Rishi Sunak faces state pension conundrum
27/11/2020
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Official forecasts suggest the state pension will rise by 4.1% in April 2022 when unemployment is high.
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GRUNTFUTTOCK
27/11/2020 10:25:27
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bbc
https://www.thenational.scot/news/18898078.bbc-laura-kuenssberg-promoting-tory-austerity-economic-illiteracy/?fbclid=IwAR14gdYRpwf54rzA_Lq36UDS6-9zKLNovQcMZH27lpTnwEfA-jsakG7uI-Y
Followed the link and read it:
It is the biggest load of left wing twaddle going. You couldn't make it up.
So apparently we can go on borrowing money forever and never bother paying it back.
I swear everyone of those economists support Corbyn........you really couldn't make it up!
It is the biggest load of left wing twaddle going. You couldn't make it up.
So apparently we can go on borrowing money forever and never bother paying it back.
I swear everyone of those economists support Corbyn........you really couldn't make it up!
Financial incompetence and a failed ideology. Either Rishi GoldmanSachs Sunak is ignorant of the facts or complicit in a fraud on the public.
If he's anything like his boss, it's probably both.
Maybe address lucrative civil service pensions and do away with final salary and may the private and public sector level playing fields for pensions, rather than government gold plated.
most bands in the civil service are underpaid compared to the private sector - but that's balanced with good pensions. Lose the pensions and you'll lose most of your civil service roles. Want to know why nearly all government websites suck? It's because most developers in the civil service will only get paid 34k a year - compared to the 65k+ they get at Google etc, there's no competition.
Your own report states that "The UK state pension remains one of the less generous in Europe" yet there's already moaning about it before it's even announced and 18 months before it would apply. Yes I'm a pensioner, but after council tax, energy, etc, and food, there's nothing left.
I appreciate there are others worse off, but to moan about pensioners is simply wrong.
I appreciate there are others worse off, but to moan about pensioners is simply wrong.
As someone born in the early 1960s, I see ever rising council tax as one of the biggest barriers to ever being able to retire.
Did you not save when you were younger?
I'm retired too and although I had a relatively poor wage when I worked, I saved and prepared for my retirement. So now I am comfortable.
Because the country has been such as mess for so long under Tory and Tory Lite rule, the sensible thing was to financially protect myself and my family because I could never trust the government or my employer.
I'm retired too and although I had a relatively poor wage when I worked, I saved and prepared for my retirement. So now I am comfortable.
Because the country has been such as mess for so long under Tory and Tory Lite rule, the sensible thing was to financially protect myself and my family because I could never trust the government or my employer.
WHY
The whole system is a farce. Those who pay lots into it will get peanuts and those who hasn't paid (by going on jobseeker allowance for decades, for example) will get full pension. And the joke is no one wants to change the system.
My mother is a pensioner. She lives quite comfortably on her pension.
My father drove a lorry, not a hugely well paid job, but he always contributed to his company pension. He died before he could draw it leaving his widow with a half pension.
She gets just over the tax threshold on her total money making her an average pensioner.
My father drove a lorry, not a hugely well paid job, but he always contributed to his company pension. He died before he could draw it leaving his widow with a half pension.
She gets just over the tax threshold on her total money making her an average pensioner.
We are in it together or we are not. I would like to see you get the moon and more but in this reality after covid and with the car crash of Brexit around the corner, every demographic will have to tighten its belt.
and even the basic premise about it being low is wrong.
https://fullfact.org/europe/pensioners-eu-uk/
So in this respect, UK pensioners can expect slightly more money from the government than their European counterparts,
Let's not forget pension tax credits either....
https://fullfact.org/europe/pensioners-eu-uk/
So in this respect, UK pensioners can expect slightly more money from the government than their European counterparts,
Let's not forget pension tax credits either....
Pensions account for the largest slice of the benefits payments the UK makes. If all other benefits payments and public salaries are being frozen, why shouldn't pensions?
