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.

@user1497787065

I'm reading the post that those, for example, Alan Sugar, who would automatically receive state pension and don't need it will not receive it.

It does seem absurd that he receives state pension and a winter fuel payment.

Which he immediately hands back in tax. Do you think the state pension is tax exempt? If only.

@Grantanow I agree means testing can be very crude. I recall my Grandparents missing out on Income Support in their old age by 50p per week.
Which in turn cut them off from other help like prescription changes, glasses. Means testing can be very unfair to those just over the threshold.

Pension should remain universal.

@Blossomtoes - alan sugar doesn’t immediately “hand back his state pension in tax”. The highest rate of tax is 45% so at the least he keeps 55%. Abs like other pensioners he pays no NI thus saving himself a fortune on his colossal income.

This is not about Alan Sugar though but a general point that no reason elderly should have a hugely favourable tax regime and universal benefits. They tend to be the wealthiest group in society both in respect of assets and household income.

State pension is hugely expensive and no reason it should go to those who don’t need it

Give it to everyone then tax income which includes pension

This is how it works now. Pensioners pay tax on all income above the threshold (about 12.5k), just like workers do.

@Oldsu

Morningstarling appears to be of the "everyone else should pay to fund my lifestyle choices" ilk.

Higher earners will have paid more in National Insurance, so why would you pay them a smaller benefit?

A flat rate pension already favours the poor because they receive the same amount for a lower cost. Seems like a fair deal to me.