To think when the state pension is removed, the social contract is broken?

[JulyJulyNovember]

https://www.bbc.co.uk/news/articles/c8e2yp1gg37o

It seems likely that in due course, the universal state pension will be withdrawn. At this point, I don’t see how there will be any incentive for young people to build wealth here.

I don’t think poor pensioners should be homeless, but I don’t think they should be provided for in large, unsuitable council houses or in nursing homes where places cost thousands a week. We are moving to a more individualistic world.

Wow, from what you say about your dad, my dad said the same thing to me. I started my nurse training in 1983, and we had to be in the pension scheme. My dad encouraged me to take out a private pension, which l did, but only when l qualified three years later, money was tight. I am 61 at the weekend, l have been told l will get a state pension , when l am 67. I am still working for the nhs, 43 years later. I will probably retire at 65, l am knackered. I have three children, the two eldest have private pensions aswell as their work pensions and have bought their own homes. The youngest still at home , training to be a solicitor, she worries us, likes to spend. She knows what she has to do for a decent future. We are almost certain she will sort things out when she qualifies. When you are young, you think you have all the time in the world, and then, you are in your sixties...How the hell did that happen

10k?

Over time the pension age will move forward up to 70, maybe 75. I also suspect at some stage it will become means tested. This is happening in any instance as personal allowances are frozen.

I am in favour of pensions being linked to average earnings only, rather than the triple lock. This means that the pension will continue to rise appropriately, but that we will not finish up with disproportionate pension costs, We do need to do something to have more equity with younger age groups.

Yes. PP said the average NHS pension was ‘only’ £7-10k a year. An amount the average DC pension holder can only dream of.

The funny thing is that if pensions were means tested a heck of a lot more public sector workers would be excluded than private sector.

Seems low. We get LA pensions and both pay tax on them.

Err, I thought practically everyone paid tax on pensions as the state pension is - if I am correct - now higher than the nil rate band.

It’s slightly less than the personal allowance currently.

I'm sorry for your Gran, but that is a completely different scenario to the poster who said they would refuse medication which could keep them healthy. Of course your Gran could chose to give up, but I couldn't imagine myself doing that.

My Mum also broke her hip (in her late 80s), had surgery, nine weeks in hospital rehab then moved to a rest home. She didn't want to go into care, but after a word from a friend changed her attitude. When she had been there around a year it closed due to falling numbers so she had to move to another one. She was perfectly happy at both homes. If I get to a stage where I find living alone difficult then I will be happy to move into care, we have to realise that there are different stages to life, and that is just another one. Attitude is everything.

I won't get my state pension for 5 years but no one pays tax on a state pension as it's below the personal allowance.

The personal allowance is static though and the state pension isn’t. The full new state pension is £12,547.60, the personal allowance is £12,570 so those on the full new state pension will be paying income tax on it next year.

No they won't as it's less than the personal allowance!

Anyway, what's that got to do with me paying tax on my LA pension which is obviously higher than the 10k you think is good?

It sounds awfully complicated to administer. Where I live everyone gets the same basic super rate whether they are a millionaire or never worked a day in their life.

Nothing. You seem to think it’s significant that you’re paying tax on your pension, when your pension is way more generous than most, and practically everyone who has worked long enough to get the full state pension and has any form of workplace pension pays tax. Which is a good thing.

Anyone with a state pension and a workplace pension of £10k is doing far better than most of the current workforce will be when they retire.

Ok and we're back to the beginning. I think 10k is low for a public sector pension.

Plus you keep going on about the state pension that I DON'T GET.

Well young people are struggling to afford housing, afford dc so so would say the social contract is already broken.

Then you should be fighting to keep the state pension. I’m sorry for the three replies. It looks like I’m picking on you. I’m not. Just keep thinking of something else.

That’s because you have a LA pension so it’s quite likely to have skewed your view of how much is needed to buy an annuity that would pay £10k per year.

As PP said, it’s about £250k (and I’m not even sure that would be index-linked for life). Even that “low” amount is beyond the reach of most of the public (which pays employer and employee contributions for the public sector, effectively). This is why public sector pensions need serious reform, and SP reform should only be considered once they are off the nation’s books.

La pensions are different from other public pensions. However, I paid my own contributions and am also a member of the tax paying public which pays for everyone else’s.

Women retired at 60.
Hardly considered the last 2 or 3 years of life.

Not as good now? You do realise it is only £12,500? Very difficult to live on one of the lowest in Europe. If other countries can manage it you have to ask why we can’t.

@huffdragondo you understand how European ones work?

60 was always tpo low, statistically we live longer than our husbands so we (all women not just married ones) should either be paying more in taxes, not recieve our pension for at least 3 extra years over our husbands or recieve around 25% less

That doesn't account for the fact mothers still take the career and pension hit of doing several years of unpaid labour to raise children who pay the former two generations' pensions, and women generally, including those without children, are more likely than men to take a carer and pension contributions hit by reducing hours to care for elderly, ill or disabled relatives, thus saving the state and taxpayers huge amounts of money at their own expense.
Additionally women as a sex class still do more lower paid caring jobs, making them on average less likely to be able to afford private pensions than men before punishing them with higher taxes and later retirement.
Your plan will increase the pension gender poverty gap that already exists.