Will We Ever Be Able To Retire?

A report recently suggested that the state pension age will need to rise in order to keep the scheme going. Today lets look at what is going on.
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[@caparn100]

7:36, you have forgotten a very important factor - INFLATION

[@DamienTalksMoney]

Yes, but inflation would also factor into the contribution amount from wages; 8% of wages today will be a lot less than 8% of wages in 30 years in nominal terms. I held the contribution at £200 to illustrate a worst-case scenario. In reality, this amount would likely increase over time in line with inflation (assuming wages keep up with inflation) But even if they didn't i think it is fair to assume in 30 years people will be getting paid more per hour than they are today such is the effect of inflation. I will pin this comment as a few people are making the same point.

[@caparn100]

@@DamienTalksMoney But you have assumed growth at 7% above inflation. That simply does not happen.

[@Boo-pv4hn]

@@DamienTalksMoneythis is why ideally we would bring the amount down to be inline with other benefits

[@davidcross8028]

Inflation is man-made.

[@Whalewraith]

@@caparn100 also a lot of these companies aren't doing there job. By the time they've creamed off charges funds are not producing any growth at all.

[@adoremus4014]

I once watched a video on centenarians speaking of the benefits of living such a long life. One man, aged 105, said "It gives me great joy that I have got my own back on the thieving government by drawing my state pension for 40 years"!! Ha Ha!

[@davidcross8028]

The problem with that is that your State Pension which I myself now receive, is paid through the taxes of people still working. The government has no money of its own, it is all taxpayer funded.

[@adoremus4014]

​@@davidcross8028 No problem claiming state pension for 40 years as many people pay into the state pension their whole working life and claim nothing, either dying shortly before retirement age or only claim for a few years. Go centenarians, enjoy retirement!😄

[@Whalewraith]

@@davidcross8028 which is why he called it a ponzi scheme. Money for those at the top but will completely collapse if more people don't join at the bottom. I'm convinced this is the real reason our government is so keen on migration.

[@davidcross8028]

Well think about it; it would be the easiest thing to stop them coming in rubber boats. The fact that they DO NOT stop them must mean they want them here. And if they want them here, has to be a reason. Cui Bono (who benefits)@@Whalewraith

[@davidcross8028]

I do agree. I worked from 16 until 66, I am 68 in July. But what I mean is that it isn't the government that pays it, it's the present day taxpayers who do that. The government just decide who - when - and how much.?@@adoremus4014

[@JupiterThunder]

So now we will not even get the pension, and with the NHS is broken, and the education system is broken, what exactly are we paying taxes for?

[@patrickT7969]

5 million a day for migrant hotels?

[@muscleandmath2910]

Reminds me of a certain song by three days grace...

[@sl0w_racer]

For everybody else

[@joshclayg]

Our replacements.

[@TheLockSmith1800]

@@muscleandmath2910RIOT

[@Witnessmoo]

We have 9 million people who could work not working and the rest of us who work getting taxed to death… and apparently will be till we are dead. wtf happened to this country?

[@JynxedKoma]

Greedy corps and politicians.

[@Autonomous1969]

When you give the non-working so much in benefits that they are better off not working who's going to want to work.

[@johnporcella2375]

​@@JynxedKomaEh?

[@wehrine]

The prospect of retirement brings forth concerns about financial preparedness and the ability to maintain a comfortable lifestyle. Factors such as insufficient savings, uncertain market conditions, and increasing life expectancy contribute to the uncertainty. Seeking guidance from a financial advisor becomes pivotal in addressing these challenges and crafting a retirement plan that aligns with your goals.

[@V.stones]

Indeed. Many individuals grapple with the question, As life expectancy rises, the fear of outliving savings looms large. A financial advisor can conduct a thorough analysis of your current financial situation, help you set realistic retirement goals, and formulate a strategy to build and preserve wealth, providing reassurance about your retirement prospects.

[@mariadrukker2557]

I can relate to these concerns. As someone who wondered about the feasibility of retirement, engaging a financial advisor was a game-changer. They conducted a comprehensive review of my assets, suggested adjustments to my savings strategy, and provided a roadmap for a secure retirement. The peace of mind gained through their guidance is invaluable.

[@Jonesmatsunaga]

Your experience resonates with my current uncertainties about retirement. Could you share more about your advisor and how they assisted you in addressing these challenges?

[@Jonesmatsunaga]

​@mariadrukker2557 if you can?

[@mariadrukker2557]

My advisor's expertise in retirement planning, understanding of market dynamics, and personalized approach helped me align my financial goals with a realistic retirement timeline. His guidance provided clarity on potential challenges and optimized my path to a worry-free retirement.

[@user-fr5co4me8o]

Literally just looked at my pensions after watching this, saw that one has been losing money and switched immediately. Sometimes we just need that reminder! Keep up the great vids.

[@SimonMester]

It's very simple, and has been going on for more than a decade. We are in late stage capitalism. Corporations own everything, and governments are underfunded. So what happens is they keep moving the pension age up, and health coverage down. So the average life expectancy matches the pension age. This means governments get to keep collecting a large portion of people's wages, while not actually providing any services for it. A levy on the people.

[@tonymcfeisty2478]

spot on, theN they get to give that levy to their rich backers through various nefarious means

[@MM-ev1fg]

It’s not even just about life expectancy. It’s health span has decreased with a higher population. So there’s more unhealthy older people on top of other reasons. Lots of costs.

[@leemagaming696]

@@MM-ev1fgi think it is my friend if our life expectancy is lower and we are worse off less children less population less people more abilities for them to buy more land and profit off inflating prices in the future once they own it all they can either make the population increase so they have a slave work force or lower it once they get their self repairing androids able to do all the tasks needed of them wouldnt surprise me if this is why alot of the tech industry is moving in that direction

[@lilyflower91]

God you're so brainwashed. It's socialist aspects such as giving everyone who comes to this country benefits. Giving people free money to sit on their arse and pop out kids. Not to mention the absolute crap the NHS wastes it's money on, treating medical tourists. Stretching all public services to the absolute brink.

[@TwoBassed]

@@tonymcfeisty2478- and the rest goes into their pockets!

