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Original poster

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

106 replies

caringcarer · 10/07/2024 17:04

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.

OP posts:
snowlaser · 21/01/2025 15:50

VivienneDelacroix · 18/01/2025 02:20

They won't, but I think it needs to be done. The aging population is a real concern economically and the current level of universal pension is unsustainable.

Pension is a benefit just like any other and other benefits have been under huge reviews over the last few years to make them more economically viable. This notion of having "paid in" has become the mantra, but state pension isn't a saving scheme - as a decent society we "pay in" to protect the vulnerable, not so we see returns. People who are privileged enough to have large private pensions should not be receiving the same from the state as those who have worked low wage jobs their whole lives and have never had the means to pay into private pensions.

Every time you means-test things you create a barrier at the threshold that disincentivises people to go beyond it - in this case why work hard and pay diligently into your pension? You might as well blow your money on holidays and let the means-testing pick up the tab in retirement.

We should be encouraging hard work and diligent saving, not encouraging people to cut back work and saving so they can claim means-tested benefits.

Maddy70 · 21/01/2025 16:08

No. But it is something that's been discussed by reform and the Tories. Labour would never do that

user243245346 · 21/01/2025 16:11

The state pension is incredibly expensive (over 10% of all government spending- larger than the entire education budget). I can certainly see means testing coming in to reduce the cost, no matter which party is on power. It will be unpopular though and pensioners tend to vote so it will likely be some time off. I don't see it happening before you retire.

There could be some variation to it - eg a means tested top up. Or pensioners could become liable for NI. Or they could continue to move up the age to receive state pension.

They will give plenty of notice though and I doubt anything will affect those in receipt of pensions

user243245346 · 21/01/2025 16:12

Wisemiser · 07/08/2024 16:06

Like as been said,State Pension is NOT a benefit, it's compulsory for working people to pay for it.If the Government do means test it, can I claim back my payments?

The state pension is a benefit. It's paid for by taxes. You may not claim tax refunds because benefit rules are changed

SugarandSpiceandAllThingsNaice · 21/01/2025 22:32

user243245346 · 21/01/2025 16:12

The state pension is a benefit. It's paid for by taxes. You may not claim tax refunds because benefit rules are changed

Show quote history

What if you have paid voluntary NIC? Wouldn’t that need to be refunded?

taxguru · 22/01/2025 10:26

SugarandSpiceandAllThingsNaice · 21/01/2025 22:32

What if you have paid voluntary NIC? Wouldn’t that need to be refunded?

Show quote history

Probably, yes, but far cheaper to refund voluntary NIC to a very small minority of people than pay state pensions to everyone.

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