[Politics] UK state pension age will soon need to rise to 71, say experts

[East Staffs Gull]

Those who have paid into National Insurance already have paid for their state pension.

If only that were the case. National Insurance contributions collected today are being used to pay today’s state pensions. Each generation is totally reliant on future National Insurance payments from subsequent generations.

 

[Bakero]

If only that were the case. National Insurance contributions collected today are being used to pay today’s state pensions. Each generation is totally reliant on future National Insurance payments from subsequent generations.

We're going to have to tax the bots that take our jobs till the bits squeak.

 

[BLOCK F]

Not disagreeing with all of what you say but my mum is 86 and lives in Ireland, the healthcare and social care system there is shite.

Part of the pensions problem in the UK is the cost of the triple lock, it's political suicide for any party to address it (old codgers are also voters after all), but it is not sustainable unless life expcectancy falls faster or government revenues rise.

This old codger of 75 can see no justification for keeping the triple-lock any longer. It is inequitable to do so.

 

[Mancgull]

The main issue is exactly the opposite; it's the fact that people are living longer the ever. Perhaps under 50s should all take up smoking now to ensure a short retirement.

The rise in Average life expectancy has now started to level off in the Uk.
The issue is that the Government aren’t prepared to scrap the triple lock, plus the lack of people working to age 66 means that there is a funding gap.
Politically it seems as if a rise to the State pension age is less of an issue than reducing the State pension in real terms.

 

[Mancgull]

Absolute swathes of people (in financial services anyway) retiring early must be hitting the tax take very significantly too……..able to do so because of half-decent pension schemes and ‘company restructuring’ leading to voluntary redundancy opportunities. Certainly from my experience Covid caused a huge amount of reflection and lifestyle choice thinking amongst my peer group - I know loads of people my age or thereabouts who have packed it in in the last 3-4 years, deciding to live off savings to bridge the gap between early retirement and reaching state pension age.

I’m in that boat although I’ve just decided at the age of 58 to reduce my working week to three days. I work for a smaller Financial Services firm that have the sense to offer part time working.
Good to get some flexibility and at least I retain some salary to top up drawing money from savings/ pension.
I know a lot of FS companies don’t offer part time work.

 

[dsr-burnley]

The proliferation of food banks in what is supposed to be one of the world's richest economies tells you all you need to know. So many people desperately trying, and failing, to keep their head above water.

No offence, but a lot of the discontent now is that people like yourself look at the number of food banks, compare it to what the young baby boomers had, and say "look how much poorer we are than then".

For the record, baby boomers have not always had it so good. My mother was a teacher, qualified 1953, so she taught baby boomer children. She had 50 in her first class, two to a desk, writing on slates because there wasn't enough paper. The children lived (mostly) in back to back terraces, which means there was one bedroom for the children and the parents slept downstairs. (Two bedrooms for the richer folks.) They might have a week holiday in Blackpool if they were lucky, but most didn't. No cars, no telephone, not all had wireless. It is simply false to decide that these children were richer than the current generation, simply because they didn't have food banks.

 

[Tom Hark Preston Park]

No offence, but a lot of the discontent now is that people like yourself look at the number of food banks, compare it to what the young baby boomers had, and say "look how much poorer we are than then".

For the record, baby boomers have not always had it so good. My mother was a teacher, qualified 1953, so she taught baby boomer children. She had 50 in her first class, two to a desk, writing on slates because there wasn't enough paper. The children lived (mostly) in back to back terraces, which means there was one bedroom for the children and the parents slept downstairs. (Two bedrooms for the richer folks.) They might have a week holiday in Blackpool if they were lucky, but most didn't. No cars, no telephone, not all had wireless. It is simply false to decide that these children were richer than the current generation, simply because they didn't have food banks.

Fair enough. Take another metric then. Why are more and more councils (including B&H council) on the point of going bankrupt on account of under-funding by central government? After a decade or more or austerity measures introduced due to the obscene greed and stupidity of the financial sector in 2008 it's still the ordinary people and their local representives having their melons squeezed. There not a lot left to squeeze. Where does it end other than sweeping the Tories out of power and keeping them out of power for a generation or more?

 

[dsr-burnley]

Fair enough. Take another metric then. Why are more and more councils (including B&H council) on the point of going bankrupt on account of under-funding by central government? After a decade or more or austerity measures introduced due to the obscene greed and stupidity of the financial sector in 2008 it's still the ordinary people and their local representives having their melons squeezed. There not a lot left to squeeze. Where does it end other than sweeping the Tories out of power and keeping them out of power for a generation or more?

