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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think pensioners paying NI is a step towards equality

208 replies

jnfrrss · 08/05/2018 08:11

Apparently it would raise 2 billion a year and help cover social care.

Mail comments are furious people, but isn't it a step towards a more equal society and taxing everyone more similar regardless of age?

Ni just seems like such an outdated system and in an ideal world it would all be rolled into one tax with income.

OP posts:
ShatnersWig · 08/05/2018 08:15

That's confusing.

Your thread suggests you think NI is a good thing and pensioners should pay it.

Then you say NI is an outdated system.

RicStar · 08/05/2018 08:17

There is lots of other incomemail that escapes NI like dividend / rental income. I would love to see whole scale reform of income tax and NI. Last time government preposed some small changes to self employed NI the press crushed them. I don't think we will see it. Nor do I think it should be pensioner only targeted.

GummyGoddess · 08/05/2018 08:18

of course they're upset, they're been told that ni contributions pay for their pension. I doubt they would care that the government screwed that up as they have already 'paid'for the pension.

GummyGoddess · 08/05/2018 08:19

Appalling grammar and spelling there, sorry!

Original poster
jnfrrss · 08/05/2018 08:19

Sorry I mean in the interim pay it, untill ni is reformed.

OP posts:
checkoutchick22 · 08/05/2018 08:25

Sorry, I'm confused.... you think that pensioners who have worked most of their lives, paid tax, NI etc, should now pay it again, whilst collecting their (mostly measly, not enough sometimes to keep their houses warm) pensions???????

venusandmars · 08/05/2018 08:28

I think the problem with this suggestion is that it is those who are working beyond state pension age. This is often a group of people who are continuing to work because they have very low other pensions and are working to reduce their dependance on the state or family. I think the average earnings for women in this group is £12k-£14k. These are not the RICH pensioners, who will already have made pension provision and will have stopped working.

Systems for funding health and care need a radical overhaul, not an attack on the more vulnerable older people.

ImNotMeImSomeoneElse · 08/05/2018 08:28

People should not pay NI on pensions.

State retirement pension is paid based on what period have already paid in NI.

Most private pensions come from income that has already been subject to NI, so they would be paying NI on it twice.

Whether they should pay NI on employment income, that could be discussed. But as they are already in receipt of their srp, won't be getting smp, so their only potential benefit from it is ssp, maybe their rate should be much reduced.

checkoutchick22 · 08/05/2018 08:29

Ok, Sorry, I did slightly misunderstand...
Still think it would be counter productive though

Original poster
jnfrrss · 08/05/2018 08:29

Yes. This whole mess could have been avoided if state pension was pegged to life expectancy.

The position we have of being a pensioner for 30 years is very unsustainable.

You expect working people to pay more even though they are far woorse off and are highly unlikely to receive the same benefits???????

OP posts:
MrsJayy · 08/05/2018 08:33

I am not really sure what you are saying are you saying you want state pensioners to pay NI but not get a pension at 65/7 I am confused.

DesignedForLife · 08/05/2018 08:34

No I don't think pensioners should pay NI on receiving back the NI they paid when they were working. That makes no sense. State pension is a pittance as it is anyway.

If the government is so short of money maybe they should ensure huge business actually pay their tax.

Original poster
jnfrrss · 08/05/2018 08:38

Me?

I'm saying they should pay ni.

Because they didn't peg the state pension to life expectancy in the past. State pension should have been linked to LE. But seeing as they didn't someone has to pay for it.

OP posts:
AlbertaSimmons · 08/05/2018 08:41

I think the suggestion is that people who continue to work beyond state pension age should pay NI on those earnings, which they don’t currently. So for example you could have a 40 year old working alongside a 68 year old doing the same job, earning the same salary but the 40 year old gets to keep less of that income.

MrsJayy · 08/05/2018 08:42

So you think people are living too long ? What do you want them to do if they are getting a state pension it really isn't much and if they have a works pension then they have paid into it and some of it is taxed.

ilovesooty · 08/05/2018 08:43

So you think that people who continue to work beyond pensionable age, usually because they have very low incomes, should continue to pay NI contributions?

Well your controversial thread for today certainly follows your usual defined agenda.

UpstartCrow · 08/05/2018 08:45

Its this dog in a manger attitude that's wrecking the country, as it turns us against each other.

Anythingforacatslife · 08/05/2018 08:46

Life expectancy may have increased but that doesn’t mean that people are fit to work. Older people have more illness and conditions associated with aging, they are continuing to live longer despite this because of improved medical care.

I don’t disagree though that working people of any age should be paying NI. It obviously pays for far more than just pensions and people should continue to contribute to those costs.

chatwoo · 08/05/2018 08:49

Presumably you mean that people working beyond the state pension/retirement age, should still pay NIC on their earnings?

And not that people who are drawing from their state pension, should pay NI on that?

Context context context.

ilovesooty · 08/05/2018 08:54

chatwoo I wouldn't be surprised if she meant the second one as well. It's her particular hobby horse.

Original poster
jnfrrss · 08/05/2018 08:56

It's not my plan it's the heath secretary and a think tank Confused

Taxing people the same for doing the same job helps inequality.

OP posts:
echt · 08/05/2018 08:57

Have you got a link for this?

MrsJayy · 08/05/2018 08:58

Those bloody pensioners living it up bleeding the country dry it is a disgrace Grin

RB68 · 08/05/2018 08:59

NI is capped so those getting dividends and rental incomes are more likely higher bracket earners paying 40% tax but also likely to have already paid the max NI. I would like to see those on the much higher brackets earnings paying increased NI - that is I think better than charging those with low incomes (ie pensioners) NI for small amounts.