Retire at 75? I'll be dead!

Sleipnir

Mods, not sure if this is the right place for this so feel free to move.

I can't believe this, retire at 70 or 75? they'll be using us when we dead soon.

The Society of Actuaries in Ireland has recommended an increase in the retirement age to at least 70 in an effort to avert a predicted pensions crisis in Ireland. A report due to be presented to the society's conference on ageing next month has predicted that the cost of state pensions in Ireland will more than double in the next 50 years as the population continues to get older. It predicted that total state pensions in 2050 would amount to around 7.9% of GDP, compared to 2.9% at present, with the number of people over the age of 65 expected to increase from the current level of 500,000 to 1.25 million. In an effort to address the problem, the Society of Actuaries said the retirement age should be increased to at least 70 and possibly even 75.
Responding to the recommendation, the Tanaiste, Mary Harney, said she was not in favour of raising the retirement age to 70 or 75. Ms Harney admitted that the growing number of elderly people in Ireland would create major pension problems in the future, but she said she would not support a significant increase in the retirement age. The Tanaiste said it would be improper to expect people to work more or less until the day they die. SIPTU spokesperson Roisin Callender echoed Ms Harney’s comments, saying the younger generation would be strongly opposed to any increase in the retirement age. However, Ms Callender said she believed some type of reform was necessary to ensure that the State could continue to pay adequate pensions into the future.

Victor

I think it sould be a fixed proportion of the population at about 10% or whatever. Remember when the pension was introduced in the mid 1800s, very few people lived to 50, never mind 65.

Pre-retirement is also a problem with a lot of the 55-65 age group being seriously under-employed (many who were structurally unemployed who were put on pre-retirement benefit to cut dole queues).

Victor

Is it me or does this sound like "nanananananana we can't hear you, nanananananana we don't want the hard truth nanananananana because it would upset voters nanananananana"?

http://home.eircom.net/content/irelandcom/breaking/1559817?view=Eircomnet

Government has 'no plans' to raise retirement age
From:ireland.com
Thursday, 25th September, 2003

The Minister for Social and Family Affairs, Ms Coughlan, has dismissed a report that the only way to halt the spiralling cost of State pensions is to raise the retirement age to 70.

The report, by the Society of Actuaries in Ireland, notes that the cost of State pensions is set to more than double by the year 2050. It suggests that the only way to avoid a financial disaster is to raise the retirement age to at least 70, and possibly 75.

"There are no plans whatsoever to increase the retirement age as suggested by the Society of Actuaries in today's press reports," said the minister.

At present, there are more than 400,000 people aged over 65 in Ireland. However, demographic statistics show that figure will rise to 1.25 million by 2050.

"I am acutely conscious of the changing demographics here which points to a larger older population in years to come," Ms Coughlan said.

She noted the Government has increased pensions by 59 per cent since 1997, changed the tax code to remove 77,000 pensioners from the tax net and established the national Pensions Reserve Fund.

She said the Government also planned to increase private/occupational pensions coverage from 50 to 70 per cent of workers and pointed out it had also recently introduced PRSAs to help increase pensions cover.

A fund of €500,000 has also been allocated to the Pensions Board for a major pensions awareness campaign.

The Society said the cost of paying State pensions was about 2.9 per cent of GDP but would rise to 7.9 per cent in 2050. If the shortfall was to be funded by income tax, it would mean raising the tax by 15 per cent.

Age Action Ireland said forcing people to work into their seventies is "anathema" to civilised social policy. A spokesman said although the traditional retirement age of 65 is "daft and outdated, great care should be exercised in extending that age".

"Retirement dates should, subject to some parameters, be a matter of choice," he said. "There should be a 'decade of retirement' allowing choice, depending on health, income and ability."

sceptre

Originally posted by Kananga
The Tanaiste said it would be improper to expect people to work more or less until the day they die.

Oooh, please tell me Mata used the phrase "more or less until... they die"

hamster

Hmm, why not save up for a gun for your pension? It's a cheap solution and will do as much good as retiring at 75. I jest....

However I don't intend to work to work until the day I die either. It is scary the way the government of the day can decide to change retirement parameters on an ongoing basis while you plan a long term strategy to meet that goal.

Pensions.... can the government
1) change the relief that one can get 20%/42% as the tax changes every other budget.

2) stop giving this relief when the majority sign up for a pension/prsa... arguing that the money is needed to fund the upcoming waves of pensioners.

Point (2) does away with the main point of pensions... their attractive relief... if they ever did that then what's to stop people investing in cheaper index/managed unit funds ? The only thing that makes pensions good is their relief (unless your employer matches contributions). The age restrictions placed on them are awful...... at least you can plan with private equity funds without changing rules and interference from the government of the day/future...

.... Retiring at 75? Ha! I can't see myself lasting that long. Honestly, Flexibility is the key.....

Next generation will have to have their parents opening a pension fund for their siblings when they are only 8 years old and the kids themselves funding it when they turn 18... so that they might retire by 60... that's if the birth rate doesn't go any lower...

Hmm... such long term funds that might conflict with medium term funds such as saving up for college funds.... and then the mortgage. Ha! Forget holidays.... Hmmm... what was life about again?