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 have not seen another thread about this. Can you link please?

They should, but I’m sure they won’t because it would be political suicide. The press would go WILD and so would lots of the public. People have this odd view that the state pension is somehow money the government has been saving for them out of their NI contributions and it’s ‘theirs’.

No not at all. Political suicide for one, too expensive to implement for another.

However decent policymakers will explore all options including the most ridiculous ones to model it, if only to justify why not to proceed with a particular approach. It is part of good governance and a requirement of good government. Doesn't mean to say this one will even get air time.

However, people have got so used to chaos from Whitehall that they have forgotten this is how it operates and the newspapers need to create click bait.

Trust me the Tories used to do the same, particularly during covid when they were making things up as they went along. You only have to look at the WhatsApp messages.

Yes I think this is sensible. It's unsustainable to keep the triple lock in the long run with people living so much longer. As time goes on most people will have a private pension and a lot less people will be reliant on pension credit and all the freebies that that entitles people to like all rent paid and council tax paid and free dentist care etc so that will reduce costs also. Not sure what they will do with disability benefits like Attendance Allowance. It seems like almost every other pensioner is getting AA and the threshold for claiming it is very low. I don't know if they will start means testing that or scrap it. I regularly see pensioners ( as part of my job) with 100k plus in the bank and living in massive houses and they are claiming it at £108 a week. Not sure how I feel about it to be honest as many don't spend it on care ( not that there is any requirement to ). I think there would be absolute uproar if they tried to means test the state pension though, it would be deeply unpopular.

@caringcarer

That's a very misleading article - the person quoted is Sir Edward Troup, who isn't part of the government.

There may well be a myriad advisors to the government suggesting this, but it's not something that's actually part of the government's current plans. (As far as I know). There are many, however, who would like it to be so - or, at least, who would like us to be frightened into believing it to be so.

I’ve just turned 40 and I’m assuming that by the time I retire I will receive little to no state pension as either
a)the retirement age will be so high I’ll get a couple of years before I die!
b) some form of means testing will have been introduced whereby all private income must be spent before you qualify for state help (much like care)
Something will have to be done as the current model is unsustainable but I doubt it’ll be this government or even one of the next two administrations we get

I can certainly see it being means tested for those pensioners with high incomes.

I.e. at income levels of £100k (as with withdrawal of personal allowance and removal of childcare for workers). Then maybe a few years later, reduce the threshold to £60k, i.e. the threshold where workers start to lose child benefit.

They certainly won't means test it for people with total income less than that kind of figure, so it would only affect a tiny proportion of pensioners, so wouldn't lose them the "grey" vote.

I think it's more likely that the state pension age will be increased rather than it being means tested. I can see it rising to 70 by the time by DCs retire and possibly to 75 eventually.

The whole system needs a serious overhaul but it's difficult to see how that could be done without disadvantaging an entire generation of people. It needs to be sustainable long-term and the current system isn't. There are too few tax-payers supporting too many retirees. It will become unaffordable in its current form in the very near future, I fear.

There have been many, many threads about this.
Maybe you didn't see any of them because you were so busy telling everyone why you were voting for Reform.

The Birmingham Mail and all the other Reach Media titles are utter trash that print nonsense.

They would means test oxygen if they could find a way to restrict supply.

I don't know why you always make nasty comments to my posts but this has got nothing to do with Reform as well you know.

Well if they ever do it's a very very long way off...pension planning begins when you start working ..or should do.

That wasn't a nasty comment.

I can’t see them doing it, but if they did I think they should start with people who own more than one property. Particularly if that property is rented out - as there’s already the potential to get money from the taxpayer via universal credit.

Why not consider it? This is how the state pension works in Australia.

In Australia the basic state pension really is basic. Individuals have had over 30 years to build up additional funds in compulsory superannuation pots to generate their own pension funds

Any form of means testing in this country would need saving compulsion and some lead in time before it could take over from basic state provision.

Actually not all but many LL's don't accept people claiming benefits or even benefit top ups via UC.

I think it's very unlikely

Do you accept them for your multiple properties?

No.

We’ve voted already

I use an EA to assess how creditworthy the tenants are. I tend to pick couples where both work full time and no DC or an older DC. Couples who both work full time with no DC would be unlikely to gain UC.

Several issues.

1. Moving goalposta - people have in many cases made extra payments to make up NIC years. Decisions like this have been taken based on state pension being universal. Removing state pension makes these extra NiC payments nothing other than theft IMO.

2. Taxing people so heavily to the extent that they change their behaviour. Why bother to try to save or get into a good financial position if you then get taxed to hell or lose universal entitlements. Why not just work 15 hours, don’t seek promotions, do the minimum to get by at work and live a relaxing life?