More retired boomer's pay income tax than generation z according to official data.

[caringcarer]

The article is in the tax year 22-23 5.45 million boomers paid income tax whilst only 5.32 million under 30's did so according to data from HMRC. There are almost a million 16-24 year old NEETs. It was a real eye opener for me. Article behind pay wall so can't link.

I'm always reading threads implying pensioners get too much. So many were glad pensioners lost their WFA.

@caringcarer what are you confused by?

I'm always reading threads implying pensioners get too much. So many were glad pensioners lost their WFA.

The triple lock is an issue.
Why bit means test WFA?

not

A state pension costs ££££, the vast majority of older people will not have paid enough tax to cover the cost. That's before you take into account healthcare costs, education etc.
Now this isn't unusual but what has changed is we no longer have a pyramid when it comes to demographics. That's the problem & why the word burden is used.

I agree to means test WFA but RR did not do that she took it off all pensioners except those on PC so now they get more overall than pensioners who paid in enough stamps for full pension. That's not means testing.

No it doesn't. Many under 30 year olds will still be in full time education so of course they won't pay tax. Also we have an aging population. Boomers are called boomer's because a lot of babies were born during that period.
Also those under 30s that are working will be at the beginning of their careers . Boomers if they are still.working (and many still are) will be at the top of their careers.

Obviously people at the end of their lives, the culmination of their working lives, will be wealthier than people who are at the start of their working lives, taking time out for childcare… or just not working.

I very much hope that the people struggling now will in due course get promotion and pay rises, increase their savings once childcare costs stop, and struggle less once their kids leave home.

Meanwhile, pensioners bring taxes on drawing down their pensions saved throughout their lives are contributing to younger people on benefits, free nursery hours, free school meals for young children etc etc.

You can’t draw big ‘gotcha’ boomer - hating conclusions without looking at the whole economy.

Yes, COL and housing is a terrible struggle for many but PLENTY of younger generations and 20 and 30 somethings now have a LOT of money. See the cars! And the new bathrooms and kitchens. All over MN.

I agree to means test WFA but RR did not do that she took it off all pensioners except those on PC so now they get more overall than pensioners who paid in enough stamps for full pension. That's not means testing.

It is means testing, you just don't agree with how they benchmarked it.

@CarrieOnComplaining the point is (so much denial though) that younger generations don't & won't have the opportunity to build wealth so they will be in the same position as boomers now.

Meanwhile, pensioners bring taxes on drawing down their pensions saved throughout their lives are contributing to younger people on benefits, free nursery hours, free school meals for young children etc etc.

Everyone who pays taxes contributes to this

Yes, COL and housing is a terrible struggle for many but PLENTY of younger generations and 20 and 30 somethings now have a LOT of money. See the cars! And the new bathrooms and kitchens. All over MN.

What does this mean?

Oh for goodness sake!
Of course they have more money, they have worked for years more

Younger people will be in junior positions
Such a stupid argument
Will they turn they noses up at Boomer money when it's their turn NO!

Grow up

@Whoarethoseguys the article attributed much of it to the triple lock?

The article the OP is talking about literally says

"It comes as the triple lock drags more pensioners into the tax bracket while a rise in youth worklessness leaves more young people on the sidelines of the jobs market."

Yes fair point.

There is definitely a huge level of intergenerational resentment between the haves and have nots.

It's a shame because systemic financial inequalities are largely due to failed economic policies rather than any behaviour of those being castigated. Plus the intergenerational wealth issue obscures the real (imo) problem which is the massive uplift and hoarding of wealth by the 1%.

So what we're saying here is 5.32/11.6 16-30 year olds are tax payers. (Just under 46%).

Whereas 5.45/13.1M people between 61 and 81 are (41.6%)

But 16-21 year olds will be primarily out of the workforce, whereas 61-67 year olds should be in the workforce, and the state pension is nearly 11.5k a year, so you'd only have to have just over 1k a year of private pension to be a tax payer.

So I am not sure that this should be a surprise and actually we should expect it to be the other way round?

Both numbers are lower than I would like!

What do you mean when they get boomer money? Gen X may benefit from inheritance but millennials and Gen Z (the demographic being discussed) are unlikely to see the same sums from inheritance or from the increase in property value (if they can even get on the ladder).

Or do you mean when they get to a senior stage in their careers and are earning similarly? Maybe for the lucky few but if wage stagnation continues and the impact of AI accelerates, the younger generation may never hit that comfortable salary bracket.

Because really we all know the boomer generation's wealth is a one time deal made possible by the culmination of so many different factors - affordable homes that have quadrupled in value, access to cheap buy-to-let mortgages, decent public sector pensions, free higher education, low childcare costs/ ability for one parent to stay at home, the best years of the nhs. Now I don't begrudge older people these things at all (for me most of these things should be part of living in a fair and decent society) but I think it's disingenuous to say younger people can have all this if they just work really hard and delay gratification - no they can't - the conditions to facilitate this sort of wealth don't exist anymore.

I’m a retired, disabled widowed boomer, in social housing - I get no top ups/handouts, pay for everything and am taxed on my state pension and everything else.🤷‍♀️

Boomers as a generation take out more from
the state than they have ever paid in. Thats a proven fact.

Evidenc link?

I’m a retired, disabled widowed boomer, in social housing - I get no top ups/handouts, pay for everything and am taxed on my state pension and everything else

Isn't social housing a form of help?

www.telegraph.co.uk/money/why-boomers-benefited-state-handouts-gen-z/

Research by LSE's Prof Sir John Hills indicated that, on average, baby boomers are net beneficiaries of the welfare state, receiving more in benefits than they contribute in taxes, while subsequent generations are likely to be net contributors.

Here's a more detailed explanation:
Prof. Sir John Hills' Research:
Prof. Hills' work, published in the chapter "Distribution and redistribution" in "Inequality and the State," found that baby boomers, born between 1946 and 1964, have received more from the welfare state than they contributed to it.

Net Beneficiaries:
This means that, over their lifetimes, baby boomers are projected to receive more in benefits (such as pensions, healthcare, and other welfare services) than they pay in taxes.

Net Contributors:
In contrast, subsequent generations, such as millennials and Gen Z, are projected to be net contributors, meaning they will pay more in taxes than they receive in benefits.

Example:
Hills estimated that people born between 1951 and 1956 will receive in services 116 percent of what they contributed in tax, while people born between 1956 and 1961 will receive 118 percent.

Factors Contributing to this:
Boom in Welfare Spending: The welfare state expanded during the time when baby boomers were in their working years, leading to higher spending on benefits.

Tax Cuts: Baby boomers have also benefited from tax cuts, further increasing their net benefits.

Austerity Cuts: Austerity measures have led to cuts in benefits for working-age people, potentially leading to subsequent generations being net contributors.

Both numbers are lower than I would like!

That's the real issue

There is definitely a huge level of intergenerational resentment between the haves and have nots.

Because so many seem to ignore certain facts.