Aged 40? Expect to work till you're 70

People aged 42 or younger now shouldn’t expect to receive their state pension before they reach the age of 70 and must save harder now or suffer later, experts warned after the Office for National Statistics (ONS) reported rising life expectancy.

Longer lives mean lower annuity yields - the guaranteed income for life most private sector pensions now rely on - and you would need to save nearly £206,000 to buy annuity income equal to the current minimum wage.

downlow: I am 35… by the time I get to retire, any number of governments (tory or labour) will have seen my private pension pot as an 'immoral' saving to be taxed at will… god forbid those who work hard to have a better life, that they live better than those without aspiration. We're all equal in this backward socialist UK.

sick_of_labour: Personally I expect by the time I reach retirement we'll be living in a Logan's Run type society where I can look forward to being euthanised and turned into Solent Green. Political elites excluded of course.

cashboy: The government will be promoting euthanasia on the grounds that it in sociably unacceptable to be a burden on society. The younger generation will be the politicians and voters for this as they see the tax they pay being used for the old and their inheritance being used for Care Homes. You will actually feel relieved to take the euthanasia than live in this society.

rajaal: Oh! of course

numpty: Why don't we follow the Iceland model. Arrests and re elections. Global economy my arse.

Potato: If the government wasn't stealing every penny it could from us, to waste on wind farms, overseas aid, benefits for the idle, £1m houses on housing benefit… etc, then we would be able to save a few quid.   Get off our backs and then maybe we could look after ourselves.  

morgan: Of course if you're under 40 (and work) you'll have to pay the tax cover all those who will get their pensions. You will also probably have to pay 8x your income for a family home to prop up the banks. Then there's the matter of that £50,000 student debt. Oh, and don't forget to put at least £250,000 into a pension, or face old age in abject poverty. Good luck

maryann27: I am sick of all of this govt inspired bullshit about this country not being able to keep it`s own citizens.  People have to PAY for years to receive the state pension (used to be forty something now it is 30 years), I will quite happily have my forty years worth of contribtions back without interest, if the govt begrudge us so much  Dave Dave???

John Gibson: Exactly. The numbers no longer stack up. And because the seveere social consequences of mass impoverishment in old age won't hit this country for 20 years or more, no one is going to do anything about it until it happens, at which point it will be almost impossible to resolve.

wuffothewonderdog: We are lectured by senior civil servants and local government CEOs on hefty six-figure salaries with comensurate pensions, who have gold-plated, gravy-train pensions. Bromley Council pension fund is £70million short. I say restrict pensions for politicians, civil servants and LGOs to a level appropriate for a maximum salary of £100K. They've had enough already and have been cutting services for ratepayers for years, so what's sauce for the goose is sauce for the gander.

al_harris: And don't forget that you'll also be paying off the debts politicians have accrued in buying the votes of your parents and grandparents - per taxpayer, currently around £38,000 for the headline debt (rising at £4,500 for each of the next few years) plus around £90,000 for unfunded liabilities (such as State pensions where governments have spent the money they got in NI rather than put it aside to pay those pensions).

iancrompton: People in the private sector are going to have to work till they are 80 to pay for the public sector to retire at 60.

sekunder: Yeah you bunch of mugs, not only that but all the profits you earn for your organisations will be concentrated into your executive boards pockets. Ha ha.

meemoe: At the moment, the normal retirment age in the public sector is 65. From 2014 this rises to whatever the employees state pension age is. Employer contributions to public sector pensions are less than Tesco make to their employee pension scheme.

englander: "Employer contributions to public sector pensions are less than Tesco make to their employee pension scheme." About 25% of council tax is spent on pensions for former council employees.  I am damn sure that Tesco don't spend 25% of their GP on pensions.

RetiredTaxman:  Yes, the employers' contribution is often expressed as a percentage of the total yield of Council Tax, setting it at around £6 billion. The majority of Local Authority expenditure is however financed by the general taxpayer via central grant and as a percentage of total expenditure it falls hugely. I haven't checked but there seems to be no reason to question the original posting.

meemoe: Wrong. That's a taxdodgers alliance figure based on the assumption that a councils only income is council tax, a councils only expenditure is wages, and that all employees are in the pension scheme. None of these assumptions are true. Make some more reasonable assumptions and less than 5% of council tax goes towards pensions

roman_column: These are matters of concern only for those working in the private sector, the public sector workers continue to have final salary pension schemes that the rest of us can only dream of. Gordon Brown and the Labour party destroyed the private sector's pensions schemes to subsidize the pensions of those in the public sector. Why this is not a matter of national strife can only be explained by the BBC controlling the agenda.

Richard Braby: private sectors workers can create unions and fight for better conditions too if they so wish, so stop moaning.

max1234:   OMG!!!! You're joking right?

timebandit: Only a public employee could come out with something like this, so you think that union membership could somehow "force " employers to award final salary pensions, which are paid for by who exactly? The public sector sequestrates by law money from the private sector (it's called taxation), they could not afford to pay for final salary pensions any other way.

hj777: and if this means that their employer becomes uncompetitive against overseas competition? Not a problem for the public sector, I know.

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