Concerned that Labour govt might fleece me in upcoming budget?

[RightOh9oo]

Aibu to be concerned that Labour government might fleece myself/family in the next budget?

If they remove the right to UK pension for all, by making it means tested....I think I'll stop working this year. I'm early 50s, does anyone else feel like this?

I'm going without so much to save in my private pension, so no holidays to speak of.

Does anyone know what is in store in the upcoming budget?

I heard they're bringing in National Service for everyone under 65 and it will make the Tory version look like a week in Centre Parcs.

Which is about £12.31 - so more than here, but not that much more.

I was half-heartedly considering moving to Australia at one point. It was quite difficult to compare salaries - some jobs pay more than here, some actually paid less. That was years ago, though, so everything has no doubt changed.

The Australian figures are wrong - its not weekly, its fortnightly

What do you mean? I don’t have kids in private school and bought my council flat from someone who did RTB (he made £200k tax free…)

Yanbu. Anyone who earns over the national average, has investments or a private pension is likely to be very worried. We are already suffering one of the highest tax burdens for decades. And Labour think we can afford more taxes....how about they cut spending instead. Kier allegedly can't even afford to buy his own clothes, how are the rest of us supposed to manage after he increases taxes?

Vindictive is later deeming something that you have personally benefited from as a ‘tax loophole’ to penalise anyone in your previous position, so long as you personally are not liable for it.

But Keir has protected his mahoosive pension pot, so he doesn’t give a toss about us plebs…

So, what do you recommend? Making everyone who got a grant pay retrospective student loans? How about my 33% basic rate tax, do I get a rebate? None of the things in your post were tax loopholes, they were in accordance with taxation rules.

I'd recommend transition to the Australian system - so that the money people pay into their pension pot is in an account they own but can't access until retirement age (or say in case of terminal illness) and then the government pension move to a standard benefit type (ie means tested). This approach of paying into a pension pot that the government owns seems concerning.

So why is govt calling them tax loopholes?!

I think you are right about the age pension figures but I’ve scrolled back and missed them some how.

Age pension is a maximum of $1144 per fortnight ($572 per week) for a single person or $862 per fortnight per person in a couple ($431 per week).

Average rent per week = $570

Minimum wage = $24.10 per hour/$915.90 a week

The age pension is significantly below minimum wage and it is hard enough to get by on minimum wage as it is.

Australia ‘s system is not as generous as it at first seems.
Don’t encourage the UK to go this way too.

No, just the serving members of government who bring this legislation and tax rates in.

Link for that quote? Because I suspect it’s bollocks.

What you paid in 40 odd years before you retire, will be worth fuck all when you actually retire.

It’s highly unlikely but if it were to happen at least people should get back what they paid in.

its paid forward!!!

And Labour think we can afford more taxes....how about they cut spending instead

public services have been starved of investment, how can we cut more?

@DifficultBloodyWoman - that seems pretty equivalent to the UK - weekly state pension 221, average weekly rent 230.
And over time, more and more Australians will be using their own superannuation in their retirement not the age pension.

Yes. That's why I said politicians and not government ministers.

@caringcarer what an ironic username. Aren’t you a darling .:.

Hello Barberella. This is pretty much how the system in the UK works already. You pay into your own pot though your workplace pension, which you can access from 55 (soon 57). That’s the equivalent of the Australian Super, which you can access around 60.

With regards to the state pension, it is a benefit not a pot that is owned by the government. It is a form of social insurance with the explicit intention of preventing poverty. Its purpose is to provide a minimum level of income to all, above which you need to save yourself.

The only difference is that it is not means tested because if it were (under our system as we are not Oz), it would be a disincentive for most people to save for retirement. Why would you put away eg 10% of your earnings every year to live on in retirement and then watch your neighbour spend all his earnings and get given a pension by the state? Means testing is also quite burdensome from an administrative perspective.

That’s the balance that the govt has to strike.

My view: The state pension will never be means tested in the UK. However, I think the triple lock should be scrapped and I think that ALL benefits should rise in line with earnings.

The only way I can see the state pension being means tested is if its value is reduced below that of pension credit , which is means tested. This won’t happen though because the govt is trying to get people off means tested benefits partly as ppl don’t claim them in retirement so their living standards suffer. That’s why the new state pension is set at the rate it is.

@FlowertFlowers and @Towerofsong (your post was similar to this).

Your NI payments do not go into a pension for you. They are essentially a levy (ie a tax) that is collected to provide a basic level of INSURANCE to the population. The funds are distributed immediately as benefits, according to the policy system of the day. hence the reason it is known as a pay as you go system. What you build up in return for your contributions is entitlement to the state pension when you reach retirement, whatever it happens to be at the time. That said, there is no pot of NI either, money used towards welfare spending come from several different forms of taxation.

NI payments also go towards funding other benefits such as ESA which is also not means tested. If you don’t use ESA, should you therefore be paid back for what you put in? No, because it is a form of social insurance that is there for everyone if/when they need it. Education is a free social benefit too, and everyone pays into the option of having it through their taxes but you don’t get money back if you don’t have kids. Also, anyone earning below average income will also find that they put less into the state pension than they will get out of it.

i’ll leave it there but hope that helps.

Thanks I totally understand that but if the system were to change without warning and you’ve essentially paid other people’s pensions for all your working life but when it’s your turn there’s nothing available for you I think it would be fair to pay back some compensation . Otherwise as you say it’s just another tax.

I know thanks.

Thanks I totally understand that but if the system were to change without warning and you’ve essentially paid other people’s pensions for all your working life but when it’s your turn there’s nothing available for you I think it would be fair to pay back some compensation

Younger generations won’t be getting compo despite the qualifying age moving out. Or lack of universal WF payments & defo not free prescription when the hit 60!

I know thanks Your posts didn’t make that clear.