[@warrenb243]

If anyone is relying on state pension for retirement you haven’t been listening to Damien carefully enough for the last 3 years

[@DamienTalksMoney]

This!

[@BB-jk1le]

Alot of people's private pensions are tied to the same age threshold though

[@keithmutamba1395]

I am listening now

[@KuwaharaBMXRider]

Early retirement (50s ) is stupid . You should work as long as you can. Not only for financial reasons but keeping yourself busy and active and involved is Better for your health

[@warrenb243]

@@KuwaharaBMXRider travel, spend time with grandchildren, focus on health in later life. No offence but this sounds like someone who can’t afford to retire

[@danburke6568]

In the UK we are dying soon then the last generation. Poor health care. Poor standard of living. So the government is removing their pension for the current generation. It's crazy.

[@CRAZYCR1T1C]

Let’s face it. The UK is screwed by all the free loading that is going on. We work hard to contribute into a system where someone that does nothing all their life can still get the same (or more) from the system.

[@TheNobbynoonar]

Those that work in normal jobs, paying a large percentage of their salary in taxes are the ones keeping the system going. They are the ones that are being screwed over the most. It’s the very rich (with their tax havens) and the poor (on benefits) who are the biggest drain on society.

[@TwoBassed]

@@TheNobbynoonar- Except when you lose that job those benefits are what keep a roof over your head and food (though not very much) in your belly! It’s what some of your taxation is for!

[@seabreeze4559]

pensioners are the biggest drain @@TheNobbynoonar

[@RosieHarp]

@@TheNobbynoonar Yes people nearing pension age. The ones who had a strong work ethic and contributed to the system for 40+ years from the 70's onwards. They're the ones that laid the foundations now the 35+ year old generation need to pick up the reins. I'm not sure it'll happen

[@enochpowell8607]

Our government is too busy funding illegal immigrants and other countries wars instead of looking after it's own people.

[@converseroo101]

My working assumption is by the time I’m at state pension age (whatever it will be by then) they will make it completely means tested and I won’t receive it

[@Swipe650]

If it's anything like the Aussie means tested state pension system, you'll still get a min of 50% of it

[@rodpanhard]

This is something similar to the conclusion I came to years ago, I'm working to the assumption there won't be a state pension when I retire so I'm tucking away gold sovereigns for my retirement. I'm working towards covering a £30k salary over 30 years to be able to safely retire. I don't need to keep up with the Jonses so £30k a year is ample. If there is still a Pension then thats's a bonus.

[@paarker]

Good idea. They punish people who are productive and work. Then they wonder why productivity is flat. What incentive is there for working hard in the UK. The only one reason : is to leave.

[@kw8757]

@@paarker You're right, and the punishment will only get worse under a Labour government. People on PAYE with private or work place pensions are easy pickings for the socialist scum, just ask Gordon Brown.

[@bobjames6622]

@@rodpanhard Except when CBDC comes in ALL cash, and ALL metal holdings will be null and void. Think that won't happen? Look into history and then think again. If you planning for 30 years down the road, then I'm guessing you're quite young. By the time you reach that age all of your assumptions will have blown away like farts in the wind. I'm 57, and I know that I won't ever get any state pension, despite having paid into it for 40 years. And buying metal is a waste of time and money, as you will never be allowed to actually own it.

[@garryparnell7727]

What they dont look at is people who have a physical demanding job ,Im 47 and my body is giving up now ,Virtigo, Arthritis in shoulders and lower back problems. Ill be lucky to keep going for another 10 yrs we dont all work indoors infront of a screen.

[@AUDIS3ROB]

Agreed, I’m 44 and work in an unheated garage, no way I’ll be able to do this at 55+

[@nickbrown6457]

Completely sympathise with you. I'm late 50's and do work indoors and in-front of a screen all day, and I struggle with movement, stairs, and other stuff. I can't imagine how hard it would be to have a physical job at my age. I only cope with full time work because I have a non-physical job.

[@dallassukerkin6878]

I was thinking exactly the same thing. I'm one of those desk jockeys but even I am starting to struggle with eyesight and issues with my hands as well as the cognitive slowdown that comes with age. How they expect folk to be productively employed at that age shows that they really would rather we all just die once we stop making efficient contributions to GDP. The only defence is for people to really focus on building their personal pensions but *so* many jobs are paid so poorly that even starting as soon as you can might not be enough.

[@heyyitskarlos]

Yep, I'm a joiner and also work in an unheated workshop. I'm 36, I've already had carpal tunnel surgery on my strong hand, get knee, back and most predominantly atm elbow problems, and I've got another 35+ years? I don't think so somehow

[@kinggeoffrey3801]

Yep in my 40s, not a chance I have another 30 years of doing maintenance at a quarry.

[@johnboy1810]

Ideally they'd like you to retire, have a day or so to enjoy everything and then kick the bucket.

[@DamienTalksMoney]

Exactly this 🤣

[@jasonmcclatchie6877]

@@Mrtickleberries And it has a double whammy of freeing up housing stock!

[@MisterNumber6]

That's what the co-vid boosters and flu jabs are for lol

[@PeterHitchmanYT]

Exactly what was happening after the Second World war. The rules around state pension contributions and the age limits changed because a lot of people died before they could access the money, which was seen to be unfair. The problem is things have changed a lot but successive Governments have failed to respond, until it has become urgent.

[@bobjames6622]

"Ideally they'd like you to retire, have a day or so to enjoy everything and then kick the bucket." I think that what you ACTUALLY meant to say was "Ideally they'd like you to retire, and then kick the bucket."

[@chelseaacidcasual2825]

State pension is not a benefit…….35 years of my contributions says so……and I want it ASAP.

[@riveness]

It is a benefit as your contributions paid for those that came before you, not for you. A 20 year old is paying your pension. Tory after tory government raided and sold off the pension fund.

[@jjefferyworboys8138]

Today ASAP is age 66. If you have a decent works or private pension you can retire so much earlier. For me that was age 50.

[@calum6590]

Not sure if real or a joke. Did you not listen to him? Rewatch the first few minutes perhaps. Your NI contributions are gone. They are used up paying for the current generations (all the boomers etc) state pension benefit. I also want state pension benefit before I die and wish your view was correct but sadly the money just isn't there waiting for you. It's long gone.

