Parental income

[glassdarker]

So, context, just seen 10% pension increase.

At same time I've been talking about doing something jointly with my mum and dad. So as a result we talked about income. My parents worked in manual/ administrative roles, neither went to Uni, but worked hard all their lives. Retired ten years ago, own house and car. I appreciate that many pensioners won't be in that position.

They both have small final salary schemes (one less than 10k, one less than 20k). They both get full state pensions. After normal bills their disposable income is a 2k a month. 2k a month ! I am blown away !

But bloody hell we are both higher rate tax payers and we are counting every penny (though we have a lot of extra spend due to a disabled DC). But AIBU to be a bit shocked by the difference in how we are experiencing the cost of living crisis ? I am glad they are doing OK and we don't need money from them but I am still a bit jaw dropped by this... and fantasy spending even 1/4 of that monthly disposable income !

Yes exactly!

Yes i was a higher rate tax payer for more than 3/4 of my career.

Ive reduced my hours now to stay under the higher rates.

State pension is a benefit. A benefit that is paid by current taxpayers to some very wealthy people. But pensioners vote and vote Tory so we will keep seeing wealth transfer from poor working age people to rich pensioners.

In your last post you claimed to be earning £6,000 a year and to be impoverished by paying NI. Make up your mind!

in either case you admit to not being a net contributor and even by choice. You can’t also claim to be entitled to benefits because you paid in.

The problem is that when the state pays a lot of money to rich pensioners, it has less money for everything else. While you might be happy because that benefits you and your family I would rather have a fairer system.

I would lose out on means testing of pensions and I have been a net contributor pretty much my whole working life. But I would rather we spend money where it’s needed rather than just giving it to me.

The right for it to be paid is the reasonable expectation that it was deducted from salary, on the proviso that i would get something in return.

I haven’t see anyone reference ‘a pot’ that exists. I think you are making some very broad incorrect assumptions about what people think.

i clearly stated ‘early’ in my career i earnt £6k.

Please read all the post - not the bits that suit your argument.

There’s no right to any benefits - contribution based or otherwise. There was no “pension payment” deducted from salary or any pension scheme or contract in respect of state pension. Many people pay tax and NI - it does not give any rights to benefits or anything else.

I would lose out on means testing of pensions and I have been a net contributor pretty much my whole working life. But I would rather we spend money where it’s needed rather than just giving it to me

You do know you can just not apply for SP, don't you? you don't have a make a public song and dance about how you don't need it and how bad you feel about accepting it.

I agree OP. It is crazy.

Of course everyone deserves more money but there are taxes-offs. Supporting the triple-lock is supporting cutting nurses pay in relat terms to give money to the richest demographic (pensioners) who have much higher disposable income than working age adults!!

Frankly, young working families need the money far more.

So you earned very little “early in your career” and are again a net gainer now. Yet you feel entitled to a lifelong pension paid for by the younger generation (that likely won’t be there when they retire themselves). Does that about cover it?

We’re not going to find a better NHS though just on my state pension. We have to stop paying state pensions to all who don’t need it to boost public services.

It’s not about me it’s about fairness and selfishness. It’s not ok for the rich pensioners to gloat about “rinsing” the taxpayer when there is so much poverty in working age people and our public services are on the brink.

Fund a better NHS not find

I'd rather my parents didn't struggle. The state pension gives them £283 each a fortnight. I'd rather know they can put the heating on, feed themselves, etc as both worked into their 70's. Why is this shocking to you? Are you wanting them to struggle? They have no chance of getting employment, and shouldn't have to.

Me? I don’t want your parents to struggle. But I don’t think we should pay state benefits including pensions to rich people. We can’t afford it.

May i refer you to the governments website regarding national insurance.

www.gov.uk/national-insurannce

It clearly states that NI is a contribution based method to qualify for state pension and is deducted from salary. So i’m not sure why you think this isn’t the case.

Danvers - I'm not sure what your points are about , i think I might even agree with some of them, but not sure what each post relates to. So, firstly in relation to my pp that you responded to - I'm not sure how the DPs purchased their car, nor how anyone does really, and how that's relevant to my post.

YANBU

My parents are in a similar situation. They have lots of disposable income while we scrape by without the prospect of the bummer final salary pensions that they're benefiting from.

But our parents are only reflective of a portion of pensioners.

Personally I would have rather seen the same amount of total money spread across lower income pension households. So the people that really needed it got an above inflation rise.

We’re not going to find a better NHS though just on my state pension. We have to stop paying state pensions to all who don’t need it to boost public services

The word 'need' keeps cropping up here a lot, doesn't it?

Haven't the faintest idea what you're on about, sorry.

Having worked for 40 odd years and contributed into the state pension over that same period, yes i feel entitled to it. How much i should get is up for reasonable debate.

I also believe that the current method is unsustainable, it’s a ponzi scheme and it wouldn’t be permitted for a commercial company to operate in such a manner.

Nor me you so let's agree to mutual confusion :)

A question for those saying that state pension shouldn’t be paid to those who don’t need it. At what level of income/wealth should it stop? Should pensioners have to get involved in equity release etc? I am in receipt of state pension and occupational pension. My annual income is £18,000. I am not moaning, it’s perfectly adequate, although I wouldn’t like my income to be much less. I do own a house outright. Should I have to raise income from it? I do, btw, agree that families with children and mortgages are worse off.

I smell a name change on this thread. Perhaps that poster was too predictable with the last one.

Great question.