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?

People pay in/ paid forward funds contributing towards the payment of present pensions on the understanding that if they reach pension age they will benefit from the same .

It’s not going to happen. And if it did it would protect those in / approaching retirement. But it’s not going to happen.

The test for Labour will be growth. Without it taxes can go up at the same time as spending reduction

Listening to an economist on this the highest debt since 1960s situation can only really be dealt with well through economic growth

For that look to the tax regime which is also increasing

Sorry I should have been clearer...by paying into pension I meant paying into the state (government) pension. Around 12% of our earnings goes into National Insurance which covers some of the benefit system (this is on top of tax) and we have also always been promised a non means tested State Pension from it that is enough for a basic level of survival.

We also (those who are working) pay into a private or employer pension scheme which is similar to your Super. This used to be an optional extra for employers but 10 years ago it was made compulsory, however most employers don't put in as much as the 10% that Aussie employers do, here the minimum for employers is 3% with employees making it up to 8%. Most people are struggling financially and wages are lower than Aus, so paying in extra is a pipedream. So we depend on the fact that we will also have a state pension.

Agreed. It’s very very unlikely to happen.

If it did happen, I am not sure the Government could protect those in/approaching retirement, given the McCloud judgement? It would be age discrimination.

But as you say, ain't going to happen. It is just Tory HQ the rumour mill going into overdrive. Most likely thing is they bring forward raising the pension age to 68 by a few years and/or raise it again.

I’ve just put up a thread about putting CGT on assets transferred at death, including on primary residence, interested in people’s thoughts! Link here so as not to derail

https://www.mumsnet.com/talk/politics/5170844-cgt-on-assets-inc-primary-residence-at-death

Superannuation is currently 11.5%, due to go up to 12% in July next year.

It should be noted that is included in an employee’s pay.

So, if you see a job advertised at $100,000 per annum, it is almost certainly $89,500 plus super, not $115,000.

I know that it used be the case that if a job in the UK was advertised at say £50,000 employers pension contribution were on top of that (so the overall package was worth £51,500 - my maths might be wrong on that). Is that still the case?

I am British so I am familiar with the UK system. I still even have a private pension over - hard to move unless I open a self managed super which would cost more than my tiny pension is worth.

Won't happen as raising SPA would not raise a single penny for the Govt right now and would be v v unpopular.

Usable healthy lifespan is already falling after 14 years of Tory Austerity, as is overall life expectancy.

Its pity the Tories wont accept any responsibility for what they done to get us into this mess.

You think it could happen here this very October? I highly doubt it

No not Oct, but it could be a future possibility down the years

People pay in/ paid forward funds contributing towards the payment of present pensions on the understanding that if they reach pension age they will benefit from the same

Well no one has consulted me re moving out my pension age or offered me compo. I’ve been paying NI since I was 17 & I definitely won’t be able to retire at 52 or opt out of further NI payments at that age.

They can't do that even if they wanted to without giving people a big window (years) to prepare. Same with increasing retirement age. Look at the WASPI women.

The change from 60 to 65 was legislated for at least 15 years before it actually happened.

So it’s possible, but I agree it would need adequate notice.

It was legislated (and heavily reported in the news) 14 years before they sent letters to the women affected.

And then after the letters it was another 5 years or so.

The fact that Labour are drumming into us on a nearly daily basis that the October budget is going to be brutal due to the dire state of our finances, makes me think they are going to be introducing some very controversial stuff, which won’t just be affecting the very wealthy and their taxes. But they need to be very careful how they balance it, as if we are going to get heavily penalised to accommodate high public sector employee salaries, or pet projects (Labour always like a pet project),then it’s not going to go well for them. And I hope throughout, we’re not going to see Reeves’ permanent Cheshire Cat smug smile. It’s really grating.

I assume the Australian superannuation is compulsory with no get out clauses?

Autoenrolment n the UK isn't really compulsory. An employer is only required to provide access to a pension and make 3% contributions to employees aged 22 or over and earning £10k. Employees can (and many do) opt out. The contribution levels are also really low at a minimum of 8%. It will be a nice enough sum at 68 but for many employees it wont be sufficient enough to replace state pension; it'll just be enough instead to stop renters being entitled to housing benefit.......

National Insurance is just a tax, like any other tax. It isn't a pension or insurance. The state pension is a state benefit not a pension.

Laughing at people " just wanting back what they paid in" mate unless you were a pretty high earner, what you paid on wouldn't fund anything like the state pemsion for 30 odd years of retirement.

I don't get these posts tbh
What is it you are asking for? Those people not to get a state pension?

I would argue there is a kind of social contract or understanding regardless of the figures involved

The message is you pay in for the number of years and that's your responsibility and the state pension is there

If any gov wish to disrupt that connection I'd say they will have a hard time

@BrooookeDavis

you pay into the state pension, that pays the pension for people older than you, but on the understanding you'll get a person when you're older.

If any gov wish to disrupt that connection I'd say they will have a hard time

But they have pushed the age out despite no increase in healthy life expectancy?

True, but that’s a bit different to means testing it - it’s still a universal benefit for those who reach the required age

VAT at 20% was supposed to be temporary

True, but that’s a bit different to means testing it - it’s still a universal benefit for those who reach the required age

I don’t think they will means test it but there will just be more tinkering so less get it.

I think similarly with the NHS, it will become more and more a case if you need that OP the wait is 3 yrs etc. More will be forced to go private.