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What are the downsides and drawbacks of retirement?

Discussion in 'Retirement' started by Startedin82, Aug 13, 2017.

  1. Startedin82

    Startedin82 Established commenter

    Thanks everyone for your considered responses and brilliant advice.

    Found this trawling the web;


    It's American - to save you having to read it let me summarise. The blogger suggests 3 drawbacks to retirement

    1 Boredom - you've got to have things to do whether it be sport, hobbies, travel, family and friends - or more probably all of these. You can't just sit around the house (unless that's what you want to do :))

    2 Personal interaction - as stated above in this thread some people miss mixing with work colleagues of different ages.

    3 Financial insecurity - this shouldn't be a problem for teachers here because - assuming you have the years in - it's a good pension

    I assume that the secret to a happy and fulfilling retirement is to have strategies to combat 1 and 2 and if 3 is a problem get some part time work!
  2. lizziescat

    lizziescat Star commenter

    I will echo marlins post about the expectations of being available for others. Even without parents or children to look after, there was overt and subtle requests and expectations to get Involved with X or join Y, or help out with Z. I made a pact with myself that I would not commit to anything for 1year and if people asked me to take on something , I let them know of this pact. This made it easier to say no and for others to understand.
    I also started an MA 1month after retirement (yeh I know this goes against the no commitment but this was something I'd wanted to do for a while) and helped with the really insistent requests.
    dzil, Sundaytrekker and Startedin82 like this.
  3. impis

    impis New commenter

    I retired a year ago, aged 60. My state pension won't pay out for another 5 or 6 years. I have 41 qualifying years. Nevertheless, my state pension will be penalised by £30 per week unless I pay NI for these next 6 years. It is very unfair in my opinion, and had I known this before taking retirement, might not have decided to leave my job. The gov site states that you must pay in NI contributions for every week of a year to qualify for a full year's contribution. My teacher pension is very small, and its a struggle to manage, to be honest, but I don't really wish to be forced back into the workplace.
  4. catmother

    catmother Star commenter

    @impis,why do you have to pay NI if you've already got more than enough?
    Startedin82 likes this.
  5. eljefeb90

    eljefeb90 Senior commenter

    Retirement does not inevitably involve drooling in a catatonic state in front of 'Homes under the hammer'! There are honestly loads of jobs out there : employment rates are at an all-time high and there are lots of temporary/seasonal jobs to help you both supplement your income and get some social interaction. I do 7 or 8 casual/seasonal jobs and have joined my local U3A, which I would recommend to everyone. I joined the walking , reading and 'cake and culture' groups and also give Spanish lessons . I have met lots of very nice people who have all led interesting lives. You should set your own agenda. As others have said, there is the likelihood that family members will fill the time for you if you have an empty diary! The truth is that you will have more time to help out but, if they know you have a busy schedule, they will make fewer demands and appreciate it more when you do help. I spent 5 hours in my daughter's garden yesterday, hacking and manicuring it and am expecting a meal out. If I did nothing, I am sure I would have already been appointed as her official factotum!
    Startedin82 and emerald52 like this.
  6. impis

    impis New commenter

    I wondered that too = and asked the state pension people. This is their reply. If you understand it, you're a better person than I am!

    "To get the full rate of new State Pension a person with no contracting out National Insurance history will need 35 qualifying years of National Insurance contributions or credits under the new system. People who do not have 35 qualifying years when they reach State Pension age will get a pro-rata amount - provided they meet the minimum qualifying period requirement.

    Under the previous rules, to receive a full basic State Pension at State Pension age, you must pay, be treated as having paid or be credited with enough National Insurance contributions for 30 years during your working life.

    Under the new State Pension legislation, calculations will be made based on the individual's National Insurance record at that point. These calculations will compare the amount of State Pension an individual may get based on:
    . the old State Pension rules; and
    . the current state pension rules.
    In both instances a deduction will be made for periods the individual has been contracted out of the additional State Pension before 6 April 2016. Although the old State Pension rules calculation only has a deduction for anytime you were contracted out up to 5 April 1997, the current calculation will have a deduction for any time you are contracted out up to 5 April 2016. You may have been contracted out because you were in a certain type of workplace, personal or stakeholder pension. (Most Public Sector staff have a contracted out pension).

    The higher of these amounts will be the individual's starting amount for the new State Pension scheme.

    This deduction means that although you may have already worked for more than 35 years your state pension may not be at the maximum new State Pension. You may be able to get more State Pension by adding more qualifying years on your National Insurance record after 5 April 2016 (until you reach the full new State Pension amount or reach State Pension age - whichever is first). For each extra qualifying year gained after April 2016 you will get approximately £4.45 a week.

    The transitional arrangements ensure that those who meet the minimum qualifying period (10 qualifying years) will not get less State Pension under the new State Pension than they would have got under the old scheme, based on their National Insurance record as it stood at implementation of the new scheme (April 2016).

