Do you think the new Labour government will mean test the State Pension?

[caringcarer]

I have been reading about an advisor to Rachel Reeves who is already advising her this is a good way to cut paying State Pension to many. I'm 4 years away from claiming my State Pension. I have 40 years NIC's paid in. I was expecting to get a full pension. I have a private Teachers Pension and a few investments. Do you think if the means test came in they would have to give 7 years notice? That is why Waspi women have a claim because they were not given sufficient time to make alternative arrangements. With just 4 years to go I don't think I can make this £11,500 pa up.

I would be amazed. It is difficult to do this because

• everyone has believed paying NI qualifies them for state pension
• how would they means test? It’s hard to do based on income when people often rely on assets in retirement eg drawdown from pension or income from liquidating ISAs. But if they means test on assets does that include the property that they live in?

I think breaking the triple lock, reducing state pension in real terms, then paying pension credit to those who would otherwise be in poverty is much more likely longer term. But though this would result in reduced state pension it wouldn’t be nil

editing to add - this was not something in manifesto and would definitely hit in terms of votes so whilst I think it is possible longer term I don’t think it is on the table now

Just stop. You are being ridiculous.

www.birminghammail.co.uk/news/cost-of-living/state-pensioners-could-forced-give-29501504

This is article.

If I was rationalising state pension this is how I’d approach it. Would need compulsory pension saving though

It's a personal view by someone who is on a panel advising the Chancellor on tax compliance. The idea that it's currently being considered by the government as an option appears to be baseless.

No, not likely. If they want pensioners to spend their pensions to boost the economy, they need to let them access it tax free.

If they change the rules, I'll redirect my pension payments into an ISA for DS instead, to spend on university fees, and limit my pension.

Long term something will need to be done, whoever is in government. But I can't see them means testing anytime soon.

I can see them stopping the triple lock at some point.

They will lose the next GE if they do this.

No @caringcarer

It's misinformation, being wilfully peddled here by embittered Tory voters.

Also, where have you been reading this:

I have been reading about an advisor to Rachel Reeves who is already advising her this is a good way to cut paying State Pension to many

Probably not really a legitimate source?

I think it would be disgraceful to means test the state pension, but I certainly wouldn’t put it past Labour. They will take money from well off people whenever they can, because it’s churlish for better off people to moan.

The trouble with means testing pensions is that it would discourage people from saving into pensions, which is the very last thing any government wants to do. More mundanely, you couldn't do it without 10 years of lead time (there's some convention about that, but even if not, can you imagine the outcry?) so the government that does it gets all the outrage and none of the income.

I was wondering about whether they'd stop higher rate tax relief but that's harder than it sounds, given salary sacrifice etc., apparently.

I wouldn't be surprised if the current situation where money in your pension is outside your estate for inheritance tax purposes changed though. I don't think there's any reason why that would be especially hard to do and it would bring in a bit of cash.

There has already been a long thread explaining why this is fear mongering nonsense.

If they're taxing people who have the money, then what's the issue?

It’s a bit desperate that the tories are resorting to inventing policies to criticise Labour with. Straw man policies.

This is the the third thread I've read on here over the past few days regarding this. It's almost as if a certain group of people want to plant doubt seeds and fear monger.

Possibly the the same group of people whose probable next leader should have been prosecuted for hacking and changing a website yet has never been charged for it.

I'm really glad you posted this, OP, as I've been worried myself re this. I have a fairly rubbish occupational pension and have been saving into ISAs to help me when I retire. I voted Labour this time and have always done so but if they move ahead with this, I won't in the future. Pension income is already taxed over £12570. If they further come from middle income pensioners, they will find themselves deeply unpopular. Lots of us have worked hard to boost our pension income given occupational pensions are poor due to time out child rearing.

*come for

No. That would be politically suicidal, and Rachel Reeves is not an idiot with a professional death wish. My guess is that not only they not means test the state pension, they will retain the triple lock.

They won’t- they should!

Means testing is massively difficult to perform, bureaucratic, hugely expensive. I think it’s highly unlikely.

But how would you means test the state pension anyway? It’s already one of the least generous of any comparable country. It would be political suicide for any political party to consider such a thing.

Then you don't need to worry @sunnysept, as has already been pointed out, this is misinformation which is being deliberately peddled to worry Labour (and other) voters.

I've put the source up thread.

As people have said, this is baseless.

If any party wanted to reduce the state pension cost, they'd start with the triple lock. Start off by removing the third pillar - the 2.5%. Fairly easy to argue that there's no need for the pension to have a guaranteed 2.5% rise is inflation and average wage rise are both well below this.

Means testing would be the last thing they'd do, and Tory attempts to stir the pot with this worry have gone too far. Fiddling with the triple lock would be a far more believable rumour to start.

I have not seen any other threads on this topic.