We should remove the triple lock pension

[SoloD]

For years now pensions have been rising the fastest of inflation, average earnings or 2.5% at a time when the opportunities for younger people have been drastically reduced.

We are now causing horrific damage to the economy principle to protect the older generations. And then there is the unfolding Brexit disaster.

Does anyone agree that the degree of unfairness is getting too great and the older generation need now to be fair and stop making demands at such cost to the rest of us?

We have already seen the women who will collect their state pension this year work an extra 6 years from the date they thought they were due when they started their working lives.

But that’s 6 years extra in the job market. Is your next move going to be to blame them for 6 years of taking a job that could have gone to a younger person?

And those people are already losing out. The Contributory rate used to be relatively higher and the basic rate relatively lower.

And private pensions are currently plummeting in value, and for many on the brink of retirement may not bounce back in time.

thegcatsmother
You mean the £0.19 pence a week rise my Mum received this month?

I hope your Mum uses her 19p wisely gcat. I've been out on the town dancing and drinking every night, it's amazing how far you can stretch 19p when you're in lockdown.

Any other 'ism' is quite rightly instantly dealt with on this forum but not ageism.

Now we know what you think of oldies, OP, I'm tempted to tell you what I think of you but have better manners.

If I ever see your name on a ballot paper don't expect an X from me. People are responsible for their own lives and whilst some of the elderly have been frugal and have ensured a 'comfortable' old age. Some youngsters are not careful with their money ( £800-1000 mobiles) and then whinge that they are having a hard time of it.

You reap what you sow in life.

YinMnBlue you are so right about private pensions, I was going to take mine this year when I was 65 as that was always the age I could have taken it, I decided against it as of course I still work and although the tax free lump sum would have come in handy this year I didn't want to take an annuity as all that would have done would be to make my tax bill higher, I was thinking of taking it next year, I am going to defer my state pension and carry on working, any extra tax I would have to pay would be compensated by not having to pay NI, but it looks like I may have to wait a bit longer

So I both agree and disagree with the OP.

There’s a few issues here:

1. the size of the state pension and whether it’s enough for a pensioner

2. the increases applied to the state pension and whether they are too generous ie the triple lock

3. how long the state pension is paid for

It’s also important to note that the state pension is funded by the working population for the current pensioners. The NI conts you pay today do not go to your own pension, we support the generation above us.

I think number 1 is difficult to answer. Arguably for a pensioner who only receives the state pension it is not sufficient. For a wealthier pensioner with other income it’s probably fine. The government will never get this right as clearly one solution doesn’t fit everyone.

Number two is genuinely a serious issue. The intention of the triple lock when it was introduced was to close the gap between the working population’s income and the state pension.

The gap has now closed and the situation has reversed - the state pension is causing a strain on the working population. This is exacerbated by the size of the retired population (includes the baby boomers!) vs the working population and the wage increases the working population receive.

Number 3 I can see why people get annoyed about their state pension age moving but it is sadly the only solution. The state pension was never designed for pensioners to have 20-30 years in retirement where you can afford cruises and multiple holidays a year, it was intended to cover something like 10 basic years before you died.

A woman turning 60 now could easily live until she’s 90 and it is unsustainable to pay her a state pension for 30 years funded by the working population.

The benefits gained from improved life expectancy mean that we should work longer if we expect the state to support us.

A last issue arising from this point though is the amount of jobs available and the lack of retirements causing a lack of jobs at the bottom. What the solution here is I don’t know!!

An extra pensions fact for those with private pensions... you will be taxed on your pension as income when you draw it. This is entirely fair as you weren’t taxed when you paid in, and you weren’t taxed on the increases applied before retirement. It needs to be taxed at some point!!

You might be right at the moment, but one day you will also be old, and if all pension protection is fine, you will have even less than under the current structure. Time only goes forwards, unfortunately.