Means testing State Pension

[CuriousMariette]

Do you think the time has come for this to be introduced? I don’t think the current system is sustainable as many people are living too long. I know it’s not fair and would be political suicide but Pensioner’s didn’t even suffer a 80% furlough during lockdowns. I say this from a place of having “paid in” as people say for 30 years plus already and would likely not receive a State Pension in this scenario.

I can see raising the age was sensible and it might have to go to 70 to keep it a decent amount.

life expectancy is apparently going backwards.

@BigYellowHat

No way. I’m not paying in for 30 plus years just so all the lazy cheapskates who can’t be bothered to work get my contributions. If I’ve paid in, I’m having it thanks very much. And before anyone accuses me of it, yes I’m a Tory voting Daily Mail reader.

With bells on

Perhaps the new health & social care levy which pensioners will have to pay should be a higher % for wealthier people

No problem, so long as I stop being taxed (and receive a refund for my contributions to date).

@monfuseds

You have to have 35 years of national insurance contributions for full state pension, that is qualification enough.

Young people who are looking at a state pension age of 68 (despite unlikely to live longer) will end up paying far more than 35 years.

Not just young people.

State retirement age is 67 for everyone now. I have worked for 40 years and still got 10 to go until I receive state pension!

I think the government could look after its elderly if it didn't have to look after the young so much.

how so?

Most people have SFA, means testing the pension wouldn't rise muchas you might think, unless set very low.

But a better idea would be to remove the tax free status of ISA's now used by the wealthy to avoid paying any tax on investments.... each year take 20k from your investments & its income, put in iSA, than draw down from ISA... all tax free 0% its called a wrapper.

1000s have become ISA millionaires over the last few years, using S&S isa's.

This would effect me but everyone should pay tax on income.

CGT should also increase in my opinion.

I've worked since 14, paid ni since I was 16, won't get state pension till 68 (at present, will prob be older!) So I'll have paid in for over 50 years, and will get nothing? Absolutely no! Even less of an incentive to save and have a private pension.

Well so many late 50s/early 60s women are being sliced and diced from every direction at the moment, maybe there could be other areas that could be looked at to save money - the State Pension is all some of us have to look forward to when we can get it.

Whilst many of my age might well have benefitted from being a 'baby boomer' or whatever, not all of us were, count the ones that remained fiercely indepenent and unwilling to embrace the shackles of our sex in the 1970s amongst them; not all of us were writers or journalists, just young women who broke through various
barriers at a grassroots level.

Making it real just by doing it, rather than declaring any right to do it. And some of us remained single and unsupported, etc, etc - most didn't though.

Hack away at something - just not the State Pension - I've just got to keep scraping by whilst caring for my autistic adult ds for another 8 years, I''m 59.

Unless, like Yosser Hughes, you'll "Gissa Job", but so far, it seems I'm on the Scrapheap too.

Do people think today's 20 & 30 yrs old will receive a state pension? The way things are going I don't even see the NHS existing in its current form in the next 5 yrs.

It’s just young workers subsidizing a generation that designed a system to benefit themselves

So the state pension has only been around as long as the current generation receiving it? Don't think so.

You don't need to means test the pension.Just not raise it in line with inflation. That'll claw it back automatically.

Obviously it will disproportionately affect the less well off. But as that's official government policy, then it seems the fairest way.

By the time I receive my pension, if I live that long, I will have paid 48 years of contributions.
I really hope the system will not be changed so I receive nothing at all.

The figures are showing that average life expectancy isn’t actually increasing as projected and could well decrease. Unhealthy lifestyles and reducing living standards will achieve what you suggest without doing anything!

No for most of the reasons mentioned above.

Also, wouldn't it be a huge cost to implement?

Pendioners would have to submit accounts regularly which could be very stressful and whole new branch of the DWP and associated software would be needed surely?

Not sure of the figures but maybe (like winter fuel allowance) it's not worth the cost of administration and upheaval.

What about those who die before reaching pension age ? It's not given back to the family !

Precisely this. My Dad died two years after his retirement age, after paying in for 50 years. That goes for many other people I know who died too young. My mother struggled on a single pension. No private pension to fall back on. Good job she had 3 kids to top her up.

Fine, but I want a proportion of the contributions I’ve made to date to be refunded so I can put them in my private pension.

That's terrible @FruitMelange

No. I remember some research from when I was back doing my masters which generally showed that socially once any type of benefit becomes means tested overall society support declines over time leading to further cuts for those who need and benefit from it the most. Can't quote where it was from but it stuck in my head for a long time

Absolutely no. For all the reason stated above.

But this comment made no sense at all

Pensioner’s didn’t even suffer a 80% furlough during lockdowns. I say this from a place of having “paid in” as people say for 30 years plus already and would likely not receive a State Pension in this scenario.

So you want it means tested for only people claiming now? Because those people that were furloughed, will eventually be at a pensionable age. Those that were furloughed shouldnt be means tested?

What about the people who werenr furloughed but held companies together while others were furloughed? Care workers? Postal workers etc. You want to remove pension from people who are too old to change their financial position and everyone else. Because people were furloughed?

How is universal basic income supposed to be funded?

Most pensioners who have some sort of private / work pension in addition to the state pension pay INCOME TAX.

A lot of pensioners DO pay tax. The state pension is added to income from private pensions and investments, employment, savings interest etc and if it is above the personal tax allowance then you pay tax (some of the private pension might be tax free) at the lower or higher rate depending on your total income. So it is kind of "means tested" already.

That would make it incredibly complicated and so expensive. Terrible idea.