[@riveness]

Tories sold off or delved into the funder over the decades so that our pensions pay for the current generation, yours for those in their 80s. It is a benefit.

[@seabreeze4559]

it's a PONZI

[@andrewappleyard796]

Not a chance. I'm working to 67, nevermind 71 . . . I've worked since I was 16 , I'm now 37 , ill work until 60 , after that my mortgage will be paid and I'll sit on doll , stuff it !

[@LilySaintSin]

If you mean universal credit, they won't just let you sit there. They'll push you took and sanction your benefit if you don't.

[@duplicitouskendoll9402]

Same here. I'm 36 and refuse to work past 60. Life expectancy assumes you live a perfectly healthy life and also get lucky with cancer etc. I think I'd do well to see 75! Pay off mortgage, put my home into a trust for my kids so the state can't touch it for care costs, retire at 60, spend my money whilst I can, then let the state deal with me when I'm skint, arthritic, deaf and riddled with dementia! No way I'm working past 60 when my parent's generation all got to retire at 55!

[@andrewappleyard796]

@@duplicitouskendoll9402 100% agreed pal 👍!

[@Autonomous1969]

@@LilySaintSin So why then are there people, I know, that haven't worked a day in their lives and now they are in their 40s and 50s?

[@SevenEllen]

Me too. I'm not working any later than 63 when I qualify for the full state pension. I'm tempted to buy a few years before April 2025 so I'll retire at 60, but not before I learn more about investing. It's scaring me less than it used to thanks to Damien's videos, and if it turns out more lucrative than bank interest, it's worth it in the long run. I'm never one for betting my life's savings on anything, that's just foolish and dangerous, but I wouldn't mind putting in £100 and seeing what happens to it in five years.

[@keithmutamba1395]

You are truly fantastic 26 millennial here, on £31,000 putting 12% in my pension pot of £6.7k increasing awareness of pensions for young unsuspecting adults like me makes all the difference God bless

[@antonioferrante]

Do you have a private pension?

[@keithmutamba1395]

@@antonioferrante this is my work pension. I have a Lisa because I want to buy a house in 6 years. Currently saving emergency money. I can save £600 a month, one I save enough I need to add £2k to the Lisa. Realistically I don’t think I could contribute much to a private pension

[@batsteve1942]

Similar situation here, but a little older than 26 😅 Recently upped my contributions to 10% (plus 3% from my employer) because I refuse to retire in my 70s. Aiming for 65 but I’d love to drop this closer to 60.

[@dees3179]

It’s also about stopping working in time to spend time with loved ones before they die as well. My loved ones are older than me and I am in poor health although I’m in my forties. So it pointless me struggling on working for as long as possible for the sake of a pension I’ll never get to receive. Everyone I love will be dead and I’ll be either dead or too ill to do anything anyway. And if I live a little longer and I’m broke then I’m not going to regret having spent the time with those I love. I just have to find the courage to stop working before it’s too late. Very hard to do while I’ve still got a mortgage noose round my neck though.

[@rusl12]

The explanation of the state pension being a Ponzi scheme has kind of blown my mind. It’s so true

[@samantha-jaynechapman2950]

I heard that in my 20's, almost 20 years ago. made me sign up to the works pension scheme asap, i didnt delay.

[@DamienTalksMoney]

I had another video made, but the Oscars (award show) blocked it. So, I am currently getting a bit creative with it and will drop that next week. I just wish to stress again that the advice to raise the pension age to 71 is from an independent think tank and not the government.

[@horacebury]

Have to say I’d like to see a video (by you) on the arguments around the pension plan you (from the think tank) propose. It’s a bloody good idea and I think everyone having children should be required to open a pension in the first year of their child’s life for them. Perhaps an incentive would be to match whatever the parents pay in as an initial lump sum, up to a limit and then keep matching it (to that limit) until the age of 18.

[@kristiangustafson4130]

@@horacebury we sort of had this with the Child Trust Funds the Cameron government brought in around 2005--and then stopped in 2011. They were hoping it would cause everyone to save as the government did like a big contribution. But just middle class & up bought them. My eldest has one, and its now sitting with an impressive balance.

[@stephengraham9940]

Damo I would defo be up for a few pints sometime. I’ve loads of interesting financial points and questions for discussions.

[@iansimpson936]

@@stephengraham9940 the community should catch-up once a year. A bit like what Warren Buffett does. I would love to tell Damo how much he is helping ordinary people save for their future.

[@robgear4362]

​​@@kristiangustafson4130I would be amazed if Cameron set that idea up , he didn't become PM for a further 5 years. I think you mean the Blair/Brown government? Cameron and Osbourne cancelled it to divert money to the superich instead

[@CeeRTee]

Here we go, people who will work for a fraction of thier lives and retire on public sector pensions will decide the rest of us need to work until we are dead to pay for it.

[@MrWho007]

NHS retirement age is the same as state pension age. Given the NHS is the largest public sector employer, you're talking out of your ass

[@CeeRTee]

@@MrWho007 Who in the NHS is deciding the retirement age for the entire nation? The comment was aimed at politicians making negative decisions that never effect them.

[@RosieHarp]

A pension isn't a benefit, we've paid NI for 40 years, some longer

[@TwoBassed]

Amen!

[@lewismcdonald9691]

State pension is one of the benefits for paying NI.

[@calum6590]

Ugh one of them

[@user-dj9nl2vs9x]

@@calum6590 Yes, one of them. Healthicare being the other (NHS)

[@RosieHarp]

@@user-dj9nl2vs9x Anyone starting a sentence with ugh suggests they are around 12. So based on that, YES I am 'one of them'. Somebody who has worked over 40 years full time to pay for my retirement when it comes. Enjoy your turn 😆😆😆😆

[@benking9593]

The £5k idea is brilliant. So brilliant, that our Gov would probably throw it straight in the bin!

[@philthompson2239]

it is, but as soon as the pot got big enough, some politician would raid it.

[@dallassukerkin6878]

@@philthompson2239 Aye that is what has happened before. More obviously in the USA, but also here, the accumulated contributions have either been mismanaged or just spent on other things than pensions.