Unfortunately, if you do not get a full pension, in my case because of paying married woman stamp, which government at the time, said would make no difference to your pension. Sometime whilst I was working, this changed without announcement. Consequently, my pension was 70% and the rise is only eg.4% of your 70% and not 4% of a full pension. I worked for 44 years but still you fall behind.
I paid married women’s stamp in the early years and it was always known that it gave no benefits at all. When I went to work permanently and full time after my daughter was born I abandoned the cheapie version knowing I wouldn’t have to rely on husbands income/pension. At the same time went into the private pension scheme. Thank god. The new state scheme gives women credit years for child raising.
I opted out called SERPs many years ago on the surmise this action and NI payments would be divided in two and part of the NI payments would go into a private pension pot! This plan would give you a pension and a second pension great eh!!Then the government changed their minds!!
Gloating and sneering by married women at those of us who had to pay full stamp is my memory of working as a wages clerk. Even when we reminded them of the financial consequences, they said they were the ones winning......... small wonder I now have little sympathy for them.
Having become quite an amateur pension expert in recent years I would like to see successive UK governments gradually increase the state pension to double its current worth over say the next 20 years. Not doing so will result in pensioner massive pensioner poverty - alternatively let COVID 30 loose to sort the problem!
I don’t think anyone will need to choose to let covid30 loose, it’ll decide for itself when it’s ready!?
They are trying their damndest to achieve your latter thought!
Your plan would mean the minimum state pension would be, in real terms, equal to the current average earnings. Pensioners amount to about a quarter of the adult population. The remaining three quarters would be paying one third of their wages to pensioners.
A ludicrous situation where working people were getting much less money than the retired.
A ludicrous situation where working people were getting much less money than the retired.
They have already done it and let the covid into the care homes, this has resulted in enormous pension savings for the government
Covid 30? Covid 19 has been bad enough. I hope we're not going to get another eleven mutations of Covid over the next 20 years!
Well, with the tripple lock increasing it by 2.5%, inflation or average earnings (whichever lowest) every year it might get close to you aim. For simplicity assume low inflation and earnings growth then in 20 years, 1.025^20 = 1.64, a 60% increase. Not double but still a big step. If we get a few years of sharp earnings growth it might get closer.
Public sector pensions are un-affordable. The government needs to grasp the nettle here and bring them in line with the private sector
no chance we paid dearly for ours,so up yours
Removed
Levelling down: what aspirations we have as a nation! But I suppose we will have to get used to generally declining standards in 'Not-So-Great' Britain.
so instead of raising private pensions to where they should be, you want to drag everyone else down? Typical crabs in the bucket mentality that is rife in this country.
Why does everything have to be a race to the bottom?
free up jobs for young people stagger the age of claiming state pension.give people the choice and at the same time create known job opportunities.
thatcher had 3million on the dole she didnt care about them and neither does boris
Be aware the greatest issue here is not the level of the state pension,
but
The FACT that by 2023 25% of the UK population will be of pensionable age.
Current State Pension costs over £120 billion a year.
but
The FACT that by 2023 25% of the UK population will be of pensionable age.
Current State Pension costs over £120 billion a year.
That's why the state pension age has been increasing, to try to make it more sustainable. Fairly in my opinion.
And don't forget most of those who get the state pension have paid for it by paying income tax and national insurance for several decades.
And don't forget most of those who get the state pension have paid for it by paying income tax and national insurance for several decades.
The elephant in the room is that we all wish to live for ever - and expect someone to pay for us over a certain age when we are deemed "unable" to work, The NHS and the welfare state and "necessay" taxation was set up on the then population possibly claiming and the then life expectancies - now all skewed upwards. Answers on a postcard to Demonic Cummings who might find a person to find an answer
I think the triple lock has to end. we are really screwing the youth of this country- they have to pay for education that we got for free. they are suffering hard for a disease that doesn't affect them and they will be paying the bill off for the next 40 years.
we should look after all in society, things have swung too far against the young.
we should look after all in society, things have swung too far against the young.
