| Topic: | Re:Pensions Question | |
| Posted by: | Joe Conneely | |
| Date/Time: | 07/07/13 16:32:00 |
| Embedded in this thread are some fascinating issues: 1. Should life expectancy drive pension age? Yes or the system becomes unworkable and a dangerous drag on national resources - the fact that there are now more over sixties than under sixteens in UK society is just the tip of the iceberg. 2. Should people work longer (and past pension age) as a matter of course? Given the average life expectancy of someone born in 1950 is moving towards 90 (male and female), I suspect this is already happening but a mix of people wanting to remain active and involved plus financially supplement their pension and saving arrangements is leading globally to people already working on average 2-3 years longer past retirement 3. Should they do the same job? Since it happened to me and I suspect I am not unique, a retirement age below that for national retirement may well become the new norm and force people to consider new jobs. I also suspect people will work less hours in starting to unwind down to final retirement. Some employers are actively targeting such older groups based on their better work attendance rates plus wider knowledge especially in certain retail chains. 4. So what are the problems? Well three I would suggest. The first is retiring before or at state defined age based on a recent Institute of Economic Affairs Report is actually bad for your health, so pushing for a work longer attitude being in your best interests. The second is that an older retirement age for state pensions in not being matched by people being healthier by the time they retire. There was a government sponsored report a few years ago ( I have lost the reference) which showed more people were reaching retirement in an unhealthy state which means they will be a bigger drag on society as the means to keep them alive longer now exists versus prior periods. The third is that more people living longer is not matched by greater personal financial saving and pension provision in that group. As with a lot in UK society over recent decades the rich have got richer and the poor will be poorer. The recent government moves to promote mandatory personal pensions is a key (and very belated) first step but will really only benefit the current younger generations (a third of whom it is projected will live to over 100 years old and will be in dire need of it!). |