[@TomARowly]

@@philthompson2239 That's quite literally how Defined Contribution schemes *don't* work. The pot is the property of the individual. There's nothing that the government can "raid." I think it's a fantastic idea.

[@mc1996]

What if the investment goes wrong and the 5K turns into 2 or 1K? Or zero? Should the government give a refund? It's people's future, not that easy unfortunately. Also, it would be very hard to select the fund of investment, and the gains would not be equal to every individual. How would that be fair?

[@dallassukerkin6878]

@@mc1996 It's easy to airily say "It won't go wrong", so I shall not say that. However, if things collapse to the point that the stock market crashes and stays crashed then we will have a lot more to worry about than whether we have a pension or not. At the end of the day *all* private pensions function this way and, to a lesser extent, so should all state pensions - after all, if our contributions were invested in government bonds then the returns would not be spectacular but they would be plenty good enough when you are dealing with a thirty year horizon.

[@danteburritar2822]

This might be the most important video on youtube for the UK population. I think it is criminal that our politicians do not think and act long-term akin to Damien’s pension plan. I had these exact same thoiught as Damien when I first read up on finance starting wth the Motley Fool book (years ago) and others since, that advocate low cost index trackers. Seeing as the government won’t do this for your children as it will not line their own personal pockets, I urge all parents to do their version of this for them. If you an afford it, £2880 per annum, £240 per month, while they are a child will sort their retirement completely. No matter your budget, every £1 you put away for them is £88 for them in the future!

[@joefarr3304]

Politicians don't act long term because they don't expect to be in government long term. Where is the incentive to make hard choices that will upset the electorate if you know you are up for re-election in a few years. Much better to be "seen" to be giving the people what they want then blame the opposition party when it's their turn for messing everything up. The only part of government that persists irrespective of who's apparently in charge, is the civil service. Decisions that affect the population years, of tens of years into the future should be left to them or another dedicated body.

[@PeterHD-hj6bi]

Yes, if possible put the Child Benefit Allowance into a Global index tracker for the kids. It will give them a great start in life if they learn the value of investing from watching their funds grow

[@seabreeze4559]

should be compulsory

[@everythingtechnew7400]

Another problem much bigger than pensions is looming its called property rent. Currently up until now vast amounts of retirees end up owning their own home so no need for help with rent. If the current trends keep up the next generations of retirees will be renters with the privileged few owning their own homes. Rents are now becoming unaffordable by people in work on what historically were classed as well paid. Why would a generation of private renters whose bulk of their pay is going into pockets of private landlords to fund their retirement & what little they make scrape together to pay into a private pension just to see that continue to go into their landlords pockets. With no private pensions you will receive help from the government & unless we’re going to see 70 years olds en masse homeless & sleeping rough the state will also need to pay their rent.

[@backjarton01]

I think a vast majority of people will happily tell you their retirement plan is a fatal motorcycle crash aged 58.

[@sl0w_racer]

This is my big fear. The government will then raid the pensions of people who did the right thing, buy a house, save and invest etc to pay for people who did not.

[@backjarton01]

@@sl0w_racer Totslly damning those who could not afford to buy a house…

[@sl0w_racer]

@backjarton01 I couldn't afford to buy a house until recently. Just stopped spending everything and saving everything. Took 15yrs but we did it and we didn't have a hand out either.

[@everythingtechnew7400]

@@sl0w_racer Congrats on your new home it’s the best thing you could ever do.

[@sexysilversurfer]

The way the NHS is going downhill only the rich will be living into old age.

[@TwoBassed]

That’s the plan. We work to pay for them to keep their lifestyle!

[@neilanderton218]

theyve already started doing away with retirement. its called universal credit... you will work if you are deemed fit to work, until the day you die, if you are unfit you will get PIP

[@markevans7244]

I'm 41 and not even thinking about the state pension anymore. It'll be a nice cherry on the top and nothing else.

[@BF1GUN]

Couldn't agree more. My friend has a decent independent pension and uses the UK Government pension to pay his BUPA subscription!

[@davidpearson243]

We (Mrs and myself) have retired at 55 and 56 we have paid pensions since we were 18 (DB and DC pensions) The children have finished university and in good careers we paid the mortgage paid off We could manage quite comfortably on our pensions and savings without the state pension we haven’t inherited anything either (that’s going to the children )

[@paarker]

@@davidpearson243 public sector?

[@markevans7244]

@@davidpearson243 👍

[@Kaizen917]

Best way to look at it - prepare for a proper rainy day as much as possible (without sacrificing much when younger) and if things with the state pension dont as bad, then it will be a nice bonus.

[@Ultravenom1]

When the beat drops, I'm killing myself.

[@zappy7393]

Yep, wife and I have agreed that when it's time, we walk into the ocean together and never look back.

[@JynxedKoma]

Same here, Ultra.

[@polaris7122]

Yes, and none of you will have the bottle to actually do it!

[@9000paperclips]

@@zappy7393 it’s scary to me reading your comment that you are actually considering this? Is it a serious commitment or just an option? To be fair, the fact that people feel they need to consider it as an option is saddening - you deserve better 😢 Hope things turn out better for you and your wife that you don’t have to consider this option anymore.

[@2012edunne]

My thinking is that they want us to work until we drop dead, so they they have less money to pay out. Not every worker is able to work after 65 due to nature of workm builders, Plumbers and other workers that are on their feet all day.. Heath plays a very important part. as we get older our bodies are not able to get up at 5 am and be up until late at night when we get home. Our bodies suffer from wear and tear.

[@davefish8107]

I read a paper on what the working population was doing about 20 years ago. It said that out of the work age population a 1/3 was working for the state, a 1/3 was working in private, and a 1/3 was on state benefits . Would like to see what these figures are now I would guess that’s why the country can’t afford people to retire

[@markb1372]

I have been saying this for years!! We have a small amount of cash set aside for our kids pension later this year. Can you get Martin Lewis on the case? This topic needs to be put on the agenda.

[@TranquiloTrev]

At 3mins 6secs the presenter says that most people are expected to live to retirement age, and then live 20 years beyond it. This is not true. Life expectancy has reduced drastically in the last 10 years. It will continue to be decrease unless something is done about it.