I'm sure the Tories will be swept out of power, but only to be replaced with a similar high-tax, high-spending government. Nothing will change.

Ironically, one of the reasons councils are going bust is because of the hugely generous inflation-proofed final salary pensions that (until recently at least) they were offering. There is an example of baby boomers who really have benefitted from the wealth that their generation helped to create.

 

[dejavuatbtn]

The pay divide between senior management and workers has grown so significantly in the past five decades that it will never recover to a sensible equilibrium.
Some stronger unions have been successful in getting their workers good deals over the years leaving other workers behind.
Denationalisation of utilities and transport has meant that profits are not reinvested and only the shareholders, who tend to be the better off, benefit.
There are plenty of reasons for the current mess the government have got us into . Let’s blame the elderly.

 

[Questions]

It depends on the job, doesn't it?

A desk job with flexitime and remote working? Sure, you could work to 70 and beyond. But a scaffolder or primary school teacher? Bit trickier.

4 years to my state pension and I can hardly walk today.
Mind you that’s down to over celebrating after the match tbf.

 

[A mex eyecan]

Not sure about that.

They can't stop state pension without ditching National Insurance, and refunding all National Insurance already paid.

Those who have paid into National Insurance already have paid for their state pension.

problem is worse than that. Those of us who have paid NI for the last 50 odd years were actually paying for those already retired. It’s the 30 somethings now who are due to be paying ours, then rinse and repeat

 

[vegster]

4 years to my state pension and I can hardly walk today.
Mind you that’s down to over celebrating after the match tbf.

Time to switch from Halloucegenic to anti Inflammatory maybe ?

 

[CheeseRolls]

A quick Google shows that the top 10% of taxpayers paid 60% of all income tax in 2023/24, up from 35% in 1978/79. The share of income tax revenue contributed by the top 1% of taxpayers rose from11% in 1978/79 to 29% in 2023/24.
That is a fair old chunk.

I think this is a valid argument for not penalising high earners, who are paying their share, but suspect there is still a significant haul, which can come from widening the tax net, without necessarily making the UK an uncompetitive place to do business. It would be helpful to know who owns all the land in this country for example. I suspect the top 1% would drop much further down the list if someone shone a light into a few shady corners.

 

[Mellor 3 Ward 4]

Ironically, one of the reasons councils are going bust is because of the hugely generous inflation-proofed final salary pensions that (until recently at least) they were offering.

This is VERY true.

 

[Nobby Cybergoat]

The rise in Average life expectancy has now started to level off in the Uk.

Another reason to vote tory right there. They are the only one taking positive action to sort out this pension crisis

 

[Nobby Cybergoat]

...and I also feel the enormous benefit of working uninterrupted in several high pressure IT roles from March 1980 through to January 2017, not a single day unemployed.... not claiming a penny in dole/benefits... Paying through the nose tax, NI, Pension and double figure MTG rates ... and I still pay tax on my very part time bar job until I get my state pension at 67 in 6 years time..... yes, I am a privileged Boomer.

Now that is a phrase you don't hear very often

 

[A mex eyecan]

Now that is a phrase you don't hear very often

and i don’t think it was meant in the context you’ve taken it

 

[beorhthelm]

Fair enough. Take another metric then. Why are more and more councils (including B&H council) on the point of going bankrupt on account of under-funding by central government? After a decade or more or austerity measures introduced due to the obscene greed and stupidity of the financial sector in 2008 it's still the ordinary people and their local representives having their melons squeezed. There not a lot left to squeeze. Where does it end other than sweeping the Tories out of power and keeping them out of power for a generation or more?

it's a good question, why have councils run up large debts? central government funding is supposed to be based off formulas for statutory services provided at local level and total funding has been increasing since 2016. have the services changed without enough budget? have range of services been added off budget? have the size of services increased without proper budget (i.e. enlarged populations). is it the councils are expected to raise council tax but dont because locally unpopular. or just not keeping pace with inflation. does council tax and central settlement have to raise by inflation every year just to keep things level?

 

[Gwylan]

Doesn't this imply that there'll be jobs for those in their 60s. I'm just about surviving as self-employed, after I was made redundant at 58, but would rather be working. However, the chances of someone over 60 getting any sort of job are negligible. As more and more companies look to reduce to their staff, it will be the older workers who go. So, that 71 is a rather illusionary figure.

 

[BBassic]

I'm 38 and have long been resigned to the idea of pretty much working until I die. Good to see it's on track.