Retirement

[Otterhound]

When did the modern concept of retirement begin ?
What was the purpose ?

[ewalling]

In the UK, they began at the beginning of the last century. I imagine that they were introduced as part of a collection of measures founded upon the principles of extending a dignified and decent existence to all the nation's citizens, rather than just a privileged few. This included government-subsidized education, healthcare and unemployment benefits. In this case, the pension meant that the elderly were not forced to work till their last breath or end up in the workhouse.

[Glennwillow]

Originally Posted by ewalling

In the UK, they began at the beginning of the last century. ... In this case, the pension meant that the elderly were not forced to work till their last breath or end up in the workhouse.

I like the sound of that. 7.376 months left for me, but who's counting?

- Glenn

[Silly Moustache]

I cannot speak for countries other than my own, but "retirement" was effectively established in the UK when State pensions were established in 1909 - for those reaching the age of 70. It was called "The Old Age Pension".

In 1925 a new kind of pension was introduced based on contributions paid at work by employer and employee. It was paid from age 65 without a means-test. A married couple's rate of pension was paid if both spouses were aged 65 or more. That meant many men had to wait for some time after they reached 65 to get the higher rate for their wives.

In 1940 pension age for women was cut to 60 to try to ensure for most couples that the married rate would be paid as soon as the husband reached 65.

From 1948, men had to retire as well as reach 65 to claim the new Retirement Pension paid under the National Insurance scheme. If their wife was still under 60 when they reached 65 and retired they could now claim a dependant's addition for her.

In 1995 following pressure from Europe, the Conservative Government was forced to announce plans to equalise state pension age for men and women. The timetable was the most relaxed possible and would raise pension age for women to 65 slowly from April 2010 to April 2020.

In 2007 - the Labour (Socialist) Government passed a new law to raise state pension age to 66 between April 2024 and April 2026, then to 67 between April 2034 and April 2036 and to 68 between April 2044 and April 2046.

My wife received her state pension from Age 60, I had to wait until I was 65.

At one time state pension was dependent upon you NOT continuing to work. I don't believe that to be the case any more, although if you work, you must pay National Insurance contributions even if they will not benefit your pension.

One still has the option to delay taking your state pension until age 70 if you wish, which earns you an enhanced monthly payment.

My private pension was payable from age 53 and within certain parameters I could choose how much I draw down. Nowadays those parameters have been removed.

That, to the best of my knowledge is the situation in the UK.

[Acousticado]

I'm not sure what you mean by modern concept of retirement because I believe that the approach to retirement has seen a shift in recent years.

If you're meaning the approach where typically a man worked for many years, often in a union or professional environment having contributed to the company pension plan, then "retiring" on a reduced fixed income to never really work again, that likely goes back to the late '50s, or even earlier when it started.

If you're meaning the more recent approach where men and women are viewing "retirement" as a new beginning to experience all sorts of new things, some which pay, start businesses, volunteer, travel, it's hard to say when it began, but probably in the '90s.

As for the purpose, I guess modern retirees simply no longer believed putting up one's feet and moping around the house not doing much waiting to die was the right way to approach the twilight years.

That's my take on your question.

[BernebeM50]

In Canada I believe that the Old Age Pension has been raised to 66 and the Canada Pension is at 65 still with a possible early retirement at 60 with reduced benefits (probably about half). I am hoping to retire in 5 years at 60 on my school pension and early Canada Pension. I am also collecting rent on a rental property so I should be able to make a go of it.

[SMan]

I think it came about sometime in the 19th century so that people didn't work until the day they died.

We never counted on SSI but rather investments and a company pension for retirement. I feel fortunate to have been able to "retire" so early but still stay quite busy, have time to help others, and best of all we can set our own schedule. Now 60 I am happy to be done with having a "job".

[ewalling]

Originally Posted by Acousticado

As for the purpose, I guess modern retirees simply no longer believed putting up one's feet and moping around the house not doing much waiting to die was the right way to approach the twilight years.

This impulse to keep on go-getting to the bitter/sweet end may be partly linked to our increasing sense of outrage that we even have to die at all. I mean, whose idea was that?? Hey, look at me! I'm leaping onto this Harley just like I did when I was 25 .... Arrrrggh! Oh, no! Someone help! I think I've dislocated my coxis!

Seriously, it's great to stay reasonably active, but the concept of retirement that our parents grew up with embraced the unavoidable truth that we're usually not capable of doing the things that we once could, that we forget things more quickly, get tired through little effort, and are prone to an alarming array of age-related ailments. 'Putting up one's feet' may be the most comfortable and the wisest option in many cases.

[jpd]

Originally Posted by Otterhound

When did the modern concept of retirement begin ?
What was the purpose ?

Otter........in Germany with Kaiser Wilhelm. In a radical move he declared at age 65 (?) workers would be retired because a problem was developing......the youth of Germany could not break thru the stranglehold that the older workers had on the career stage. This concept found a huge following as time went by......draining quite a few State run retirement funds!

[harmonics101]

I've been retired (doing what I want) ever since I landed my last job, it's an added bonus I get paid for what I do,

H

[KevWind]

Originally Posted by Otterhound

When did the modern concept of retirement begin ?
What was the purpose ?

This NY times article talks about it.

Oh and note to "jpd" this article is saying it was Chancellor Bismark in Germany

http://www.nytimes.com/1999/03/21/jo...n-to-aarp.html

[kydave]

Originally Posted by KevWind

This NY times article talks about it.
http://www.nytimes.com/1999/03/21/jo...n-to-aarp.html

Great!

Thanks for that, Kev!

[jpd]

[QUOTE=KevWind;4579274]
Oh and note to "jpd" this article is saying it was Chancellor Bismark in Germany


I knew it was one of those old timers

[Mr Fixit eh]

Originally Posted by BernebeM50

In Canada I believe that the Old Age Pension has been raised to 66 and the Canada Pension is at 65 still with a possible early retirement at 60 with reduced benefits (probably about half). I am hoping to retire in 5 years at 60 on my school pension and early Canada Pension. I am also collecting rent on a rental property so I should be able to make a go of it.

Good for you, I'm jealous.

Eligibility for Old Age Pension has changed for those born in 1958 and later.

Starting in April 2023, the age of eligibility for the Old Age Security pension and the Guaranteed Income Supplement (GIS) will gradually increase from 65 to 67 over six years, with full implementation by January 2029. This change will affect people born in 1958 and later.

From the Service Canada website

1927 was when a state-run, non-contributory pension was introduced, but private industries started offering private pensions from the middle of the nineteenth century. I found a very interesting article here

[BrunoBlack]

Originally Posted by Glennwillow

I like the sound of that. 7.376 months left for me, but who's counting?

- Glenn

And for me --- 14 days and (who's) counting? I think retirement has changed from my parents and grandparents time (thinking social SECURITY) for sure. They thought no more work for the last few - several years of their lives. I think my generation who are living longer and generally have more resources, looks at it more like a "next chapter" in a book.