Pension age worries

[Pumpkin Pie]

Originally Posted by djewkes

I keep reading that we can’t afford state pensions... but how do other countries afford it... we have one of the lowest state pensions in the world with one of the highest state pensions ages... what on earth has gone wrong?
And the baby boomers being well off is a myth to divide opinions and make the changes to pension ages seem more palatable to the younger generation...

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Well said.

[WhereIBelong]

Originally Posted by Moorlandman

Rather than asking the general public to pay slightly more in taxation, the government has decided to raise the pension age and at the same time, reduce the tax rate for those earning above £150k a year.

Other countries pay far higher taxes to fund their pensions. There is no way that will happen under the Tories

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we used to pay higher tax - when I started working base rate was 33% and there were many tiers - tax rate was 83% if you earned over £24k (equivalent purchasing power today about £80k)

[djewkes]

[Talland 2016]

Originally Posted by Tinkerbell

I jumped ship in 2014 at 55 after 35 years. I don't get my state until 2025. I left because of the everchanging terms and conditions.

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I retired aged 55 after 35 years of nursing and took my NHS pension
However I’m now back working 22.5hrs a week (Monday, Tuesday & Thursday) so every weekend is a long weekend & I can plan more holidays to Florida

[ROBBOTOO]

I understand that while we pay into the SP that money goes to people already in receipt of their pension, I get that. But perhaps you should be able to stop paying into the SP when you have paid in for the full qualifying years. I suspect many like myself will be paying in for many more years than the amount needed to get a full SP. In those circumstances you could then pay that money into a private pension.

[Pumpkin Pie]

Originally Posted by WhereIBelong

we used to pay higher tax - when I started working base rate was 33% and there were many tiers - tax rate was 83% if you earned over £24k (equivalent purchasing power today about £80k)

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We have different tax rates in Scotland now. The starting point for paying higher rate tax was lowered.

[munmun]

Originally Posted by ROBBOTOO

I understand that while we pay into the SP that money goes to people already in receipt of their pension, I get that. But perhaps you should be able to stop paying into the SP when you have paid in for the full qualifying years. I suspect many like myself will be paying in for many more years than the amount needed to get a full SP. In those circumstances you could then pay that money into a private pension.

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No National Insurance is payable by those in receipt of state pension, working or retired I believe.

[tspill]

Originally Posted by dubletrub

Or maybe we can pay into a pension and have a holiday every few years when we work hard.
Our old neighbour growing up was of your thinking, the family never had holidays put everything he had into different pots so they could retire early. 50 years old diagnosed with early onset alzheimer's, in a care home for 55, his saving and house split down the middle with half for his wife to live off and the other half paid all his fees.
My husband worked hard died at 60.
I am paying into a pension but I do believe we are allowed to live as well.
The people i talk of and live amongst pay their mortgage/rent, bills and living cost and are lucky to get a sun £9.50 holiday a year and you are judging those people for not saving and being unhappy that we cannot retire at a reasonable age when in these very working class areas people are not living into their 80s.

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I dont disagree with any of this - everyone gets to make their own choices.
But what then happens is people then whinge and complain when they dont like the consequences of these choices.

[tspill]

Originally Posted by Nimbus

Yeah, but your number was at the higher end. Most DIBBers don't go on £12K holidays every year. And as the DIBB has often shown, an occasional holiday to Florida can work out no more expensive than a yearly holiday in, say, Spain.

My second point was, even if I put all the money I spend on Florida holidays into a pension pot, I won't have anything near enough to live off when I retire. It would make little difference to my pension.

So, sure, I can choose not to go to Florida every so often. But I still won't be able to retire "early" (before 70) if I do.

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So pick a different number.

If your second point was the case, you would never put anything in. Every penny you contribute helps.

And you and I and everyone else gets to make these choices. But we have to live by them.

[ROBBOTOO]

Originally Posted by munmun

No National Insurance is payable by those in receipt of state pension, working or retired I believe.

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Sorry I meant those still paying into the SP for many years over the qualifying ones who aren’t at State Pension age.