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State Pension Fund News Coming.

As a pensioner I struggle to justify a triple lock increase in my pension which will inevitably be partially funded by many people who are facing very real financial problems of their own. And while I am about it I would also scrap bus passes, free TV licences and winter fuel payments and stick the money (plus a bit extra) on the basic pension. It would give pensioners the ability to spend their money on their priorities, it would reduce administration costs and some of the cost would be recouped through taxation of those pensioners who are well enough off to pay tax.
 
richardkendell said:
As a pensioner I struggle to justify a triple lock increase in my pension which will inevitably be partially funded by many people who are facing very real financial problems of their own. And while I am about it I would also scrap bus passes, free TV licences and winter fuel payments and stick the money (plus a bit extra) on the basic pension. It would give pensioners the ability to spend their money on their priorities, it would reduce administration costs and some of the cost would be recouped through taxation of those pensioners who are well enough off to pay tax.
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Are you saying that the current level of State Pension in the UK is adequate?
 
Snufkin said:
Fair point but it seemed implied. I still feel that any dismantling of the triple lock will erode the State Pension further which is already measly by most European standards.
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I said " (plus a bit extra) on the basic pension". Increase my pension by all means but I struggle to find the right words to explain to a young couple why they should pay more taxes to improve my standard of living.
 
I.D.C. said:
Sunak prepares to break triple state pension pledge - FT. Myself and good lady have been talking about this subject for a while wondering not if but when it will happen. Work till you drop.
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The money to fund the UK recovery has to come from somewhere and I'm fully expecting various taxes to rise, and benefits (including pensions) to fall in real terms.
As McC suggests, heaven help those who have to survive only on state pension for the future.
 
TheDecameron said:
They’ll means test it eventually.
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I’m certain of it. Technology allows HMRC to know your overall net worth and income with ever increasing accuracy. Over a certain figure and you can look after yourself. It’s daft paying state pensions and other benefits to people who don’t need them. Think about it, as a private individual, you’d need a pot of circa £200K to fund a state pension. There will be millions who don’t pay in that much income tax / NI in their lifetimes. Unaffordable at a universal level.
 
Ponty said:
I’m certain of it. Technology allows HMRC to know your overall net worth and income with ever increasing accuracy. Over a certain figure and you can look after yourself. It’s daft paying state pensions and other benefits to people who don’t need them. Think about it, as a private individual, you’d need a pot of circa £200K to fund a state pension. There will be millions who don’t pay in that much income tax / NI in their lifetimes. Unaffordable at a universal level.
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But if I’ve paid my contributions fully, then why should I not get what was intended? It could have been part of my financial planning, for example?
 
Andrew C! said:
But if I’ve paid my contributions fully, then why should I not get what was intended? It could have been part of my financial planning, for example?
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That's why they'll never means test 'can have / can't have'. What they will do is let the basic state pension devalue in real terms over the years and introduce a means tested 'booster', let's call it 'pension credit'.;)
 
Andrew C! said:
But if I’ve paid my contributions fully, then why should I not get what was intended? It could have been part of my financial planning, for example?
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Plenty of things in life don’t go as intended. You might need to adjust your plan, like millions are having to do right now, for example. Life isn’t all plain sailing and guarantees. Govt could taper it out, say over 5 years so there was no cliff edge. Bottom line is, if you weren’t eligible due to the wealth criteria, you won’t exactly be doing without.
 
Five years!
That is one of the most stupid things I have ever read on here.
Tell people at 18 now you will do it when they reach retirement age.
Give people time to plan for alternatives.
That might work.

Then of course explain that they will still have to pay NI all their working lives to pay for all the pensioners until then.
Because that’s how it works.
Good luck.
 
Ponty said:
Plenty of things in life don’t go as intended. You might need to adjust your plan, like millions are having to do right now, for example. Life isn’t all plain sailing and guarantees. Govt could taper it out, say over 5 years so there was no cliff edge. Bottom line is, if you weren’t eligible due to the wealth criteria, you won’t exactly be doing without.
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They could try, but there would be a fairness test in the courts - people have no opportunity to save, it's just not possible to save the equivalent of the state pension over five years on any kind of normal income.
 
gavreid said:
They could try, but there would be a fairness test in the courts - people have no opportunity to save, it's just not possible to save the equivalent of the state pension over five years on any kind of normal income.
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That’s the point, I’m not suggesting it was removed from people with normal income / net worth. There are plenty who receive state pensions who wouldn’t miss them if taken away.
 
Here we go...

Pension is not a benefit, it has been earned.

All old people have been young and most have paid their taxes, some of which was used to fund pensions for old people at that time. I don’t recall complaining about it.

Wealth criteria. What the hell is that? Where do these bloody tories get their shite ideas from?
 
Ponty said:
I’m certain of it. Technology allows HMRC to know your overall net worth and income with ever increasing accuracy. Over a certain figure and you can look after yourself. It’s daft paying state pensions and other benefits to people who don’t need them. Think about it, as a private individual, you’d need a pot of circa £200K to fund a state pension. There will be millions who don’t pay in that much income tax / NI in their lifetimes. Unaffordable at a universal level.
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I thought the point of it was that it was a state pension, not a personal pot. You seem to be suggesting that if your contributions into the system don't total your receipts from it you should loose out? What about all the indirect taxes people will have paid though there lives, fuel tax, tobacco tax, VAT, This country seems to have less of a social care attitude with each passing year.
 
dweezil said:
Remember it's taxable so any rich pensioners will pay 40 to 60% tax on their pensions.
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Good point. I’m still expecting a total overhaul of the system as technology and big data can actually means test without it costing more to administer than it saves.

It’s fair to say I’m generally right of centre. Here I am suggesting the wealthy receive less and I get lambasted! I’m guessing there must be a lot of rich pensioners here!
 
The idea of means testing a universal benefit is repugnant. Tax the bankers, tax dodgers, corporations and then do it again. A lot of big companies have already stolen a huge chuck of peoples pensions in order to appear more profitable to the City - then used the cash to pay dividends to the rich...
 
dweezil said:
Remember it's taxable so any rich pensioners will pay 40 to 60% tax on their pensions.
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I’m happy to that.

Ponty said:
Plenty of things in life don’t go as intended. You might need to adjust your plan, like millions are having to do right now, for example. Life isn’t all plain sailing and guarantees. Govt could taper it out, say over 5 years so there was no cliff edge. Bottom line is, if you weren’t eligible due to the wealth criteria, you won’t exactly be doing without.
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I have done. I’m not that naive. But there is a point where your contributions should be worth something to you in terms of planning. The crux is where that point is.
 
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