I agree and also taking into account that the majority of the current people taking a state pension will also have some company pensions too, this should be reviewed.
Im middle aged and still got a fair while to go b4 i retire.
Since we want to remove the triple lock that doesnt affect me right now. I can see the state pension will be naff all when i do retire. Therefore i'll opt out of all NI payments.
Rather spend that money to make my own pension if i have to....
Since we want to remove the triple lock that doesnt affect me right now. I can see the state pension will be naff all when i do retire. Therefore i'll opt out of all NI payments.
Rather spend that money to make my own pension if i have to....
I'm in my mid 50s, so not pensionable yet, but will be soon-ish. I totally agree with you. It is unsustainable and needs to be phased out.
The only real reason that it's there is due to the fact that it was a vote winner. Successive Governments know that the elderly are more likely to vote.
Mind you, with that in mind, the younger should look to offset this at the ballot box.
The only real reason that it's there is due to the fact that it was a vote winner. Successive Governments know that the elderly are more likely to vote.
Mind you, with that in mind, the younger should look to offset this at the ballot box.
Won't the youth of today became pensioners one day and they will also want a larger state pension to go along side their company pensions.And aren't we all paying for past debts.Still paying for Napoleonic Wars (income tax)
The young now will become the old, if we don't start to raise the state pension soon the young now will be desperately poor pensioners.
Absolute rubbish.......it is just a matter of having a principled approach to allocating finances......16billion on more weapons? Really?
The vast majority of the now retired didn’t get their education for free at all as they went straight into work as fewer than 10% went to university.
We should go back to sending the best 10-15% of A level students to university and grant fund - others could go to work and then will not end up with debt they will never repay.
We have the worst state pension in the developed world already
This actually highlights just how badly run our country is - economically
Get ready for the Brexit Bonus. All will be well. Erm...
It's not even the worst in the EU but I agree it should be increased, I would propose its value is doubled over the next 20 or so years
And company and private pensions are a complete rip off. Why doesn't the EBC every report on how much pension fund managers and pension companies take from pensioner's investment pots? Its a complete disgrace.
Why are pension fund managers multi-millionaires?
Why are pension fund managers multi-millionaires?
Other countries don't have a Ponzi scheme as their state pension.
And yet. It's the pensioners who vote for this government and consistently vote for governments that produce poor pension payouts
Would someone care to substantiate these claims, in relation to NI contributions (or their European equivalent) and taxation rates. Simply untrue, I'm guessing.
So in this respect, UK pensioners can expect slightly more money from the government than their European counterparts,
https://fullfact.org/europe/pensioners-eu-uk/
France basic state pension is 33% lower than ours...
https://fullfact.org/europe/pensioners-eu-uk/
France basic state pension is 33% lower than ours...
This is simply not true. Check out the state pension in the US - the maximum possible Social Security benefit for someone who retires at full retirement age is $3,011 in 2020/21. A ranking of pensions by country - https://www.visualcapitalist.com/ranked-countries-pension-plans/
We rank in the middle in Europe, above France, Spain, Italy & Austria for instance.
We rank in the middle in Europe, above France, Spain, Italy & Austria for instance.
Because we as tax payers also pay for everything under the sun which other countries don't
Portugal is a developed country but the pension is less than the UK
Actually, we have a best state pension in the world because it is cheap.
You have to offset that fact by the other facts that those who solely depend on the S.P can get means tested benefits that are not part of Universal Credit eg Housing Benefit and council tax reduction as well as eg reductions in water rates or an extra £140 at xmas for power ( not counting the £200 ) What extras can you get in other countries?
Comparisons are misleading though. Pensioners in the UK have other benefits. No prescription charges for example and they are the largest uses of the NHS for which they pay nothing at the point of delivery. Current pensioners lived through the largest rise in living standards and contributed too little in that time,
Being not the most generous is not the same as being the worst.
