To think we can't afford the triple lock

[paddleboardingmum]

Things seem very weighted against young people right now in terms of tax, student loans, and then there's the cost of mortgages and childcare. I know there are some older people struggling and I do feel sorry for them. But plenty are not and I think we just can't afford the triple lock at the moment. AIBU

The triple lock has only been a thing since 2011 when the state pension was worth 20.5% of median wage. Today the state pension has increased to 31.5% of median wage due to the triple lock.

Ok. We remove the triple lock. We then also remove UC and child benefit from increasing in line with inflation. Does that seem fair? If not, why not? That’ll save loads of money won’t it?

Hmmm no. But we need sensible adult discussions about how to deal with this huge issue. There’s no easy fix. Either workers pay more in tax to keep funding a decent state pension, and to keep giving healthcare to elongate people’s lives (even at the expense of quality of life), or we don’t. There is absolutely no question that we cannot afford to carry on as is.

No, we don't all know 'plenty' of wealthy pensioners. I certainly don't.

Right. So yes, the state pension is low when compared to an average full time wage, but also quite high as a starting point for a guaranteed (triple!) index linked income for life. It was certainly never designed to be a level where income tax would be payable. It has been caught in a pincer movement between a frozen personal allowance and a "best of all worlds" year on year increase which included a period of high inflation.

The solution is to temper the rate of increase and to eleviate the fiscal drag of frozen thresholds.

Exactly. And then some people wonder why the vulnerable are afraid of the prospect of an assisted dying bill. So much resentment, I honestly think some people do think the elderly should just do the decent thing and die. 😡

So saying that the triple lock should be scrapped has led to this? Sorry it's ridiculous. Nobody thinks that. It comes across immature and self pitying.

Yet if I suggested you cut back your readers digest subscription

I don't want to disappoint but Reader's Digest UK ceased publication on April 30, 2024 so it's not possible to subscribe any more.

Why do you suggest that? UC generally increases with CPI. SP increases by the greatest of CPI, AEI or 2.5%, i.e. the best of all worlds.

I would be in favour of equalising them to both receive CPI increases, but capped at AEI - Pensioners or those in receipt of state benefits should never get a pay rise greater than the workers.

Its more the older generations country, we have been here longer. Young people are so ungrateful.

No!!!!!!!! More cash for ornaments I suppose.

When I was young, working, raising a family, paying a mortgage, volunteering for my workplace union, my children's school PTA, my village committee.

Maintaining a social life with friends and family and sometimes searching jacket pockets, handbags and down the back of the couch for a fiver to last me until pay day. At no time did I think " my Granny is the problem here, she gets too much money and it's not fair.

but in that case, as a benefit, if we are not paying to fund the triple lock, we could reduce income tax. This would allow people to put the difference into private pensions. We could also make it so if you have never had a job, unless you are disabled, you don’t get a state pension. Only those who’ve paid in get a pension.

Oh, grow up.

Why not stop paying benefits to people on min wage? The definition of min wage is that it should be enough to live on.
People young enough to work can increase their income, it is not really possible for pensioners.

Cool story bro. How about we add a new measure then? CPI, AEI or 20%, just because "Grandma, we love you! Grandma, we do!"

You sound pretty ungrateful yourself. It's the working age population that is paying your pension with their taxes.

Its a shame you won't allow me a brief moment of levity to satirise a post talking about disney, nails and cafes and using the ageist card in the same post, by flipping to readers digest, scones and ornaments.

It seems like I am one of the adults in the room who understands how compounded increases snowball.

But the taxes of the older generation paid for the benefits of the younger no? Who do you think funded the NHS, schools, benefits?

The state pension should be a liveable amount without the need for pension credit

I worked and paid vast fortunes in tax/NI. As far as I am concerned, I have earned what I am getting back in state pension.

Come on both, you can do better than this. These threads always seem to descend into young v old nonsense.

Can we not keep this to the merits or otherwise of the triple lock?

That’s not how the state pension works and is a morally bankrupt attitude, I would say. No one “earns” what they “get back” in state pension. Your NI contributions are for current pension holders, not your own pension - because that’s how a decent society works.

Pot. Meet kettle.

I know. I am the older generation. I've been paying taxes since the 1980s.

A lot of young people are doing very well. They have opportunities that weren’t available for the past generation, the boomers. Women have full careers, most people have a decent car, a holiday every year.
Young influencers are making a small fortune, housing prices are high but are doable for a couple earning an average wage.
Bring back manufacturing and make benefits less attractive for able bodied people is the way forward, it might be cheaper to produce abroad but not if it impacts the benefits bill. Put factory’s
in counties where there isn’t a lot of work, when there was manufacturing jobs in those areas, most of the community worked there, having a better standard of living.