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.

Never put in the 'pot' but still takes out of it. That's what needs to be stopped!

There will also be some in society that as that pp said need to be carried. You suggest we leave them homeless & starving?

There is a huge issue coming soon with a rapidly ageing population and population decline around the world. The model of many young providing for a few old is going to be turned on its head.

Exactly but people want to pretend it's not happening.

No way

And there is no pot lol 😂

Honestly it's such a backwards way of thinking of it.

There are only liabilities paid out of tax income and borrowing.

The answer to OP's question is No.

But we do have to adress the issue (and costs) of an ageing population. RADIO 4 had an interesting programme called Rethink: Population. Worth listening to.

The op on this thread is about stopping people who have funded pensions getting pensions, so fund others but get nothing is it not?

I thought she mentioned means testing. I don't know what the solution is but the current model is not sustainable.

I think there should be means testing but at a VERY high level such as £100k.

There are only liabilities paid out of tax income and borrowing.

yep

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

Bollocks is it ! You pay until you retire , plenty of 60+ still paying.
Also you don't stop paying once you've reached your 35 years of contributions , you carry on until you retire.

@Ylvamoon I will check it out.

Cost of means testing is very high and would not make economic sense in this context. There are too many pensioners and the tax system already balances things out.

Wealthy pensioners still pay income tax and many continue to pay far more into the system than they take out.

That wouldn’t be fair. I pay well into 6 figures tax a year - why should I be paying for everyone else’s pension and not get one myself ?

I pay well into 6 figures tax a year - why should I be paying for everyone else’s pension and not get one myself

you are paying 6 figs in just tax & you are worried about not getting your state pension?

Get rid of it entirely?

Give people the option to take the monies saved and pay that into a private pension, those that don't will end up destitute but thats a price worth paying, it will also encourage a spirit of independence.

Similar is already happening with the NHS, anyone needing an op for urgent personal reasons e.g. their job, has to pay '000s to get it done.

We've voted Tory for the last 12 years and will doubtless do it again in 2024/5 so its clearly what we want.

You’d be giving people absolutely no incentive to pay into their private pensions, what would be the point, paying the pensions of those who didn’t save

@Fr0thandBubble

That wouldn’t be fair. I pay well into 6 figures tax a year - why should I be paying for everyone else’s pension and not get one myself ?

Good point and sounds like you really need that 8k p.a. too.

You’d be giving people absolutely no incentive to pay into their private pensions, what would be the point, paying the pensions of those who didn’t save

It would make me save more into my private pension. I already do as assume I won't see the state one.

Nope. I have worked all my life to get a pension at the end of it

Why should I continue to work to get nothing at the end of it when some, who have never worked through choice, will get one

I paid into state system.for 35 years do when I am 67 I will get full state pension. I also paid into Teachers Pension scheme for almost 30 years although some part time when children.small. I paid into a third pension and have £63k sitting in there and have already drawn down 25 per Percent of that. When I am 67 I will only get about £20k so will have to make it stretch. Without state pension I would be screwed. No point being in retirement if you cannot afford to have nice holidays, finally in term time, and pay for your activities. Luckily my dh has a much better personal pension than me.

Onion patch you are right, pensioners still pay income tax if total income above tax threshold.

I despair when reading this. So much wrong with it. I know of some people leaving in council houses and having saved for houses back home abroad whilst never downsizing their council houses when their children leave. Getting benefits and working for wages in cash and sending the money to their families in other countries. In short there many people that while they are based here and never contribute much.pretty sure they would be in line to get their pensions. While other for paying taxes could not save for a private pension and top of that would be at risk of not getting a state pension.

Having only been able to work for 16 years before needing to give up work to become a full time carer on the pittance that is carers allowance, I have been looking forward to receiving my state pension as the only perk to the 22 years I worked day and night for very little whilst saving the Government thousands. So forgive me if I don't wish to forfeit my pension just because DH managed to keep working in a half decent job - albeit it not as advanced in his career as he could have been due to our caring commitments. So no I don't want pensions to be means tested - I've missed out on years of paying into a private pension because I couldn't afford to due to having to give up my job.

My gran receives a little over 1400 a month in her pension and whenever she mentions that I experience a little fury each time (not for her obliviously)

She doesn't get that from a state pension. Perhaps her husband had a pension that benefited her when he died. That's fairly common in her age group I imagine.

We own our house, which we've lived in for 40 years. If my husband dies, I can't afford to keep it. I don't have a personal pension because we have a disabled child and I have had to stay home and care for her. Didn't have the forethought to pay into a pension scheme for me.
So if he dies I'll have to up sticks and move from my home of 40 years.
I'm willing to bet that this new idea of means testing would cut my income even further. Even though I've saved the state millions of squids by caring for my disabled child at home unaided, for all these years.

It would be too complicated to means test all these complicated situations, so for today, Curious Mariette, I'm out.

@JanuaryBluehoo Lots of poorer older Londoners have million pound houses but no private pension as they weren't rich at all, just bought when it was cheap. A terrace house where I live is £1 million and it is not large at all!

Yes I could sell my flat and move to the north after I retire but that is probably not good for the northerners...also I don't think I would ever be able to afford more than a 3 bed flat so there isn't much to downsize to in the same area....in numbers terms, the number of crazy rich pensioners driving Porsches is probably not huge.

Again the Australian system works very well. People in need get a pension and others privately save for the event of old age for which they have had their entire lives to prepare for.

I do think though that of course this should not be imposed on people already in the system. So it’s a big ship
To turn around