Pension Age - should it stay at 66?

Editing this post

A poster asked:

Anyway, if Government tries to auto enroll me in a private pension, I will opt out (you will only have 6 months to opt out). I work in the private sector.

I asked

why?

My bad Jim ( good to see you again)

This was what was posted

Anyway, if Government tries to auto enroll me in a private pension, I will opt out (you will only have 6 months to opt out). I work in the private sector.

I asked

why?

( because with the taxman putting in half......)

Your statement is false.

Most (not all) current public servants will receive the State Pension, and so any increase in the State pension age does affect them.

NB: as pointed out below, due to the Supp Pension, any increase in the State Pension age will not have a negative impact on most PS.

(1) Pre 1995 PS typically don't receive the SPC, so aren't affected by changing the SPC age

(2) PS hired after April 1995 - can retire and receive work pension from age 60, but won't receive SPC until pension age.

Subject to certain conditions, a Supp pension may be payable until SPC kicks in. Yes, you are correct, fair play, I had missed that.

(3) PS hired after 01.04.2004 - can retire and receive work pension from age 65, but won't receive SPC until pension age.

I'm guessing these can also possibly receive the Supp pension for a year, from 65 to 66? Again, I missed that, you are correct.

(4) PS hired after 01.01.2013 = Single PS scheme - can retire at 66

What ever happened the pension reserve fund?

Broadly speaking, it was used to recapitalise the banks.

In return, we owned/own BoI, AIB, EBS, and pTSB.

The State has sold down its shareholding in BoI, and has received back more than it initially spent.

We own approx 70% of AIB, and the plan seems to be to slowly sell the shares.

We own all of pTSB.

Obviously, the shareholders are paid any dividends.

Following the commencement of the relevant provisions of the NTMA (Amendment) Act 2014, the NPRF‘s investment mandate ended on 22 December 2014.

The assets of the National Pensions Reserve Fund (NPRF) became assets of the ISIF on the ISIF’s establishment (22 December 2014). For more information on the ISIF please click here.

The Annual Reports and other publications of the National Pensions Reserve Fund are available below.

ISIF:

So many untruths in one post is impressive.

The European General Court has already ruled in favour of Apple, and stated that the money is Apple's, not Ireland's nor indeed any other EU country's.

The appeal to the ECJ is being made by the European Commission against this judgement - you've gotten your assertions completely arseways on this.

PS get pension benefits as follows:

(1) lump-sum

(2) pension

(3) survivor's benefits

Are you suggesting some or all of these benefits be cut?

Bear in mind the employer and employee signed a contract regarding these benefits.

It is false to say that Apple pay 0.005% CT here.

Here are the facts, read the two links below:

https://economic-incentives.blogspot.com/2018/01/what-apple-did-next.html

Apple pay about 13% CT on the profits of their Irish branch.

In the UK, teachers do not get a pension lump-sum.

They get a pension worth 1/57 per year of service, so after 40 years, they get 40/57 or 70% of previous earnings.

Here PS get lump-sum of 1.5 times salary (120/80) and 0.5 times salary as a pension (40/80).

You suggest to abolish the lump-sum.

Are you suggesting the pension be increased towards UK levels to compensate?

The combination of 150% lump-sum and 50% pension has traditionally been equated with 66.67% pension.

You cannot compare any the social support in any European country with the US. In the US you are generally depending on a work or private pension. State support is very poor.

Therefore in the US workers tend to stay working longer especially if there health is good. If they do retire they often work part time to supplement there pension.

Completely agree, the opposition came from those who had to claim benefit allowance for the year in between. But these were state employees!

The state increased the retirement age without changing the legislation to allow working until the new age, crazy.

Is the USA State Pension poor? I'm not sure. It is calculated as follows:

https://www.aarp.org/retirement/social-security/questions-answers/social-security-benefits-calculation.html

Throughout your working life, you accumulate an earnings record (sometimes called a work record). That’s the foundation the Social Security Administration (SSA) uses to calculate your benefits, using a three-step process.

First, Social Security adjusts your earnings for historical changes in U.S. wages, takes your 35 best-paid years and produces what it calls your average indexed monthly earnings (AIME). Only income up to the maximum taxable earnings — the annually adjusted cap on how much of your earnings are subject to Social Security taxes — is counted. (The maximum taxable earnings in 2022 are $147,000.)The formula breaks down your average monthly wage into three parts. In 2022, it is:

• 90 percent of the first $1,024 of your AIME;
• plus 32 percent of any amount over $1,024 up to $6,172;
• plus 15 percent of any amount over $6,172.

Lets' assume your AIME is 5,000 / 60,000 pa.

(0.90)(1024) = 921.60

(0.32)(6000-1024) = 1592.32

So the pension per month is USD 2,513, which is not bad.