You believe all those crap that we are living in a developed country. This is a typical third world.
I think the triple lock has to end. we are really screwing the youth of this country- they have to pay for education that we got for free. they are suffering hard for a disease that doesn't affect them and they will be paying the bill off for the next 40 years.
we should look after all in society, things have swung too far against the young.
we should look after all in society, things have swung too far against the young.
As a woman born in the early 60s, knowing a couple of aunts made it to their 90s, it seems reasonable that we won't get our state pensions at 60, but have to wait until 67.
Especially as the next generation is roughly the same size as us, rather than larger.
That is on the assumption that its a bit larger and later. Making us wait and then not increasing it as agreed is rather unfair.
Especially as the next generation is roughly the same size as us, rather than larger.
That is on the assumption that its a bit larger and later. Making us wait and then not increasing it as agreed is rather unfair.
Your own report states that "The UK state pension remains one of the less generous in Europe" yet there's already moaning about it before it's even announced and 18 months before it would apply. Yes I'm a pensioner, but after council tax, energy, etc, and food, there's nothing left.
I appreciate there are others worse off, but to moan about pensioners is simply wrong.
I appreciate there are others worse off, but to moan about pensioners is simply wrong.
I note that council executives don't get a starvation pension. We should take more interest in local politics, and kick the fat cats out.
so so right the council tax will soon see more and more people put in to poverty
Hmm... I'd like to see a fairer tax system but let's get our facts right. CT was frozen by the Tories from 2010 until 2018; & they also still withhold the Business Rate Support Grant, raised from local businesses to support council services.
CT provides local services, which we are dependent on and improve our quality of life, and which would cost far more to our pockets if they were privatised.
CT provides local services, which we are dependent on and improve our quality of life, and which would cost far more to our pockets if they were privatised.
At least you had chance to buy a house before they cost more than 10x average salary. For gen x and beyond most of us will never get to retire at all
Surely nobody on only state pension pays any council tax; mother in law doesn't, she said they'd never paid council tax. I didn't believe that at first, and in fact paid her bill for her for a few months after she was widowed to keep her out of trouble when she kept getting demands & court proceedings threats by the council. Turned out to be true: 100% rebate due to pension guarantee credit.
Then perhaps you should move to a smaller house?
This is known as cutting your cloth appropriately. If you can't afford something you don't have it.
The irony of pensioners complaining about council tax when the largest chunk of council tax is spent on pensioners is quite amusing.
This is known as cutting your cloth appropriately. If you can't afford something you don't have it.
The irony of pensioners complaining about council tax when the largest chunk of council tax is spent on pensioners is quite amusing.
Council tax is one of the most iniquitous taxes. It is not based on income. It is based on a completely arbitrary property valuation.
A 60% cut in government funding of local authorities is why.
Spot on. The increase in council tax each year is basically wiping out the increase in state pension. So, this is costing the government NOTHING. Not one penny.
I was born on the same day as keir Starmer in September 1962. I have retired. You both should have worked harder.
If things stay as they are you will get an increase in your pension when you turn 80 like I did - It's £0.25p - spend it wisely, don't go throwing a lavish party.
Your own report states that "The UK state pension remains one of the less generous in Europe" yet there's already moaning about it before it's even announced and 18 months before it would apply. Yes I'm a pensioner, but after council tax, energy, etc, and food, there's nothing left.
I appreciate there are others worse off, but to moan about pensioners is simply wrong.
I appreciate there are others worse off, but to moan about pensioners is simply wrong.
Did you not save when you were younger?
I'm retired too and although I had a relatively poor wage when I worked, I saved and prepared for my retirement. So now I am comfortable.
Because the country has been such as mess for so long under Tory and Tory Lite rule, the sensible thing was to financially protect myself and my family because I could never trust the government or my employer.
I'm retired too and although I had a relatively poor wage when I worked, I saved and prepared for my retirement. So now I am comfortable.
