him and that that would save him £212 per year tax ie 20% of £1060

If you are in that situation google HMRC and go to the official site and there is a heading covering this.Just follow the instruction.Let me know if you need any help.

[Old Cruser]

@ umpire, thanks for that, we will see how this unfolds and yes if need be I will definitely contact you. As you will have gathered I have little knowledge of all this.

As for the other side of the extended retirement do others reaching or all ready retirement age think that by 67 is too much to ask to be working in their current jobs?

All my friends have said to me that they didn't know where I got the energy from to be as active as I have, but I have to admit to a slowing in my stamina this last year, tiring more easily and just wanting a quieter life - and I'm not yet 66 until later this year.