When I’m 64…

I saw this BBC report on French protests about the retirement age being raised to 62. Of course, the typical French disdain for England is annoying – the same old stereotypes being dredged up by French protestors.

But the real point applies to France and England – and most of Western Europe equally – who is going to be paying the state pension by the time I ‘retire’? I personally think that the concept of the third age, rather than a retirement, will have become normal by the time I am 65.

By third age, I mean it will be normal to enter into a new career, to use your life experience working with a charity, or working on the local council… doing something useful that is still work and probably still pays something – though far less than you would have earned during your main career. But by that time most of us won’t have a need to support kids or a mortgage anymore, so income requirements should be more modest anyway.

What I don’t expect is that I can hit the age of 65 and suddenly put my feet up and retire from work, to live out the next 20 years on the golf course.

In Britain, it’s the present taxpayers who pay the state pension through their tax. The older people claiming pensions will suggest that they have paid into their NI pot and now they are just claiming it back, but there is no bank account they are paying into, it’s the young workers paying their pension. The stakeholder pension was the first step towards trying to shift people to a sense of personal responsibility for their old age, but I’m not sure I have met anyone who actually has a stakeholder pension.

Perhaps it sounds too harsh and ‘Anglo-Saxon’ to suggest that personal responsibility needs to make a return – rather than a blind reliance on the state, but European demographics are not favourable. There will be far more old people as I age and fewer young workers paying income tax. Immigration would be the only real solution and yet that’s not something most politicians are welcoming either…

If you are ‘retiring’ 20 or 30 years from now then don’t look to the state to pay for your every need. Or if you think that’s an unreasonable assumption to make, then get out on the street and throw a few bricks – like the French.
Entire family over 100

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