Delaying pension

[Bubblegun]

I don't think it is worth delaying the pension. The break-even point for deferring is about 20 years. Taking into account that the average life expectancy is 80 in the UK, we are throwing the dice. and generally, as we get older we tend to spend much less, and in poorer health.(something most people forget)
https://www.moneysavingexpert.com/savin ... e-pension/

So the break even point if we delay our pension from 67 to 68 yoa is 88 years old. Each year deferred only gives us about 5% extra.

For those of us in our forties that is the age we will start to receive the British state pension.

Yep, and it's also going to hit a lot in their 50s too. The chancellor is also considering pushing this up to 69.
I will say this though, I'll IGNORE the AVERAGE life expectancy because I think the best figures to consider are what is called the QUALY. Quality Adjusted Life Year. or even better the Healthy Life Expectancy or HALE which shows we fall short before we collect our pensions. It isn't talked about much, because clearly, politicians want us all to think we are living longer and healthier lives, and most people don't work in health care and have never heard of these.

So when we consider the FINANCIAL BENEFIT of deferring our pension, I think we should also consider the HEALTHY LIFE EXPECTANCY. No point getting an extra 5% or 10% if you can't go anywhere and we're stuck at home. I don't want to blindly follow what the chancellor is saying. He has a bank balance to consider but its us in the real world that have to balance, our quality of life, and a healthy life.

Food for thought.
https://www.ft.com/content/68557f93-975 ... 74b64500f7

This is the retirement paper/calculations from HMRC
https://assets.publishing.service.gov.u ... etable.pdf

[Roger Van Zant]

As the UK pension is fixed for Japan residents when you retire, if you delay your UK pension, will it be fixed at the higher rate? If Japan continues with this low rate of inflation compared with the UK could this make delaying your UK pension even more attractive? Any opinions?

The low rate of inflation in Japan is why I am not really bothered about the UK pension being fixed once you reach pensionable age.
As long as it continues rising in line with the triple lock, Brits who are now in their forties and plan to retire in Japan don't really have much to worry about.
I cannot foresee that the inflation rate in Japan will exceed the triple lock % rate in the UK; it would collapse the Japanese economy, for one thing.
Even if the rate of inflation starts to increase, the Bank of Japan/government of Japan will just pull off some financial trickery, like they always do.
I'd hate to only have the British pension to fall back on if I were retiring in the UK, but the cost of living in Japan is way lower than the UK, hence the state pension goes quite a bit further.

[TimVest21]

Any leads on potentially good annuity choices here in Japan?

[Tkydon]

Any leads on potentially good annuity choices here in Japan?

Now? or at some time in the future?

[RetireJapan]

Any leads on potentially good annuity choices here in Japan?

Let's make a new thread for this topic

[Moneymatters]

...

So when we consider the FINANCIAL BENEFIT of deferring our pension, I think we should also consider the HEALTHY LIFE EXPECTANCY. No point getting an extra 5% or 10% if you can't go anywhere and we're stuck at home. I don't want to blindly follow what the chancellor is saying. He has a bank balance to consider but its us in the real world that have to balance, our quality of life, and a healthy life.

...

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OK. Don't say I didn't warn you..

I'm not a Doctor But It's nice to see Healthy Life Expectancy getting a mention.
At least now I'm a born again, non-smoking, teetotal, lycra clad aberration of a middle age man.

Two factors also play a large part in things, and whilst my "knowledge" is based on the UK it likely applies almost everywhere.
1. A Post Code lottery. I won't share a link but there much written on the socio economic impact(hence vocation/lifestyle/"grimness") on healthy life expectancy. (tldr; If at all possible don't be born in Blackpool*.).
Mitigate against this by having mentally challenging vocations, keeping physically active and make use of available preemptive medical treatment. (And moving far away from Blackpool.). Acquiring a second language is often lauded for preserving mental faculties but I'm doubtful just based on the number of reading glasses I've lost recently.

2. The Genetic Lottery. Without a DNA analysis you should know what risks exist in your family tree. Admitted there is less you can do here. (Although I did read about one guy who fathered 15 kids off-shore...) <suspicious eyes emoji>

Anyway, I read somewhere (probably here) the biggest regret of retirees in Japan is not starting regular exercise earlier in life.

Now then.... Does anyone want to attempt the sit/stand test and report back?
https://www.washingtonpost.com/lifestyl ... story.html
Warning: First attempt may be humbling..
https://youtu.be/IzYftUVNDbw?si=Hm9UadvsGZac99ka

I'm an 8. I'm aiming at 10 but will need a LOT of stretching. I'm #blessed to have my mother as an inspiration. She just got a new Yoga mat aged 85 and has recently started doing ParkRun.. (No. That is not my mother in the Video.).

* Back pre-internet, I was out for a night in Blackpool and ran across a Hen Party. Or more accurately was run over by one. The Chief Hen (AKA the soon to be blushing bride), unprompted, unexpected and uninvited(albeit not unwelcomed), grabbed then kissed me more passionately than I might ever have been kissed before or since. (I offered scant resistance.) So I suppose whilst the number of healthy years is important we should also factor what we can cram into them.

[RetireJapan]

I'm an 8. I'm aiming at 10 but will need a LOT of stretching.

Unbelievably, I think I got 8.5 (lost control slightly on the way down, need one hand to get back up again).

Not seeing a path to 10. Maybe 9 if I keep working on it

[captainspoke]

...lycra clad aberration of a middle age man. ...

The abbreviation for that is MAMIL. (tho at 72 I need a substitute for 'middle')

[banders]

I agree that you shouldn't think about the (J) pension in terms of ROI, but as a safety net in your frailty. I also agree that if you can't afford to delay it, then don't sweat it. It's not that big of a deal. Choose one.

[beanhead]

...lycra clad aberration of a middle age man. ...

The abbreviation for that is MAMIL. (tho at 72 I need a substitute for 'middle')

i suggest PAMIL