Because the country has been such as mess for so long under Tory and Tory Lite rule, the sensible thing was to financially protect myself and my family because I could never trust the government or my employer.
I also lived under a Labour administration that had to go to the IMF for a loan. The main aim of Tory policies is to give more freedom to the individual. However, as the current arguments regarding restrictions and liberty show that maybe people would have prefer living under a Stalinist regime.
Tried to save but was on a very low wage, had two small kids - never smoked nor drank. Made sure we paid the mortgage, and at times was eating egg and chips 4 times a week to make sure the kids were fed properly. At one stage, even sent the hired TV back because we couldn't afford it.
Frivolous comments like yours don't help anybody - try walking in the other persons steps before you comment.
Frivolous comments like yours don't help anybody - try walking in the other persons steps before you comment.
Rather patronising comment, not everyone were able to save money living hand to mouth
Try to be kind, it's good for you!
You sir are the kind of retiree the country needs. Someone thinking about their future and planning ahead.
Unfortunately, there is a sizeable group who think their sense of entitlement is all that is needed to get a payments in their old age.
Unfortunately, there is a sizeable group who think their sense of entitlement is all that is needed to get a payments in their old age.
Really? How much did you manage to save? I have always earnt decent money but what with mortgages, wife, two kids, clothes, food, car, petrol, car tax, insurances etc. etc. I never had that much left to save. I did have a pension with Equitable Life - fat lot of good that turned out to be. I'm guessing you have a company pension - or a state sector pension.
Financial incompetence and a failed ideology. Either Rishi GoldmanSachs Sunak is ignorant of the facts or complicit in a fraud on the public.
I am thinking ahead - i am forgetting the big mortgage for a house and forgetting the fancy cars to save up privately so i have a decent savings amount for when i retire so i don't have to rely on state handouts in the form of a state pension - if possible, people need to be sensible - plan for their future.
Fair enough , but the money you save won't increase except for additional cash to top it up.
Near zero interest is a deterrent to saving .
If you have enough ? buy a cheap flat or two somewhere else in the country and get an agent to factor it for you .
That way you will have an income and still have your money in the properties.
Housing crisis is not going away and interest is not going up.
Near zero interest is a deterrent to saving .
If you have enough ? buy a cheap flat or two somewhere else in the country and get an agent to factor it for you .
That way you will have an income and still have your money in the properties.
Housing crisis is not going away and interest is not going up.
Yes, then perhaps spend all those savings on care costs rather than yourself where as one could have no savings and get free care....
So did many others save and invest but BOE interest rates have been so low that a lot of expected income from hard work and thrift has been negated.
Saving towards a reasonable pension pot was an option until about 1995, but thereafter, with rising mortgage costs, council tax, cost of living, etc it became harder to save in that way. There’s no encouragement given to save those days, even if it were possible.
I did just that - saved for an extra pension then (was it Labour) cut the pensioner tax breaks and 10% rate so that a half decent pension still gets taxed.Spend it all and rely on benefits old chum (ironic)
State pensions are NOT handouts. I have worked for 43 years so far and paid towards mine. when I get it I will have earned it. It is basically the same as paying into a private pension fund and expecting what your owed when it matures.
It's not a hand out. Workers pay into it to help secure their future when retired. Those with private pensions pay twice. Don't fall into the trap of believing that a pension is 'something for nothing '!
It has been calculated. to get £176 pw pension you must start your pension at 16 with contributions at least15% of your take home pay until the ripe old age of 66 or more...enjoy!!
You will need to save about £1 million. You might get a pension of about £25k a year on that, less tax, or spend the capital. Care homes, if needed, could be £7k a month.
Get rid of the costly house of Lords before you start reducing the increase in state pensions !!.
They're not going anywhere on that Gravy Train. They wouldn't even go to York!
