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Alignment of retirement ages

Discussion in 'Retirement' started by Prim, Jan 16, 2019.

  1. Prim

    Prim Occasional commenter

    Been chatting to my financial adviser who suggested that we may see an increase in the retirement age from 55 to 58. Does anyone have any further information regarding this? Just wondering how this would affect our NPA of60 on the final salary scheme?


  2. lindenlea

    lindenlea Star commenter

    It sounds just like speculation to me. If the age you could take your pension early, moved, would it be necessary to change the age at which you can take your full Teacher's Pension. I can't see the benefit of moving from 55 to 58. Would it save TP any money? I thought the reduction in benefit for going early covered that.
  3. Prim

    Prim Occasional commenter

    He seems to think there is a strong consensus that there should be a 10 year gap between this and the state pension age that is moving to 68 thus 58 for TP and other pensions. We were discussing AVCs and SIPPS and using these to fund the 5 years between 55 and 60 so there is no ARB on my TP.
  4. lindenlea

    lindenlea Star commenter

    Really? I think your guess is as good as his.
    I'm not keen on financial advisers. Plan to work for as long as poss. - out of teaching if necessary, and pay as much into your TP as you can afford. Its the best investment around. Also, marrying someone in a good scheme works well too. :).
    Someone will be along who has an informed opinion soon, but remember, it is only an opinion. Crystal balls are thin on the ground.
    Prim likes this.
  5. Prim

    Prim Occasional commenter

    Just found this on the TP website:
    The earliest retirement benefits can be paid is age 55, unless you’re granted ill health benefits. Further information about ill health benefits can be found in our factsheet Ill health. Please note that the minimum pension age of 55 is set by the Government who have stated that they intend to raise it to 57 in 2028, and then keep it ten years below the State Pension Age.
    eljefeb90 likes this.
  6. lindenlea

    lindenlea Star commenter

    Well there you go!
    See, your research was as good, actually better, than his suggestion. Advisers - who needs them?
    Prim and Gainingcontrol like this.
  7. Gainingcontrol

    Gainingcontrol New commenter

    An independent financial advisor is an oxymoron, and sometimes just a m*r*n!
  8. Prim

    Prim Occasional commenter

    Although if he hadn't have mentioned it I wouldn't have known :)
  9. heldon

    heldon Occasional commenter

    This hasn't been written into law yet, not to say it might not happen.
  10. FrankWolley

    FrankWolley Star commenter

    When (if) this happens, expect a spike in the number of teachers aged 55 or 56 who go on long term sick... ;)
  11. PeterQuint

    PeterQuint Lead commenter

    If the age is changed it’ll be by the government for political reasons.

    I can think of no reason why a financial adviser would have any more of a clue as to what the government (whoever that is) will be doing in a few years time than any of us.
  12. TheUmpire

    TheUmpire New commenter

    Ultimately its down to a combination of demographics and government finances. With an ageing population and pressure on government spending there will always be a need to review retirement ages. When life expectancy was lower there was less to pay out of the pension pot. Its very different today and the actuaries are busy recommending new retirement ages for us all!

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