To think pensions need huge reform?

[aburrsir]

With all of the recent chat over changing politicians and big ideas that don’t go anywhere, I can’t be the only one who thinks that someone needs to bite the bullet with pensions?

It’s something ridiculous like 50% of the welfare budget annually, and this is never going to go away.

IMO the government need to hike up retirement age and scrap the triple lock. There can be provisions made to go along with this to phase this in for those in genuine need (e.g. for the next 10 years those with no private pensions can get a top up to cover the transition period).

I’d rather know “look you can’t retire until 75” now than this constant “it’s 67…. now wait it’s 68…..” that never ends.

It seems that all governments are scared to do such a big change as it will piss off older people (who are the primary voting demographic) but something needs to change as this is just completely unsustainable long term.

We’re better off making these changes to ensure the state pension can continue sustainably in the long term future rather than having this attitude of “as long as I’m alright I don’t care”

We need a gov with long term planning goals and not just short term firefighting. AIBU?

Here you go. If you know its on the government website, you've already seen ir and know I'm correct.
www.gov.uk/benefit-cap/benefit-cap-amounts

Please remember it’s never the child’s fault and they will be the ones to suffer if there’s less money.

The UK only spends around 4.5% of GDP on state pensions, whereas this is 10%-12% in Europe. So from that, you could say pensions are too low.

On the other hand, our taxes are significantly lower than Europe, so it makes sense that our benefits are less generous. Our wealth inequality is much worse than Europe.

State pensions should be means tested. The government should be there to support those who need support, not to provide some sort of reward for making it to SPA. People who are mortgage free with a £50k a year private pension do not need an extra £12.5k a year from the government.

Tax the rich. Help the poor. This shouldn’t be complicated. But people always punch down. People who are struggling always blame those on benefits or pensioners struggling to make ends meet on £12.5k a year while still paying rent, rather than the wealthy ones receiving the exact same pension and spending it on financial advice on how best to avoid inheritance tax.

On the other hand, our taxes are significantly lower than Europe, so it makes sense that our benefits are less generous. Our wealth inequality is much worse than Europe.

UK taxes are only lower for low-paid/average workers. Higher paid individuals are taxed on a par with (say) France, but the vast majority of UK workers are taxed at a lower rate. Picking on France in particular because I have lived there, but essentially there is a smaller zero-rated tax allowance, and rates of 30% apply to salaries of Euro 30k upwards. The 45% rate kicks in at a much higher salary - almost Euro 200k iirc. I have not looked into the "household tax" principles that apply in France since having DC, but suspect this would also work better than having the cliff edges e.g. for child benefit.

In the UK you pay an effective rate of 62% at £100k and the 45% rate starts at £125k.

It works because the bulk of workers in France are taxed at 30%, not because the Europeans have somehow reversed the Laffer curve.

Why do you need a breakdown when the government, the very same government that calculates and pays out benefits, is telling you what can be claimed in total? They haven't provided it so I've no idea what makes up the figures. If you really need to know try a FOI request to DWP.

If I were a young person now I'm not sure that I'd trust that the money I was paying upfront into a private pension would be safe for the future. Actually, thinking about it, I'm not sure I'd trust that one I'd been paying into for decades would either, as trust and all the old certainties seem to be unravelling.

Do you feel as angry about unfunded public sector pension schemes? Or is it just the contribution-based State Pension system, which workers have paid into throughout their working lives on the understanding that if they pay in for 35 years, they will receive a State Pension?

Just a small correction. The LG pension scheme is fully funded.

The £10 bonus at Xmas and 25p increase for those who turned 80 have not changed in 54 years. £10 back in 1972 is now worth £171.

My gran, uncle and mother all went senile in their early 70’s. I’ve worked since I was 16 so am I fuck waiting till 75, I still have 20 years to go and wondering how i keep going.

Thanks. I should have clarified that I wasn't including the LG pension scheme. People don't seem to be bothered by the sheer scale of the liabilities of the unfunded DB public sector pension schemes, which taxpayers are picking up the tab for alongside the State Pension.

@aburrsir

What are you doing to reduce your cost to the State?

Get your state pension at 60 they said, free bus passes, enjoy your old age, was looking forward to my purple rinse 😂 take it easy, you've worked hard for it, paid your tax and national insurance for many years, Free the job market for the young uns. Now its if you're healthy or managing, stay in work, us young uns will be paying you with OUR money, I'll retire at 67, should already have done, but hey ho.