kraftiekortie wrote:
I forget where you live, Tough Diamond--but, in most places, you could get at least a reduced retirement pension.
In the US, your benefits would be reduced by about 25% if you retire at 62. Some people opt for the reduced Social Security, and get a job they like, instead of a job they need. They use the Social Security as a basis, not as something to totally rely on.
The UK pension system absolutely sucks, in my opinion. Social Security sucks--but not as much as most pension schemes.
Sorry, I didn't explain it very clearly. I'm in the UK, and I've already saved up and quit work. My pensions will kick in when I'm 65, and they're forecast to give me pretty much the same income as I had when I was working. Meanwhile I'm coasting along on savings, and as I'm very frugal by nature (and own my home outright), I won't run out of money unless something really awful happens. I agree that UK pensions and benefits are becoming pretty lousy, but luckily I held down a job for most of my working life, and built up a decent occupational pension.
Happily, I'm also old enough to be on the tail end of the "baby boomer" thing, so I can get the few remaining scraps from the old system which was comparatively generous. Had I been a month or two younger, I'd have had to wait till I was 66 for my State pension. And there's something called Pension Credit that is supposed to kick in when I'm 63. It's a means-tested income top-up, payable to anybody of female pensionable age (regardless of actual gender) - they're currently racking up the female pensionable age from 60 to 65, to harmonise it with men, so with zero income, it could be quite good, though I'm expecting them to fight tooth and claw to fob me off with nothing.
They're bringing in the pension draw-down option here, but it seems that my pensions aren't of that type, which at least means that they can't use it as an excuse to cut my Pension Credit. I studied it all in great depth some time ago, and I've allowed some good safety margins, with typical ToughDiamond defensive pessimism.
Pension draw-down is an interesting thing here. When I thought it might be an option for me, I calculated the age at which I would have to die in order to break even - it was rather young cf. the average life expectancy, so for a healthy person in the UK, it only makes sense if there's no better way to fund the gap years.