[@markeh1971]

Hi, you are 100% right, life expectancy is reducing and health is getting poorer. The NHS is broken and not fixing you ASAP. For me it’s come back after you have had a heart attack and then we will treat you. Only problem is that it will kill me being a left descending artery blockage, currently 65% flow. Pension wise I’m putting in as much as I can to minimise tax losses and using ISA’s to have independent cash. For the young it’s should be SIPP and ISA to have flexibility and employer contribution. Take care all M, in gods waiting room.

[@Eric-kn4yn]

​@@markeh1971diet drugs alchohol lack of exercise but increasingly not smokes are shortening lives

[@captaindun]

Brilliant content Damien, well said. I’ve said much the same for years. Just wish politicians would start saying it.

[@petearmstrong2778]

The lump sum at birth has been raised for a number of years now - so they have actually lost ground already - and over time it could work. Some academic papers/public bodies have quite detailed outlines incl for those who die before say 18, never work, illness etc Current politicians work on a short-term basis though.

[@jam99]

It's very easy for the average civil servant to stay in their job until retirement as their employment is not very dependent on their performance. But how about people who do physical jobs? How many of them will be physically able to do their job at 70 years old?

[@carlmanson6634]

As a civil servant, where I work there are 3 ladies in their 60s who still need to work, one is full time still at 67! Our team productively is crap, tho mine is high at the mo, because they cannot afford to retire and so as a team we are not achieving. Not only physical labour struggles as we age.

[@cityblue0202]

My daughter at birth had £150 put into an account, she turns 18 in March and I found out that in her birthday it will be worth ……. That’s right £148, 18 years with Barclays what a joke

[@handlethehandle7]

Love your videos, your intelligence, your dedication. I really appreciate your work and wisdom.

[@richardschofield2201]

I think state pension will become means tested. So all those that prepare for retirement won't get a state pension.

[@steve83803]

Exactly! Ask yourself why the government is now trying to gain access to our bank accounts 😀

[@Brunty_Vegas]

I’m glad you did a video on this, it’s extremely important. Thank you mate 🙏

[@SubjectiveFunny]

Get your own pension and forget about the government pension. No chance this system lasts another 25 years.

[@superfab6438]

Really appreciate your videos Damien. Thanks for all you do.

[@delta0]

The private pension 10 year link has to be broken. It’s not fair on those that have saved and planned their retirement.

[@rusl12]

What is this?

[@delta0]

@@rusl12 there is a national minimum pension age that is connected to the state pension age. It is 10 years before the state pension age and it is when you can take your private pension (I.e. SIPP, workplace pension etc.). If the state pension age increases to 71 then this implies the private pension age would also increase to 61. This is really bad news for anyone that is saving a lot into their pension. It will prevent you accessing the money earlier leaving you to build a larger bridge if you want to retire earlier. The thing I really don’t like is the planning you need for retirement happens over many decades and you are trying to balance the pension with any bridge you are building to a pension. This kind of change could have significant impacts on the strategy you may need to take depending on what age you want to retire.

[@keziahthomas2526]

LISA retirement savings already require you to reach 60 to withdraw as well

[@dlyras]

@@delta0You can’t withdraw early? Or you can but not without tax implications?

[@delta0]

@@dlyras there are tax implications. It’s up to 55% tax so really not worth considering as a viable option.

[@lyracian]

I was expecting the state pension to be pushed to 70 before I get it. My retirement calculations are based off any State Pension being a bonus not something I expect. Kind of glad I was born in 1972 as I plan to take my pension when I hit 55 before rules change make it 57 the following year!

[@anonet78]

Me too next year.

[@Lookup2Wakeup]

Don't forget, once you draw down on your pension pot, you are restricted to the amount you can carry on paying in. Currently this is £4k

[@JynxedKoma]

Good luck with your state pension that is not at all safe from government meddling. Getting a state pension is like investing in some kind of business. Could be worth lots one minute, then absolutely ruin you the next.

[@janwhite6038]

1950s women get little support, we were demanding our right to retire at 60. 16 years later the DHS still haven't paid our compensation. For your own pension date security, support the WASPI protest and demand your MP puts pressure on the Public Health Service Ombudsman delivers their overdue report....delayed again

[@johngraves1558]

At some point the debate on Euthanasia will ignite .

[@SashaGrace94]

I can’t wait to still be sitting chained to my desk celebrating my 80th Birthday with my colleagues when the time comes 🎉

[@lesleywillis6177]

Thank your lucky stars you’ll be at a desk. Just think about those who are laying bricks or emptying bins etc.

[@hanjarake_taro]

I don't want to work mate

[@pickashole]

​@@lesleywillis6177my nephew is a brickie. Have told him many times that he needs to take the future seriously as his manual work will become back breaking.. He often drinks so much money away.

[@mikerodent3164]

"Chained to your desk". Who are your main clients? Tory MPs?

[@pickashole]

@@mikerodent3164 perverts have all political colours.

[@khiburgess5848]

Essentially a sovereign wealth fund, it's been suggested many times but governments always shit on it. We could have taken the North Sea oil reserves and would have enough money to sort out state pension, NHS and stop homelessness. But no, politicians think best even though they generally are the most unimpressive people you'll ever meet

[@scottgilchrist5659]

This is exactly what Norway is doing and they're now the richest country on Earth per capita. Real Life Lore have a great video on it.

[@jasongarfitt1147]

The gentlest way to adjust the triple lock is to switch to a double lock, using the middle value of the three instead of the highest value

[@adamcunningham6746]

Great video Damo! Great research, and input to excellent content 👍

[@DamienTalksMoney]

Thanks Adam! I hope you are well?

[@RosieHarp]

The UK state pension retirement age is 67 not 65

[@Lookup2Wakeup]

Still 66. But rising to 67.

[@RosieHarp]

@@Lookup2Wakeup thanks, I thought it was already 67

[@kevindarkstar]

​@@RosieHarpnot yet, but soon 😏

[@bigfist255]

Its already 67 ​@Lookup2Wakeup

[@jamesdaw131]

I have a 4 month old daughter. I am looking at doing this myself for her. Don’t trust the system to still be there when I am old, let alone her. I am lucky to be able to do this, I get it, but it’s such a simple solution.