    Certain benefits such as Job Seekers, do give you National Insurance credits however you must be in receipt of the benefit for the full 52 weeks of the tax year in order to gain a qualifying year. For more information or advice about benefits, please contact Jobcentre Plus. Their telephone number is: 0800 055 6688. They are open Monday-Friday 8am-6pm.

    Your State Pension Statement is calculated up to the last year showing on your National Insurance (NI) record which is held and maintained by HM Revenue & Customs. If you have any queries with regards to your National Insurance record or would like the costs for making voluntary National Insurance payments you will need to contact them at:"

    As far as I'm concerned, I should get the full pension on 41 years - but not apparently according to the new rules. Its not just how many years - its also when those years were.
  7. catmother

    catmother Star commenter

    No idea what it all means!
    Startedin82 likes this.
  8. lizziescat

    lizziescat Star commenter

    My understanding is as follows.
    As a contracted out scheme, teachers (along with many others) paid lower NI rates and thus are eligible for a reduced pension. But this pension is exactly what I would have got under the old scheme anyway (having paid in for 38? years) so I haven't lost out at all.
    As 'contracting out' has been abolished, anyone paying NI now will be paying the 'full' rate and so will be accumulating the new pension amount each year (with any previous 'full rate' years credited to them as well).

    If, however, you are not working, it is not possible to accrue any such years, (as not paying NI) hence a voluntary scheme to pay NI contributions at the 'full' rate until reaching state pension age.

    Edit: this is my understanding based on various programmes and news reports and so should not be relied upon .
  9. applecrumblebumble

    applecrumblebumble Lead commenter

    I agree to what you are saying with regards to paying less NI contributions should result in less state pension but we were only paying 1.4% less than the full amount. The difference between £155 and £119 would be 30% and to get the old pension you would only have to work 30 years and you do not get any extra for paying more than 35 years. You cannot even pass your pension onto your next of kin, unless they have no pension at pensionable age. Sounds like the government have stacked a lot chips in their benefit.
    Startedin82 likes this.
  10. catmother

    catmother Star commenter

    Are you surprised?
    Startedin82 likes this.
  11. FrankWolley

    FrankWolley Star commenter

    I've yet to find any drawbacks or downsides...
  12. ljr

    ljr New commenter

    I loved my job, through teaching, management, assistant headship then back to teaching, then part time, and then, suddenly, I realised I wasn't loving it so much and I knew it was nearing time for me to go. I reduced and reduced my hours, so I was semi retired for quite a while and so retirement didn't come as a shock. I said "no" to any applicants for my time for two years then took on two voluntary roles that I thought would interest me - one of which is governor in my village school. I honestly haven't found any negatives to retirement - I love every day. Each day is different, I have time for friends, for exercise classes and walks (I am probably fitter now than I have been for years), my brain is active because of all the governors duties. I have time for long trips in the UK and abroad and my husband and I get to share quality time now.
    Re the extra NI payments - I'm really not sure it's worth it as so much of your teachers pension will be taken in tax anyway you might as well settle for a lower SP and keep more of your TP.
    plot71 and Startedin82 like this.
  13. lizziescat

    lizziescat Star commenter

    But I'm getting exactly what I signed up for and expected. Still cant see a problem with that. The rules haven't been changed for me.
    NI contributions pay more than just pensions. There are other employment benefits as well.
    plot71, Sundaytrekker and Startedin82 like this.
  14. catmother

    catmother Star commenter

    I had not thought of that angle but yes, you are perfectly right there. Another thing to consider.
    Startedin82 likes this.
  15. Sundaytrekker

    Sundaytrekker Star commenter

    But not really. In the example of an extra £36 a week, you will pay an extra £7.20 tax. Yes, this might shift between state and teachers pension but you will still be nearly £29 a week better off. That's over £100 a month. Who wouldn't want to be over £100 a month better off given the chance?

    You can do nothing and stay as you are under the old system. And I agree that is what you expected it to be. Or you can continue to contribute NI contributions from April 2016 till you reach state pension age either through working or voluntary contributions to increase your state pension.
    eljefeb90 likes this.
  16. catmother

    catmother Star commenter

    Very true.
    Sundaytrekker likes this.
  17. tarkus

    tarkus New commenter

    None. Next question.
    Startedin82 likes this.
  18. Alldone

    Alldone Senior commenter

    Drinking too much alcohol. Having time to go out more - meals, drinks in pubs, holidays etc, I found that the amount I was drinking was gradually going up. After our last holiday in Spain (drinking huge amounts of booze) I decided to cut back dramatically and am now 6 weeks without an alcoholic drink.
    Other than that, I love being retired.
  19. lindenlea

    lindenlea Star commenter

    Alldone, lizziescat and Startedin82 like this.
  20. Startedin82

    Startedin82 Established commenter

    Well done @Alldone. I believe that this is a common issue for retirees.
    Alldone and lizziescat like this.

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