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UK public sector retirement and pensions overhaul

March 10, 2011

My goodness, there’s been a lot of reaction to the proposals today; and not surprisingly, I suppose.

However, no-one seems to have mentioned some possible advantages. I was able to retire from teaching at age 58 with a pension only slightly reduced below the maximum possible. I imagine most, if not all, public sector workers would be able to do that. I believe it has always been possible to retire early on grounds of ill-health.

Many occupations wear the body and mind down and employees are, understandably, appalled by the thought of having to work an extra 5 years. Provided the employer agrees, reducing one’s hours or responsibility could make all the difference. Until now this would very adversely effect a final salary pension but, if the pension is based on average salary (and number of years worked, presumably) then working a few extra years at a lower salary commensurate with shorter working hours and/or less responsibility¬† might make very little difference to the pension.

Strikes and protests will not magically produce the money to provide pensions at the rates seen up until now. The present retirement age for men of 65 was fixed (I believe) when his average life expectancy was only slightly more than 63. Now it’s nearly 78. Think about the logic of the planned changes.

Besides, very many retirees (provided, of course, they’re in reasonably good health) quickly discover they are bored and seek a part-time job. I know I did.

So I urge employers to consider ways to accommodate ageing employees who would prefer to go part-time in the run up to their retirement.

In case you’ve missed all the details, read the full story: here

One Comment leave one →
  1. March 23, 2011 2:28 am

    Unemployed older Americans who’re unhappily accepting early retirement typically start drawing on their Social Security benefits early, which affects both their income and the rest of the economy. The later retirees wait to draw Social Security, the higher their monthly income checks will probably be, usually within the range of an extra 6-7% for each year between ages 62-70 that they wait.

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