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 very much hoping to be a wealthy pensioner. I was broke when we got married. Broke while we had kids. I’m now less broke but work hours and health don’t give me much opportunity to spend. I have every intention of retiring at 60 and spending a lot of money on lunches, day trips and holidays.

I don’t particularly think this is surprising?

”boomers” have state pensions, private pensions, shareholdings, etc etc, while generation z have nothing.

my parents bring in around half my yearly salary every month through their pensions, rental properties and dividends. I hardly feel sorry for them having to pay tax on that income.

Boomer55 - Boomer wealth is still distributed unevenly - like I said up thread there are 2 million pensioners living in poverty. There is huge inequality within generations not just between the young and old. However, as a whole the post WW2 generation have benefited from the golden years of the welfare state, access to secure social housing tenancies and/or the huge increases in the value of privately owned property.

But this doesn't mean many older individuals aren't struggling and on a personal level I was against the removal of the WFA. This is just one example of what I mean about pitting one generation against another - it leads to bad policy decisions.

I agree with most of what you say but Boomers did not get access to free childcare. There were no government subsidies for childcare at all. In fact there wasn't as much access to childcare at all. In my day you were lucky if your Mum could help you out or you had to find a childminder to pay, which I did. But not as many nurseries about at all.

Looking at this, they really don't need the WFA yet such an uproar about that being taken away.

So this post added some very interesting statistics

So there are just 1.8M Gen Zs and over 8M Boomers. It's not surprising they are paying more tax!!!

I really do hate this Daily Mail/Express poor hard done by pensioners media stories. They are the generations that 'never had it so good' with their final salary scheme pensions and their owned outright homes. And they are the most moany, mean bunch out there!!

caringcarer I agree but one wage often supported a family meaning one parent (usually the mother and obviously I'm not saying this was always a good thing) could stay home for the pre-school years. That option really doesn't exist anymore and so families are trapped into paying high childcare fees for 5 + years at least.

But 33 percent of them might do.

Is this not a really damning indictment of our nation? I don’t know the raw data but this could be billions more being “earned” by those who aren’t working versus those who are.

A percentage of them will get it if on pension credit.

Deleted as it's not boomers, but over 70s

Is this not a really damning indictment of our nation? I don’t know the raw data but this could be billions more being “earned” by those who aren’t working versus those who are.

It's to do with the triple lock with has increased pensioner income whilst younger people have suffered more years of wage stagnation

I'm pre boomers. No maternity leave or pay at all when my kids were born, we had to leave our jobs and just lucky if we were able to get any child care later and if we could get a new job. When l was back at work, mothers to be going off on leave couldn't believe that.
I left school at 15 years old and started working the week after. I didn't have the holidays etc everyone seems to expect these days, without Internet these things just didn't seem so available.
We thought we were doing well when we earned £1000 a year so of course houses were cheaper then.
I was a child all through WW2 so that wasn't fun.
So l pay just a little bit of tax now.

what's the relevance of the above?

Sure, but the marginal increases in the state pension aren’t leading to over £1bn more being paid in tax by the boomers than my age group.

But many will have private pensions & the cohort has grown vs previous years. Only about 500k over 70 yr olds still work. Plus freezing off tax bands will pull more in. I think the 12.7k band should be closer to 17k if you allow for inflation.

What do you think the increase is due to @ForTealBee?

"The state pension rose by 8.5% in early April, but the knock on effect is that hundreds of thousands of pensioners on lower incomes have been drawn into paying income tax. Most pensioners will pay more tax this year as a result, owing to frozen tax thresholds.
Age UK and Independent Age both say they have seen an increase in calls to their helplines in recent weeks from pensioners confused about the issue."

"About 80% of pensioners get some extra income alongside the state pension such as from a private or workplace pension, or through a job."

"Ten million pensioners are expected to pay income tax by 2032 because the Treasury has refused to increase the tax-free threshold."

My neighbours both retired NHS have state and NHS pension, they pay tax. Another neighbour retired police officers pay tax. Another couple retired army pay tax. Another couple retired teachers pay tax. They're not rich but comfortable can go on nice holidays, have nice cars. I don't begrudge them.

I believe it’s stagnant wages.

im sorry but i dont feel sympathy for those paying tax on their income. Why should pensions have a higher personal allowance than young people trying to buy their own homes?

Oh yes, I agree that stagnant wages have really impacted younger people's living standards plus the frozen tax bands.

Why should pensions have a higher personal allowance than young people trying to buy their own homes?

They shouldn't

Personally I believe things like the pension should be means tested. If you have enough coming in via a private pension, you don’t really need it

Could you live on PC? Less than NMW!

Why shouldn’t it be less than minimum wage? On minimum wage a person is responsible for a lot more of their own costs. On PC things like housing will almost certainly be entirely covered by state benefits. There is a lot less to cover.

Theg don't have mortgages and if renting then on PC they will pay little rent, also barely if any council tax. So.e will have large property assets which they could release if they wanted to. Many young people will never get the chance to own.