Nonsense, there needs to be something substantial to scrutinize legislation
I could not agree more, the savings would be colossal to say the least, on this totally outdated gravy train !
go read the real cost report - it wouldn't save much and would cost quite a lot to replace anyway. https://www.electoral-reform.org.uk/wp-content/uploads/2017/11/HoL-2017-Audit.pdf
The HoL actually do an important and valuable job in making legislation better. The govt of the day draft legislation that reflects their political views, but the Committee stage, which is supposed to refine and improve legislation, is manned by MPs appointed by the whips, who defend/oppose the bill on political grounds. Making the legislation fit for purpose is left to HoL.
And while they're at it, why not reduce the Commons to 99 seats or less as well. Apart from saving the payments made to more than 500 wastrels, there will be far less bickering among the kids. This would mean bringing in a more civilised system (PR) which would not be much of a cross to bear. Dump all of the other silly titles as well.The parliamentary buildings would make great museums or flats.
We still need a 2nd chamber to help keep balance and stop governments rolling roughshod over everyone with their more extreme policies. However the 2nd chamber should be elected by the people, each member representing a County or City.
To quote the Talking Heads.... "Burning down the house"..
Fatuous remark. The amount saved would give the millions of pensioners in this country pence
I think we still need the House of Lords as a check on the commons - but make it democratically elected. Also cut the daily allowance of £300 for just signing in - even if no work is done - what a gravy train.
Cost of the HoL is currently about £80m. You couldn't pay many pension with that. On the other hand, with each 'lord' costing the country £83000 a year, you have to ask why Johnson added 22 of them this year, including Botham and his own brother.
The BBC constantly complain that the State Pension is too low yet they also complain when it is increased above inflation.
Basically the BBC just love complaining.
Basically the BBC just love complaining.
And yet they have nothing to complain about ! BBC staff are vastly overpaid and on extremely good pensions.
I bet BBC staff get an incredibly generous pension. Paid for by the telly tax of course (which something like 550 people a day have decided to no longer pay this year)
I think the triple lock has to end. we are really screwing the youth of this country- they have to pay for education that we got for free. they are suffering hard for a disease that doesn't affect them and they will be paying the bill off for the next 40 years.
we should look after all in society, things have swung too far against the young.
we should look after all in society, things have swung too far against the young.
Im middle aged and still got a fair while to go b4 i retire.
Since we want to remove the triple lock that doesnt affect me right now. I can see the state pension will be naff all when i do retire. Therefore i'll opt out of all NI payments.
Rather spend that money to make my own pension if i have to....
Since we want to remove the triple lock that doesnt affect me right now. I can see the state pension will be naff all when i do retire. Therefore i'll opt out of all NI payments.
Rather spend that money to make my own pension if i have to....
I think the triple lock has to end. we are really screwing the youth of this country- they have to pay for education that we got for free. they are suffering hard for a disease that doesn't affect them and they will be paying the bill off for the next 40 years.
we should look after all in society, things have swung too far against the young.
we should look after all in society, things have swung too far against the young.
I'm in my mid 50s, so not pensionable yet, but will be soon-ish. I totally agree with you. It is unsustainable and needs to be phased out.
The only real reason that it's there is due to the fact that it was a vote winner. Successive Governments know that the elderly are more likely to vote.
Mind you, with that in mind, the younger should look to offset this at the ballot box.
The only real reason that it's there is due to the fact that it was a vote winner. Successive Governments know that the elderly are more likely to vote.
Mind you, with that in mind, the younger should look to offset this at the ballot box.
The triple lock was put in place because the state pension was so abominably low and had to be topped up with other benefits. It was decided it would be too much to increase it to a sensible level in one go so the tripple lock ensures it as least increases by 2.5% each year. The current payments still don't provide for a liveable income.
We have the worst state pension in the developed world already
Johnson needs to keep to his manifesto pledge on this area ,as we seem to find billions in certain areas that our a complete waste of tax payers money ,Lets see what he does, and we can vote them out at the next election if does not come up with the package
I agree with your sentiments but, who would we vote for instead.?
Should have to have a career or business before being allowed to be an MP. A degree in politics doesn’t mean you are or can be a politician.