[@capri2673]

He's right. Learn about compounding returns. A moderate amount invested will grow to a huge amount in a few decades.

[@jamesdaw131]

@@capri2673 yeah… hence putting in to my daughters pension now…

[@King_Harrold]

My daughter is 8yr old. I did the same and throw in £50 per month. She has a great pot, growing in-line with expectations and will see her as a millionaire at retirement.

[@kevindarkstar]

Only problem is all of this is based on a Fiat currency which is worth zero, you'd probably be better off investing in precious metal, like gold or sliver ect 🤷🏻‍♂️

[@jamesdaw131]

@@kevindarkstar disagree I’m afraid. If fiat currencies are worthless, precious metals are also worthless.

[@mysteries2solve]

They don’t want people retiring the shortfall in workers means they want you working and paying taxes until near death the mean life expectancy is 78

[@elliottharley1386]

Smart thinking that, you've got my vote!

[@RosieHarp]

71 sounds very old when you're young. 71 sounds very old when you're in your 60's.

[@SevenEllen]

Why? Are you in your 60s? 71 sounds old me to RETIRE, but I've had a few relatives (great grandparents and a great, great grand aunt) live until they were 90, 92, 99 and 104. THAT sounds old to me.

[@RosieHarp]

71 sounds very old TO RETIRE

[@Mikey_NoCap]

Your videos just keep getting better and better Damon. This is such an emotive topic and a lot of people are sleep walking into retirement poverty. What people wanted from their retirement 20 years ago is so different to the consumer led desires and dreams now. Ask my parents what they wanted when they hung them up 20 years ago and they would say peace and quiet and to grow old gracefully, now ask me and I want to travel the world, live the high life and experience everything.

[@paulkearsley9509]

Your idea is good, but the problem, 2 systems will need to be servised at the same time

[@connorg7930]

Seeing as my back is already nackered at 26 from plastering, how am I supposed to do this at 70.

[@paulmulks]

I'd suggest you look at new employment opportunities while your still young enough and while your back allows it

[@henghistbluetooth7882]

I’ve always wondered - is there a calculator to tell you what you’ve paid in to your state pension over 40 years and what you would have gotten had you paid those funds instead into a low cost index. After all - £200 a week for maybe 15-20 years seems a bit crap if I’ve paid in £100 a week myself for 40 years. That and I can’t even pass along what’s left to my son.

[@nickynooable]

Go on you.gov.uk and they will tell you if you've paid enough into the system and when you can take your pension. You'll need your national insurance number.

[@JHBEM]

Love it. I mean technically it exists with the JSIPP - but only where a parent/guardian/loved one personally invests.

[@TruthTeller00]

Love it Damien, what investment calculator do you use? Cheers mate!

[@tarak3439]

Can you add Royal London to your pension list mate? Thank you!

[@nickbrown6457]

So many people don't realise, you have to have bought a house/flat before you can retire. It should be your absolute number one priority. Retiring whilst living in a rented house/flat will mean you will be living in absolute poverty, relying on housing benefit, paying someone else's mortgage off, for the rest of your life.

[@martinanderson848]

Great video yet again .. simple and honest and clear

[@user-ns5yn8ux2u]

Great solution.

[@radinaivanova19]

Fantastic content! I have been calling pensions a legal ponzi scheme for a long time. This has been a topic of discussion for my partner and I, and my friends for a long time. The issues are so many - an aging population, kids growing up believing they can stay home and not go to school, perhaps later on they won’t go to work. We have private pensions and invest in index funds, but I do wonder very often how many people will be paying taxes so my generation can get a state pension. I love your idea about index funds and agree that everything looks very short-term. Could it be related to the party’s 4 year cycle and the benefits they want now vs what’s good for the country 80 years from now? As always, great content and thank you for sharing.

[@dlyras]

What is the point or benefit of having a private pension if you invest in index funds? Genuinely just curious about your logic and strategy.

[@radinaivanova19]

@@dlyras Hey, good morning. This is an interesting question. I like to have back ups and multiple streams of income. That gives me a sense of security. I don’t know what the future holds and 40 years from now I would like to have more options and be over prepared than not. Index funds allow me to invest more than my pension does and allow me to have more flexibility with accessing the money. Furthermore, private pensions have kicked in only in the past 5 years maybe? For people that worked longer than this index funds are a great way to make up the difference. Another factor to consider is if I ever take time off for maternity leave, I will have a gap in my pension contributions.

[@dlyras]

@@radinaivanova19 Thanks for your detailed reply. I think for most the advantage of a pension is the employer contributions. I haven’t looked much into how the taxes work but I know there is a big penalty for withdrawing early. Personally I prefer low cost index funds. The growth is similar and I can access my money whenever I need to in case of an emergency, the tax being the same as other capital gains. But if you can do both even better, I see the benefit. Well done! Wishing you every success.

[@simonperrins5175]

Really good advice!

[@dockeyboy]

Is the LISA considered more of an ISA? Hope they don’t up the age of that from 60.

[@grant9858]

Thanks

[@DamienTalksMoney]

Thank you so much!

[@make1496]

Another great one. Thank God (and my parents) I am already 57. Ready to leave the workforce, hoping I won't kick the bucket berfore I reach 67...But seriously, with a crumbling NHS and us 50-ers being anything but healthy, plus rise in obesity, etc., I think the average lifespan has peeked and will start to decline before 2044.

[@Ghengiskhansmum]

It has already started to decline in Britain. Wake up before you're dead.

[@JHBEM]

Really appreciate all the videos. Question, 8:10 what calculator website is this?

[@JHBEM]

Also having watched your video on JISA / JSIPP from a few years back I would hope that this ‘radical’ but very necessary change were introduced with a delayed start date so everyone could prepare for and be aware of it. Say like all children born from Jan 1st 2030 or something.

[@andrewgage6942]

I'm 56, in my entire lifetime, I have only known 9 people who have lived up to or beyond the age of 70, I have been to two funerals this year, one was 48, the other was 61, last year I went to quite a few funerals, most were under my age

[@johnennis3542]

Great suggestion re: £5k for future solution (although regulator will probably insist it’s n a balanced or cautious portfolio 🙄). And if I’m denied a state pension because of means testing, well, I can’t think of anything that would make me more irate. I’ve paid in and I want what I’m due.

