Page 10 | The state pension won’t suddenly stop, will it?

TeapotCollection · 2023-10-18T13:12:54+00:00

I’m 51. We were talking about pensions at work and someone who’s about to retire said there’d probably be no state pension when I retire This can’t happen can it? I can imagine the government saying in a few years that anyone born after <date> won’t get it but surely it can’t suddenly stop?

user1497207191 · 21/10/2023 22:26

givemeasunnyday · 21/10/2023 20:19

Why couldn't they? Other countries have taxed national superannuation.

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It’ll cost more to administer than it would raise. Far easier just to make those affected complete self assessment tax returns using the existing system.

givemeasunnyday · 22/10/2023 05:39

AllegroConMoto · 21/10/2023 20:29

Have you ever had experience of UK government IT / infrastructure? We’d be waiting until 2123 for it to function even vaguely correctly

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Well no, I haven't, how can it be worse than in other countries?

Strugglingcareer · 22/10/2023 17:09

Nutellaonall · 19/10/2023 09:56

This is what’s bothering me about my NHs pension. It’s linked to state pension age so even if I pay loads into that the state pension ages might be pushed back more and more and I have no control over that so how can I predict what I will get?

This is 10000% my issue, I’m only 30 and pay in hundreds of pounds a month. I worry I won’t see any of it until I’m 75 and who knows if I’ll make that!

helford · 22/10/2023 19:34

Badbadbunny · 21/10/2023 15:54

Not on state pensions, they don't. They have no mechanism for deducting tax from state pensions.

It can be done via occupational pensions because the pension fund managers have PAYE schemes just like an employer, so tax can be deducted according to a PAYE tax code.

There's no way that DWP and HMRC could ever set up a PAYE scheme big enough to cater for the millions of pensioners claiming state pensions!

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Tax thresholds have been frozen, triple lock ensures the state pension will soon exceed the tax threshold, pensions are payable to people who would struggle with Self Assessment.

HMRC/DWP will have no problem taxing pensions at source.

FatherJackHackettsUnderpantsHamper · 23/10/2023 01:59

Is there not a higher personal TFA for people over a certain age anymore?

It makes absolutely no sense whatsoever to set the basic state pension at a level that means that people who are entitled to receive it - and do not receive any other income - do not actually receive all of it.

That would be utter madness. Surely you would either have to increase the personal TFA - at least for those old enough to receive the state pension - to the level of the basic pension; or otherwise reduce the basic pension so that those receiving it and no other income get to actually keep it all?

Who wants all of that unnecessary admin in order for millions of people to end up in exactly the same place?

AllegroConMoto · 23/10/2023 07:21

It makes absolutely no sense whatsoever to set the basic state pension at a level that means that people who are entitled to receive it - and do not receive any other income - do not actually receive all of it.

You’d also get into the weird situation where a single person who qualifies for the full State pension but nothing else might end up worse off than someone who qualifies for Pension Credit (as the weekly amounts for the full state pension and single person pension credit are currently pretty similar), unless they make Pension Credit taxable.

Badbadbunny · 23/10/2023 07:30

FatherJackHackettsUnderpantsHamper · 23/10/2023 01:59

Is there not a higher personal TFA for people over a certain age anymore?

It makes absolutely no sense whatsoever to set the basic state pension at a level that means that people who are entitled to receive it - and do not receive any other income - do not actually receive all of it.

That would be utter madness. Surely you would either have to increase the personal TFA - at least for those old enough to receive the state pension - to the level of the basic pension; or otherwise reduce the basic pension so that those receiving it and no other income get to actually keep it all?

Who wants all of that unnecessary admin in order for millions of people to end up in exactly the same place?

No there isn't (and shouldn't be) a higher personal allowance for pensioners.

Re the rest, whilst you talk absolute common sense, I don't think you appreciate the sheer level of stupidity in the Treasury and HMRC and their lack of common sense. It wouldn't surpriseme at all, because different depts don't talk to eachother! I've been an accountant for 40 years and despair at the stupidity level of tax/benefit decisions over the past 25 years!

FatherJackHackettsUnderpantsHamper · 23/10/2023 21:03

No there isn't (and shouldn't be) a higher personal allowance for pensioners.

Ah, OK. I'm sure there used to be, but I may be wrong or it may have been scrapped.

So you'd favour reducing the basic pension instead, then? However incompetent various government agencies are, surely nobody could justify giving everybody who qualifies £X, then immediately telling them they need to repay (at least) £Y?!

AllegroConMoto · 23/10/2023 21:06

Ah, OK. I'm sure there used to be, but I may be wrong or it may have been scrapped.

There definitely used to be, but I don’t know when it was scrapped; possibly in about 2016?

Plexie · 23/10/2023 21:18

There used to be a higher personal allowance for people over a certain age but, iirc, it was frozen and the 'normal' personal allowance increased until they were equal, and now there's just one personal allowance.

Thinkbiglittleone · 23/10/2023 21:45

Not for you, I don't think, but I do think it's a possibility at some point.

Tryingtokeepgoing · 23/10/2023 22:56

AllegroConMoto · 21/10/2023 20:29

Have you ever had experience of UK government IT / infrastructure? We’d be waiting until 2123 for it to function even vaguely correctly

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I actually find the HMRC app / website very good. The app in particular is very clear and simple to use. You can track all the forms / letters you send, if you do contact them. It also tracks phone issues you raise. It’s easy to see your tax code, change your expected earnings (for multiple employers) and get an updated tax code in 48 hours. You can mange PAYE, self assessment, check NI and state pension forecast and see where your tax money is spent. Having dealt with some other countries tax authorities (US, I’m looking at you, though not singling you out…!) I think it’s great. Just don’t try phoning them…though, when you get through they do, in my experience, resolve things quickly.