And what do we replace it with?
Just because we currently have a weak government who seek to please their sponsors and try to be popular doesn't mean the system is wrong
It just needs a few adjustements
It just needs a few adjustements
I hope this article doesn't start a discussion that demonises pensioners, like setting off the young against the old. Truth is many younger people have benefited from earlier equalising pay & opportunity struggles (& better access to higher education) from the 1970s, which oldsters didn't get, but the bigger problem is low wages versus the cost of housing in this country.
Not quite true when younger people have had to pay for higher education, especially where said repayments could have gone into a pension pot rather than to a student loan company
They have to stir up some divide.. after Brexit we won't be able to blame "the foreigners" for the state of the country so let's blame the pensioners instead...
And banks starting the rot by taking partners incomes into account which meant they could get bigger motgages which moved house prices up and froze single people out of th market.
We have the worst state pension in the developed world already
HAHAHAHA. Why 'left wing'? You are clearly incapable of critical thinking prefering at every opportunity to denigrate anyone that disagrees with your irelevant self-serving mealy mouthed party-political nonsense, while obtusely misquoting valid economic theory for your own ends.
"So apparently we can go on borrowing money forever and never bother paying it back." Thats not what it says and you know it.
Rishi's money tree is on track to be 7 times the size of Corbyn's "insane" "unsustainable" money tree.
And they've nationalised the railways
How mad is that eh?
And they've nationalised the railways
How mad is that eh?
We have the worst state pension in the developed world already
By ensuring that people have a decent pension to live comfortably (which we all work for) that means those pensioners can afford holidays, a few luxuries that will help the home economy. It will also mean less pensioners having to claim various benefits too. That will help young people too. A decent pension is a win win. Poor pensions mean, more poverty, less spending and claiming more benefits.
I think the triple lock has to end. we are really screwing the youth of this country- they have to pay for education that we got for free. they are suffering hard for a disease that doesn't affect them and they will be paying the bill off for the next 40 years.
we should look after all in society, things have swung too far against the young.
we should look after all in society, things have swung too far against the young.
I am thinking ahead - i am forgetting the big mortgage for a house and forgetting the fancy cars to save up privately so i have a decent savings amount for when i retire so i don't have to rely on state handouts in the form of a state pension - if possible, people need to be sensible - plan for their future.
Fair enough , but the money you save won't increase except for additional cash to top it up.
Near zero interest is a deterrent to saving .
If you have enough ? buy a cheap flat or two somewhere else in the country and get an agent to factor it for you .
That way you will have an income and still have your money in the properties.
Housing crisis is not going away and interest is not going up.
Near zero interest is a deterrent to saving .
If you have enough ? buy a cheap flat or two somewhere else in the country and get an agent to factor it for you .
That way you will have an income and still have your money in the properties.
Housing crisis is not going away and interest is not going up.
Dont buy flats thats terrible advice. Go houses. Outside of centres like London flats tend to have THE worst capital growth and extra mnmgnt charges for the building..lease and ground rent !. No control of bulding/public areas..Can be effectively built out by the hundred too as larger buildings re purposed..over supply of same becoming common in many towns and cites...longer vacancies etc etc.
Not good advice to buy flats, too many other costs involved. Buy shares, history shows best in the long term besides housing. If you can be cleaver and buy and sell on route then even better.
Poverty in retirement shouldn't be expected.
The British state pension is disgusting compared to our European counterparts.
Always amazed me why people aren't angrier about this?
The British state pension is disgusting compared to our European counterparts.
Always amazed me why people aren't angrier about this?
If more paid in more would come out, cannot expect something for nothing, and thinking about all those who have been on benefits for years still get a decent payout. My NI contributions over 47 years was just over 256k yet someone who contributed substantially less will get the same pension as me, perhaps those who pay more should get more.
People are welcome to pay more into their pensions.
But they would then moan they don't have enough to live on in their take home salary.