[@DamienTalksMoney]

Yeah I didn’t suggest mean testing as an option because I also share your view that I should get it because I have paid in for a life time.

[@naomipaul9194]

In all fairness I’m quite doubtful I will be getting a state pension. Wouldn’t be shocked state pension becomes means tested with stipulations on the value of workplace pensions being the determining factor.

[@johnennis3542]

@@DamienTalksMoney and for clarity I wasn’t suggesting that’s what you were suggesting 😁 The other major issue that I have with the potential means testing of the state pension is that it’s an integral part of my retirement planning process today. I’m working towards saving enough for a comfortable retirement in future by spending less today. If my state pension is later reduced because of this then I’d be spending more today. It would be grossly unfair.

[@andrewharris3900]

The losses of the Ponzi scheme have to be allocated, someone has to lose out. The sooner we set an end date for the State Pension the better. But there will still be people who pay into it but get nothing.

[@eduardheard2538]

Loves the videos Damien, wondering if you will do one about the NHS pension?

[@DamienTalksMoney]

I just don’t know enough about the scheme personally but it is something I can look at

[@FeelMyBicepp]

They should NOT be able to change the age on private pension aces

[@jonathonfreelove5321]

Interesting things to consider when planning the future 🤔 I’m just curious do you any thoughts on money box as an investor provider as ive got an isa stock and shares and life time isa I’ve just left in there for last 4 years but I’m not sure if this a good choice compared to other options

[@craigtemperton7310]

If we are all paying into the work based pension scheme now, i believe that was put into place because there will be no government pension for us later on.

[@jabberwockytdi8901]

No that was put in place to make sure all employers offer a pension scheme after the SERPS scheme was canned . If they want to stop the state scheme in principle they'll need to give 20-30 years notice of that and reduce NI contributions to compensate

[@thequackashow619]

​@@jabberwockytdi8901yeah also a way to invest companies gamble pensions funds

[@oneworld1160]

Wrong perspective. You have solved the issue already through Brexit. Food poverty and a collapsing NHS will reduce the life expectancy of Brits so that your pension system will be ok.

[@dafyddrees9195]

Actuarial sciences at the heart of mainstream discussions is really motivating to study! (Even if it’s depressing)

[@zappy7393]

Yep, they just did this under the cover of darkness in Australia as well. Probably wont ever see my superannuation.

[@mendipfox1650]

I’m in favour of reducing the SPA for people who have 45 years+ NI contributions. Reward those who have contributed their whole life. Minimum qualification for State Pension should start at 35 years NI contributions. That should sort the issue in the medium term.

[@nodtothestrange1008]

Even if you don't pay enough to qualify for a state pension you can still get the minimum amount (which is really low with today's cost of living). You might think people should be disqualified from claiming it but it's better for us as a country than sending millions of elderly people from each successive generation out on the street to die. I found out about this from reading a post on the UK Financial Advice subreddit where a guy's dad had worked cash in hand as a builder his whole life and somehow never been caught for tax evasion. He was reaching retirement age and he had no money in his state pension because he'd never paid NI. Even though he was thieving b*astard it's better than basically executing him by making him homeless.

[@mendipfox1650]

@@nodtothestrange1008 you need at least 10 years NI contributions to qualify for a minimum state pension. 35 years for a full new state pension. I am suggesting move the minimum state pension to maybe 30 years and increase the full state pension to 45 years. Also allow people to claim their state pension at 65 if they get 45 years NI contributions. Essentially reward those who have contributed all their life.

[@nodtothestrange1008]

@@mendipfox1650 but that's penalising a lot of people. E.g. what if you emigrated to the UK as an adult so you were unable to work here for 30 years, or you spent a lot of time raising children rather than working? Children who'd go on to contribute to the country's economy, sure you'd deserve something for that as their parent. Anyway there's the emergency minimum pension thing I mentioned, because it's better than kicking elderly people out on the street.

[@Duncan94]

An increase in state pension age is one thing for those in a DC pension but it's a whole other kettle of fish for public sector employees in DB pensions. I'm in a DB pension but cannot access my workplace pension until state pension age. So unlike DC pension members who can retire relatively early with whatever size of pot has been built, DB pension members are hit with a penalty for retiring before state pension age, effectively forcing you to work until state pension age which is seemingly ever-increasing.

[@rexblackstream7050]

Can you not retire early with a slight reduction in your pension?

[@Duncan94]

@@rexblackstream7050 It is still a possibility but the penalties are quite substantial. My state pension age, and therefore my normal workplace pension age is 68. By retiring at 58 I would be losing 20% of my yearly pension and get no lump sum.

[@Life_Literacy]

As an example of the penalty… I have currently paid in to DB for 20years (currently 42 years old). I am predicted to get annual pension of £27,383 at age 68 (not adjusted for inflation). If I want to retire at 60 I am predicted to get a reduced annual pension of £16,455. I am currently saving in to a LISA and S&S share ISA which will hopefully give me pots to pulls from to give me the annual amount I want to live comfortably if I retired at 60.

[@DamienTalksMoney]

Yeah I mention this point at the end of the video. This is why an ISA to bridge the gap is a must for public sector workers

[@waynemay7327]

A 20% reduction and the loss of a lump sum seems a good deal for ten extra years of retirement.

[@Dswatches]

Everyone will start putting money into index funds instead?

[@rubywhite312]

Thank you for sharing! How about people who were born in 1970 (not after 1970)?

[@Gemok1980]

Civil service alpha pension is already linked to SPA so when that goes up so does the scheme's retirement age.

[@janeknight3597]

And according to the Telegraph lots of younger civil servants are not paying in !

[@Lakedistrictrider]

Same with USS pension for university staff. More than a double whammy when they lift SPA

[@Sweetie8387]

I’m on this scheme and tracking closely. I thought it was linked to government retirement age? Which is also going up to 68 by time I get to 58 when I will retire at minimum retirement age.

