Grim statistics on retirement age and life expectancy

[Pigmy Pony]

A quick follow up to previous couple of messages. If anyone is reaching State retirement age, it may be worth considering options for taking the state pension. For various reasons I wanted to defer mine and I calculated that deferring for one or two years would have been optimal. Unfortunately (or was it? ...) I left things longer than that, so it looked as though I was going to have to wait until I get to be around 100 to break even. However, when I did finally get round to it, I was able to take a lump sum which was very useful for a large purchase which would otherwise have been quite difficult to do.

Each person's circumstances are different. If you need the money, then taking the state pension as soon as possible makes sense, but if you don't then deferring can be helpful. When you take the SP you still have the option of taking a larger monthly payment or a lump sum.

Do your own assessment of your needs, and don't let financial advisers sway you too much. Also don't let the DWP rush you into taking the money early if you think deferring will help. However DWP will probably forget about you if you don't take the pension at the first opportunity, so it's best to keep on top of this and periodically check. As it happened things seem to have worked out OK for us, but that wasn't a given.

Ah - another thing which may not be generally known, and I only found out about this after talking to a DWP agent - it may even be possible to take the SP, then subsequently suspend it to get the benefit of a deferral - but for most people I think it's going to make sense to think about a single deferral period, from the date of first eligbility.

Very interesting Dave, I was not aware of this! As things stand I am physically able to do my work (and long may it continue). So it may make sense for me to carry on until it becomes difficult (which hopefully will be beyond retirement age) and by deferring pension I could then receive larger payments when I come to need them.

Reading this back it sounds a bit sad, but my job is quite physical, and when I become unable to continue, it doesn't mean I'll be too knackered to enjoy life the same as mere mortals

[rmcin626]

Ah, 'financial advisors'... I'm not a big fan of those either, as they're primarily focussed on 'advising' you on what's best for boosting their bank balance!

I advise myself, or will consult people close to me I trust with the necessary knowledge.

Marco.

Having worked in Finance for awhile I am pretty good with numbers but unfortunately there are a few things that have to use a Financial Advisor by law when it comes to pensions. Luckily his numbers and mine are pretty close.

[Oddball]

These statistics are only of any use when sampled from a large enough population, and the closer to home you get the more unreliable they become.

My dad turned 80 last August and still works three or four days a week (cherry-picking the nicer jobs) because he loves what he does, and it keeps him in touch with suppliers/customers/friends. Mum had a major stroke at 58 and died aged 63. Where does that put me as a 61 year old?

My dad had a stroke at 66 ,just after he semi retired , but my Mum is still alive and 85.
I dont expect to retire any day soon , mind you ,hip trouble and arthritis in my hands and feet (working on the farm in the cold every day does not help ) although cicumstances may put a spanner in the works!!
I am 61 too PP

[Pigmy Pony]

On borrowed time?

Oh I'm on borrowed time alright, and the APR is ridiculous. When the bailiff (grim reaper) comes round, I'll be hiding behind the sofa.

[Pigmy Pony]

My dad had a stroke at 66 ,just after he semi retired , but my Mum is still alive and 85.
I dont expect to retire any day soon , mind you ,hip trouble and arthritis in my hands and feet (working on the farm in the cold every day does not help ) although cicumstances may put a spanner in the works!!
I am 61 too PP

Simple solution for your arthritis Anto - swap your farm for a cattle ranch in Texas. Yee-hah!

[struth]

A quick follow up to previous couple of messages. If anyone is reaching State retirement age, it may be worth considering options for taking the state pension. For various reasons I wanted to defer mine and I calculated that deferring for one or two years would have been optimal. Unfortunately (or was it? ...) I left things longer than that, so it looked as though I was going to have to wait until I get to be around 100 to break even. However, when I did finally get round to it, I was able to take a lump sum which was very useful for a large purchase which would otherwise have been quite difficult to do.

Each person's circumstances are different. If you need the money, then taking the state pension as soon as possible makes sense, but if you don't then deferring can be helpful. When you take the SP you still have the option of taking a larger monthly payment or a lump sum.

Do your own assessment of your needs, and don't let financial advisers sway you too much. Also don't let the DWP rush you into taking the money early if you think deferring will help. However DWP will probably forget about you if you don't take the pension at the first opportunity, so it's best to keep on top of this and periodically check. As it happened things seem to have worked out OK for us, but that wasn't a given.

Ah - another thing which may not be generally known, and I only found out about this after talking to a DWP agent - it may even be possible to take the SP, then subsequently suspend it to get the benefit of a deferral - but for most people I think it's going to make sense to think about a single deferral period, from the date of first eligbility.

only going to have sp so tough times ahead again.

[struth]

I recall that was why the fomula I mentioned specifically mentioned grandparents - more reliable for the predictions I was told. There may be variants which include parents' ages as well, but they will only work when the data is known - which at the time I was told of the formula did not apply to me as both my parents were still alive.

3 of my grandparents were 78 or older when they died(decent ages considering 2 fought and were injured in great war;1 gassed too); one was fairly young(50's). mother was 86, dad 56. Ive beat him so doing well there lol.

[dave2010]

Very interesting Dave, I was not aware of this!

Government departments are sometimes more than a bit forgetful when it comes to letting people know what they might do, or not. It's probably easiest for the people working in DWP to assume that everyone will take their SP as and when they become entitled, and its too "complicated" for them to deal with people who want to do anything else - so they put those people on the back burner, and then (perhaps) forget about them until they resurface - or, relevant to this thread, pass over. There are departments which are supposed to deal with deferred pensions, but in all the time that mine was deferred (more than 4 years) I don't recall a single follow up mail, email or phone call. Perhaps those departments are overstretched, underfunded, short staffed etc., or maybe their computer systems don't keep up.

Other benefits which people aren't always aware of are things like Attendance Allowance for relatives. In the case of my f-in-law and m-in-law, my m-in-law became seriously incapacitated, which was causing great problems for her husband, mostly physical and practical. It was only a chance visit by me to my own doctor about something completely different which alerted us. My doctor said something like "but of course he's getting Attendance Allowance for carers ..." which resulted in a blank stare from me. On investigation it turned out that he was entitled to support to look after his wife, which was a considerable help, but his own GP hadn't mentioned that to him. Some departments work on the assumption that if you don't know you won't apply, and thus won't be a drain on the "system".
Also such benefits can often not be back dated, so the longer you are kept in the dark the better!

Actually it's not only the money - in the case of my f-in-law he probably could have afforded to pay for the carers himself, and after he died there was a sizeable tax bill, but he would not have been able to organise the carers without help, so getting some support from "the system" was a great help.

[Marco]

Oh I'm on borrowed time alright, and the APR is ridiculous. When the bailiff (grim reaper) comes round, I'll be hiding behind the sofa.

If big Dougie calls, tell him I've got his leather shorts ironed.

Marco.

[dave2010]

3 of my grandparents were 78 or older when they died(decent ages considering 2 fought and were injured in great war;1 gassed too); one was fairly young(50's). mother was 86, dad 56. Ive beat him so doing well there lol.

Applying the original formula you should be good till 81 - I hope you get past that.

I once opened the door to a woman selling/offering flowers who looked at me and said - "You'll live to be 93." If I make it to 94 she was wrong!

If I don't, then I won't know.