State Pension

[JollyPollysjolly]

my Husband is sure that by the time we reach state pension age (me 45, him 49) that it will no longer exist - or maybe when we reach 100 ha! Anyone with any knowledge that can add to this idea so I can argue back?

Well they "means test" the family allowance over £50k, the tax free personal allowance removal over £100k, free child care over £100k, plus of course everyone on universal credit or tax credits.

If you set the limit at the same £50k of income as for child benefit, only a small proportion would be affected and they'd already be higher rate taxpayers so "known" to HMRC and many would be already completing self assessment tax returns.

Depends on the threshold. A threshold of say £50k of income wouldn't impact those lower earners who'd only be saving a "small amount" into a personal pension.

Paying sick pay for a proportion of people aged between say 55 and 70 is cheaper than paying state pension for everyone from say 60/65 upwards. It's the least worst option really.

Yeah as if all of our woes will be sorted if OAPs stopped supporting charities and working in community volunteer schemes and providing unpaid childcare for their grandchildren so that their parents could go to work. We’re not all sitting on our backsides being parasites on the working young.

As you should. You have fulfilled your end of the social contract and it’s time for the state to fulfil theirs.

I really hope it doesn’t become means tested in a way that penalises low to middle income earners that have bore the brunt of poorly designed policies their entire working lives.

@afternoonified
”Currently, I will be eligible for my state pension at the age of 67, and life expectancy for a female is 82, so, according to statistics, I may have 15 years as a pensioner.”

The current life expectancy for a female of 82 is for females born in 2020. It is a common misconception that the “life expectancy at birth” statistic applies to people who where not born yesterday.

Your life expectancy is linked to your year of birth. A female born in 1980 has a life expectancy of 77. With the raise to pension age of 68 for those born in 1980 onwards being scheduled to be implemented, she may have 9 years as a pensioner.

It’s pretty grim for males, a male born in 1980 has a life expectancy of 70, so he may have 2 years as a pensioner.

If born before 1980, your life expectancy is lower than this. If born after 1980, your live expectancy is higher.

https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/lifeexpectancies/bulletins/nationallifetablesunitedkingdom/latest

No one knows, but I'm with your husband on this one. It happened in Australia when superannuation was introduced.

If they means test it it should be on income not savings

Pensioners do pay tax if they have an occupational/private pension. I am still contributing, its not just young people paying tax. Why did someone even mention the "least worse option" as something to be aiming for ? What do you want your taxes spent on if not giving it back to you when you need it ? This whole argument is madness. Where's the aspiration for a better society? We should be aiming high and demanding more for workers. Sick pay is derisory, do you really want see to people 60-70 who are too knackered to work having to survive on that for years, dependent on food banks and charity? I'm appalled at the lack of compassion, it's just horrible.

For what it's worth, last year as a couple we paid in excess of £10K tax, that is more than my state pension. Get worked up about something worth caring about like the sodding House of Lords where peers receive £361 per day just for turning up. There's 790 peers entitled to that daily allowance but it seems many of you would prefer to see your tax spent there rather than paid back to workers.

You don't just pay taxes for your "own" benefits. What about the country's infrastructure, security, healthcare, education, defence, transport, etc etc?? Or are you one of those people who thinks "someone else" should pay for all that??

@TarantinoIsAMisogynist

He's foregone his inheritance in favour of giving small lump sums to nieces and nephews, that's how much of a charmer he is.

The lady in question has hundreds of thousands in the bank, is taking £3k a month in private pension, has god knows how many ISAs. She owns her own house.

Same with my neighbour. Lived as an ex pat, paid no taxes here for at least 20 years. Is a multi millionaire. He and his wife both take the state pension.

For people like this, there ought to be a box to tick and they should bloody well tick it to say thanks, but no thanks, I/we don't need it. So that people who do, and a few have commented on this thread, could have a bit more.

@hairbearbunches You can do that already

https://www.gov.uk/guidance/voluntary-payments-donations-to-government

I earn more than £50k so am a higher rate tax payer. Guess how much my pension’s forecast to be, whilst paying more than the minimum contributions? £10k a year. That’s the same as the state pension. The income level will have to be set a lot higher than £50k as private sector pensions for those of us in our 30’s or below aren’t great, the days of gold plated pensions are long gone.

Oh, yes please, I have LOADS in the bank, if they did that I could keep my own money and get benefits, I'll be laughing all the way to the bank!😂

Seriously? You think people with wealth should still get benefits??

Means testing on income and not savings would just mean people would cash in any private pensions.
Most people need the state pension even with a private pension.
Just tax inheritance more instead.

From House of Commons Library:
National Insurance contributions: an introductionResearch Briefing
Published Monday, 16 December, 2019
"The Government has no powers to use NICs to fund anything else"

I've been swallowing this nonsense about it being a tax and NI going into a general fund but according to the Governments own Research Briefing, the contributions are ring-fenced and used purely for their intended purpose to pay out against the paid for insurance policy. It's just hype to turn people against each other and sow division, resentment and jealousy. It's clearly working. How long before we're encouraged to start kicking wheelchairs and stoning those with mental health issues? Dear God, what have we come to as a country? It's a crying shame.

You won't be a higher rate taxpayer as a pensioner though, so you'd be under the £50k threshold at the point at which the (entirely hypothetical) means test would be applied. Benefits (and pensions are a benefit, despite the fact that people don't view them that way) aren't means tested based on your income/savings in the past - they're based on your situation at the point you claim them.

Although I object to means testing on the basis that it's an ideological approach that I don't think would actually save any significant money. The cost of administering a means testing scheme to cover all pensioners would be huge.

Pensions are not a benefit

They are something you save for either in public or private schemes and if you don't save enough you don't get it - no benefit works like that

Agreed. If you do not pay enough NI, you get less state pension.

Apparently it is.

https://www.entitledto.co.uk/help/mixed-age-couples

Thank you

So essentially the younger partner can't claim UC? ( well they can but they won't receive anything as the full state pension is bigger than the UC standard allowance)

Yes, but on an individual level, if you make it to 65 you are likely to have 18-20 years of retirement ahead of you. That link states:

"Life expectancy at age 65 years in the UK in 2020 to 2022 was 18.3 years for males and 20.8 years for females"

Life expectancy for an individual goes up for every year that they survive. My life expectancy now that I'm in my 40s is better that it was in my 30s, because I've survived another decade. The life expectancy of a 90 year old isn't 70-something, it's about 94-95, because of how long they've already survived.

It is now if you are trying to claim benefits unfortunately. I shared a link above.

Not true. Job Seekers Allowance is contribution-based - you only get it if you paid enough NI contributions when you were working.