State pension

[blondeboobshell]

There’s concerns the state pension won’t be an option in years to come or will be means tested. Iyo what age group need to start not counting on getting the state pension, people in there 50’s? 40’s? 30’s? Or younger?

Ah, but it's the 'broad shouldered' who would suffer, so far less problematic.

Realistically though, they won't remove it they'll just stop the increases and let inflation make it irrelevant.

Someone who is 47 now will start taking their pension in 20 years. At current inflation (3.1%), without inflation linking the current state pension of £12548 would be worth £6820.

In 40 years time, when our 47 year old reaches 87 - and a current 27 year old starts taking their pension - then without inflation-linking, the current state pension would only be worth £3700.

And by the time our 27 year old reaches old age at 87, the current state pension would only be worth £2000.

Use your vote and voice to make sure that we don't lose meaningful inflation protection for the state pension! It's effectively a way to phase it out.

That's just kicking the can down the road. The pension wasn't properly planned for and will become increasingly unaffordable. Without serious reform, the current system will absolutely go bust at some point.

Means tested Top up is how it used to be via income support.

I think they were trying to get away from the cost of means testing.

Many of us (especially the self-employed) aren't in a position to put 20% of their income into a pension. I certainly can't.

The added problem is life-expectancy. My Nan for example is coming up on 100. She's worked hard from a very young age (brought up on a farm with no electric and water hand pumped from a well), and probably didn't expect to live this long. She isn't in a care home and needs that state pension - she wouldn't be in a position to be living on foodbanks and charitable support. A lot of old people don't have much social contact and have much less mobility (unable to drive or walk long distances for example). Even if she had accrued a good private pension (which she didn't); I'm sure it would have been used up a couple of decades ago.

Posters are saying no state pension in the world has been taken away. Australia has not taken pensions away as such and their system was not like ours to begin with but I think UK might follow their method as Australia uses a mixed pension system combining a government-funded state safety net with a mandatory private retirement savings system known as superannuation.

@OutOfTheOtherSidedid you miss the word pause?

People have their heads in the sand about the demographic changes. We have more over 60s than under 15s which makes the NHS & state pension models unaffordable.

Nobody voted for ‘Uni fees’. In the 80s, when I went to Uni, approx 10% of 18 year olds went on to higher education. By the 2010s that had risen to 35%. Of those, only 35% are expected to pay off their student loans. That’s because they won’t earn above the threshold to make payments. In other words, 65% of graduates with an average debt of £45k in 2020 never pay it back.
Degrees were much rarer in the 80s and graduates were highly praised and well paid as a result. The knock on effect is that the economy benefits from their spending power. Degrees are ten a penny these days; graduates are much less valuable in many sectors of the job market - who needs a degree to work in Tescos! There’s much less benefit to the economy as a whole and yet the tax payers are subsidising those many ex students who have been sold the lie that a degree is the pathway to a great career. So, in reality, 65% of students are receiving a free university education for no benefit to the country as a whole.

I suspect the simple answer is, what does America do? Anyone know?

I would argue an educated population is a benefit to a country & many countries think the same.

I'm mid 40's and not counting it in my retirement planning.

I've paid into my work pension for 30 years so far but also took out a private pension more recently.

I'm not wealthy but decided to give up a few luxuries now (regular eating out, salon nails, 2nd car etc) to focus on my pension contributions.

Many youngsters are struggling to afford housing, let alone pensions on top. I know a few who r opted out even of their employers pension, to scrape up a few more pennies to pay bills.

I honestly think that removing the state pension would be Britain’s “look to your own defences” moment.

No.

Pausing is a slippery slope and reduces the future pension. It has to stay now and forever.

If we are to reduce the cost of pensions then they need means testing so that the rich don't get them but for those who rely on the state pension, it is absolutely vital that we do not reduce it's value. Losing the triple lock is dangerous. It is utterly stupid and cruel to very vulnerable people to support it whether it's removing it or pausing it.

I was absolutely horrified to hear a young colleague of mine had opted out of her civil service pension that was costing her £150 a month, she had bought a house (shared ownership I think) on her own and literally needed every penny. This was a few years ago, I sincerely hope she’s been able to opt back in, that decision will have cost her thousands and thousands of pounds.

So how will we pay for an ever increasing state pension with a shrinking workforce?

@OutOfTheOtherSide well we have different definitions of pause & remove.

@OutOfTheOtherSide yes, please enlighten us since you are so much more intelligent than everyone else 🙄

@jiffypipeI know younger people who opt out of excellent public sector schemes, the trouble is with housing, commuting costs they really need that extra £100 plus to live now.

When I started work in 1990 I remember saying there won’t be a pension by the time I retire. Well I’m nearly at pension age and there is still a state pension and it’s just gone up.

I'm late forties. I have gone through my life assuming (maybe incorrectly) that the state pension won't be available when I retire.

With the falling birth rate and people living longer the current system won’t work. However, they will have to make savings elsewhere than scrapping it. I suspect the retirement age will creep up to 70 plus years. Life expectancy has shot up since the state pension was created.

It's an absolute vote killer to remove or means test state pension for any one who is actively pension planning now, so I don't see it going anywhere soon. But maybe a strong government will introduce a measure of changes for the younger generation based on means testing, and further encourage private pension.

Hope not.

I have always worked full time and am on track for a full state pension. I don't have a private pension though and no savings and we rent.

I will be screwed.

but healthy life expectancy hasn’t

Where is your evidence for this?