[@calum6590]

Exactly the days of amazing lumpy final salary public sector pensions are long gone. Nearly all are based on career average earnings and linked to state pension ages. As the government suppresses public sector pay they are also keeping those career average numbers low whilst pushing up the age to access. Still a good pension don't get me wrong but the massive burden of public sector golden pensions has been addressed. They are long gone for new starters or those early in careers but obviously there is a lag time whilst the last few generations above feed through the old system.

[@nicholasdickens2801]

Your pension plan is mind blowing-ly simple and very efficient.

[@rdtheskald]

Getting to a point where people will just give up, live life with family as much as we can and die.

[@LiamR90]

They also still take NIC's regardless of it you've paid in for 35 years.

[@jabberwockytdi8901]

Raising the official retirement age just adds to inequality. Everyone who can afford to will continue to retire as soon as they want and will plan accordingly. To those with larger incomes the state pension is a smaller proportion of their total and with the demise of DB pensions there are no deductions for early retirement to worry about. You just have to decide when you have enough in your DC pot to retire on or not ( Tip it never seems enough but you will never get those say 5 extra years back where you don't work, or volunteer for something that is important to you or work part time etc. ) So if you are done with your current job/career take the plunge and make it work.

[@jjefferyworboys8138]

In life you make choices. I retired at 50 because after repaying my mortgage, it was my top priority. Most people lack the willingness to do whatever it takes to achieve their goals.

[@bushmonster1702]

Not a chance in hell I'm still working at 70.

[@DamienTalksMoney]

69?

[@JoeeyTheeKangaroo]

@@DamienTalksMoney Whatever France gets I want.

[@geoffhalbert5435]

Just like my mate. Well done for still being motivated

[@mattneilson6081]

​@@DamienTalksMoneyif you're offering 😂

[@kevinsyd2012]

You don't have to work to 70. Build a personal pension which you can currently take from age 55, then see the state pension as a bonus when it kicks in.

[@Stuey001]

One problem with the pushing out of the state pension age is that is also pushes out the age at which we can access our private pensions. If you have enough saved/invested to retire you may not be able to access it when you want because of changes to the state pension age - even if you don’t not need to rely on the state pension! I hope that if they continue to push it out they will decouple it from the age at which you can access private pensions.

[@JohnDuffell]

great idea if you're thinking as a private investor, but for the government, it's not the best use of the money to invest 3bn a year in untargeted private companies, rather than investing it in public services or long term initiatives e.g green energy etc. Also it's transferring the risk from the government to individuals, which was pretty much the same as the defined benefit -> defined contribution switch that companies did the same. But if the stocks go bad it would still be down to the state to give them enough money to survive, so the government might have chucked loads of untargeted money into private enterprise and still be on the hook.

[@EamonCoyle]

My plan would be even more radical in many senses. I would suggest a pension at birth of 50k that is invested for 25 years at a more realistic 4% expected interest. At 25 the balance would be around 104k meaning the government takes back the original 50k and the other 54k goes into a workplace pension. If someone put £100 per month in until the age of 65, again with 4% expected interest they would end up with roughly the same 450k. Also, it would mean that after 25 years the system would start paying for itself due to the government recouping the original 50k. Would be more costly my way to fund, but less reliance on the markets due to the lower interest expectation, and also would allow a more stable pension investment strategy overall.

[@EamonCoyle]

@@1newme425 I live in N.Ireland....we average 23k births per year so it would be just over a billion. I think that's reasonable !!

[@FirstMM]

Don't forget to take 3% average inflation off that 4%. That leaves 18k to go into the pension and compound at age 25.

[@EamonCoyle]

@@FirstMM You don't seem to understand inflation. They don't take it back from what you earn, but thanks for playing !!

[@EamonCoyle]

@@1newme425 Then suggest something better. What Damien was doing, and what I am doing is offering a solution to a problem that will keep getting worse. Throwing negativity at solutions rather than offering one yourself is a waste of everyone's time !!

[@FirstMM]

@@EamonCoyle Based on my calculations, at age 25 there would be 128k in the pot. After the gov takes back £50k at the age of 25 (which is actually worth 23k after inflation effects) this leaves 83k. This is invested until the age of 65 for a final pot of 400k. 400k in todays money is worth about 53k after 3% annual inflation year on year. After 25 years, the gov would need to be adding 104k at birth to reach the same real value. Thanks for letting me join in your game !!

[@sethanith3181]

The other knock on of forcing people to stay in jobs will entirely stagnate the market as employers will not be able to bring on younger generations whilst those in their 60’s look to ride out their last years.

[@hachimaru295]

Especially as the nhs diminishes . And peoole have to work to get medical cover thru their job in their late sixties etc

[@fhgcghbvvjdhfh8181]

They'll be plenty of jobs in healthcare and manual labour for young people if they want them.

[@ijw2009]

Nice idea Damien

[@DD-lc5ts]

Yes 15 is the age I started work as an apprentice electrician. I’ve payed tax and NI ever since.

[@Pegaroo_]

We could have been Norway

[@iansimpson936]

Just downloaded your cheat sheet Damo. It’s really good helps me massively to educate my kids and friends. Keeping banging your drum and eventually more and more people will listen and act.

[@DamienTalksMoney]

Really glad you have found it useful! Thank you for letting me know

[@kenneths1585]

The governments idea is that we die before we reach the age that we could claim our pension. The only option is paying into a private pension and increasing the payments made into it as much as possible for a comfortable retirement. We can't rely on the state pension any more.

[@PeterHD-hj6bi]

Very true words @kenneths1585, when I was 30 my old Dad said not to rely on the State Pension so I bunged 15% of my wage into a company pension. Then took on a second job (part-time) and invested that money. It was a bit hard because I missed spending/wasting all my wages but it paid off. Trouble is with the wages vs inflation today it ain't easy to rent or buy and keep your head above water on a single job

[@stevewallace1387]

Retirement age here in the uk is 67 at the moment . I retire in four years after working for 51 years and paying taxes for 51 year's i have paid for my state pension as have many others

[@LEWIS1992]

Worth remembering that if someone claims that £400k payout in 60 years time, it won't ACTUALLY be 400k (due to inflation). It'd be significantly less. There's also the worry that people would splash all of that cash in one go and then have zero money left after a year.