Retiring at 70 in UK? You're cooked!

Описание: Life in the UK: The government of UK has increased the retirement age to 68. This affects all African migrants in the UK and USA as they would have to work 35 years to qualify for full benefits even if they want to move back home to Africa some day. Waking up each morning to go and enslave ourselves at our low wage paying jobs just to survive is a tough life in the UK for amidst remittances awaiting back home.

They migrated to the UK on skilled worker visas, student visas and Spouse visas. The cost of living crisis(rent, mortgages , utilities, car payments and student loans ) traps them in an endless cycle of pay-check to pay check with no financial freedom but to hope for a pension when they’re 70 years old.


Let's dive into a critical look at the UK pension system and explore why some people, including both long-term UK citizens and migrants, might feel it doesn't always offer the best long-term benefits. It's not about calling it a "scam" in the literal sense, but rather understanding the systemic challenges that can make it feel less rewarding than expected.

1. The State Pension: A Modest Safety Net with High Hurdles
The UK's state pension is often highlighted as one of the lowest relative to average earnings among developed nations. This means that for many, it provides a basic safety net rather than a comfortable retirement.
Low Relative Value: Compared to countries like Iceland, the Netherlands, and Denmark, the UK has a significantly higher rate of pensioner poverty. This suggests that relying solely on the state pension can be a struggle.
The 35-Year Gauntlet: To receive the full new State Pension, you need to accumulate 35 qualifying years of National Insurance (NI) contributions. If you have fewer years, your pension will be reduced, or you might not qualify at all if you don't meet minimum criteria.
Impact on Migrants: This is particularly challenging for migrants who arrive in the UK later in their careers or who might leave the UK before reaching the 35-year mark. They could contribute for years and still receive only a partial pension, or nothing, especially if they move to a country without a social security agreement. It can feel like paying into a system without reaping the full rewards.

2. The Rising State Pension Age: A Moving Target
The state pension age isn't static; it's been increasing and is projected to rise further. This is a common policy lever used to manage the costs of an aging population.
Reduced Payout Period: For individuals, a rising state pension age means contributing for longer and potentially receiving payments for fewer years. This effectively reduces the overall value of your contributions.
Disproportionate Impact: This trend can hit certain groups harder, particularly those in physically demanding jobs or with lower life expectancies. Migrants often fill these roles, making them more vulnerable to these changes.

3. The Shift to Individual Risk: Defined Contribution Pensions
The pension landscape has dramatically changed over the past few decades. There's been a significant shift from "defined benefit" (DB) schemes, which offered a guaranteed income in retirement, to "defined contribution" (DC) schemes.
You Bear the Risk: In DC schemes, the individual takes on all the investment and longevity risk. You decide how much to contribute, how to invest, and how to draw down your funds. This requires financial literacy and active management, which many people aren't equipped for.
Under-Saving Concerns: Studies show that a significant portion of workers in DC schemes are not saving enough. For example, 61% of middle earners in DC schemes save under 8% of their salary, far below the ~15% recommended for a comfortable retirement. This means many could reach retirement with insufficient funds, despite having contributed for years.

In Conclusion
While the UK pension system isn't a "scam," these structural elements can lead to a perception of poor value or inadequacy for many. The low state pension, stringent contribution requirements, rising pension age, and the shift of risk to individuals in private pensions all contribute to a complex picture where long-term benefits can feel uncertain.


African migrants in the diaspora need to buy lands, properties in Africa , buy assets , create businesses and projects that will secure our future and that of the unborn generation. Investment and wealth creation in Africa is the way to go. Investment will drive in cash and cash will generate financial freedom and independence we require before age 67. We need to plan our retirement now, not tomorrow or next week. The time is now. Lets do it. We can. Financial freedom is the long term goal.

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