Southern Europe's pensions are completely UNSUSTAINABLE. The Eurozone crash when it comes will be almighty.
But they would then moan they don't have enough to live on in their take home salary.
Southern Europe's pensions are completely UNSUSTAINABLE. The Eurozone crash when it comes will be almighty.
The reason is that to raise it to EU levels would require everyone to pay more tax.....as they do in France, Holland, Scandi, Germany.
And that makes people angry!
And that makes people angry!
We don't moan because it has so poor for so long most of us make alternative arrangements and for many the state pension is merely a top-up
If you can't be bothered to work during your life, then poverty in retirement should absolutely be expected.
and it is amazing that the british people still vote for the rich public school boys to govern them, even though those very rich toffs have no idea what would be living on a basic pension, becouse they (and their family) never needed to work like us.. it always amazes me why normal people still vote for the elite, thinking that somehow they would sort the poor problems... dooooohhhh
Angrier over,
Council Tax
Angrier over Immigration
Angrier over Crime
Angrier over The Barnett Formula
Angrier over our Utilities owned by Foreign Investors
I could go on. But nothing ever changes for the better no matter how angry we get.
Council Tax
Angrier over Immigration
Angrier over Crime
Angrier over The Barnett Formula
Angrier over our Utilities owned by Foreign Investors
I could go on. But nothing ever changes for the better no matter how angry we get.
Because many counrties in the EU rely on state pensions based on final salary not private provision. The countries with the most deficits are Germany and France both of which are technically bankrupt if you take these liabilites into account. That's why they're keen on ever closer union so that w e and the Dutch (who have a large private pension system ) can pay their pensions.
Why is everything in the UK about leveling DOWN. We should be looking to level up, that includes everything pay, social security, paying more tax etc, like all over Northern Europe. Yes prices will go up, but just look at the standard of living there, walk around here where I live and it is run down and neglected. All that North Sea Oil revenue wasted.
Thatcher wasted a lot of it fighting the miners and paying the dole queue .
What was left was squandered on bombs and bullets.
What was left was squandered on bombs and bullets.
We have some of the lowest taxes in Europe perhaps that's why have a lower pension
How is levelling up achieved with fixed resources unless someone else levels down? You seem to have succumbed to Johnson's twaddle.
We could have levelled up, but todays pensioners voted for tax cuts over tax rises.
Ah, we have to level down because we're competing with China, Brazil and India in the big, wild world of 'After-Brexit'. For a decent state pension you would need a group of decent politicians interested in the public good, not just lining their pockets with tax-payer's hard-earned.
Shame there's no alternative.
Anyway, no retirement for me, I'll have to work until I lose my marbles.
Shame there's no alternative.
Anyway, no retirement for me, I'll have to work until I lose my marbles.
except our basic state pension is actually 33% more than France's...
The Minimum pension (minimum contributif) is granted to those who are entitled to a full-rate pension but paid contributions on a low income. It comes to €636.56 per month
The Minimum pension (minimum contributif) is granted to those who are entitled to a full-rate pension but paid contributions on a low income. It comes to €636.56 per month
100% correct and add on the billions raised from nationalised industry sell offs. We don’t look like a country that ever had these windfalls, all wasted mostly by Tory govmts.
The cost of the House of Lords is tiny.
Based on 2018/9 figures, and even taking the most extreme interpretation of the costs, scrapping the HoL would result in a net savings that might allow you to increase state pension by 5p a day - a more realistic figure would be around 1-2p.
Not really "colossal".
Based on 2018/9 figures, and even taking the most extreme interpretation of the costs, scrapping the HoL would result in a net savings that might allow you to increase state pension by 5p a day - a more realistic figure would be around 1-2p.
Not really "colossal".
Maybe address lucrative civil service pensions and do away with final salary and may the private and public sector level playing fields for pensions, rather than government gold plated.
most bands in the civil service are underpaid compared to the private sector - but that's balanced with good pensions. Lose the pensions and you'll lose most of your civil service roles. Want to know why nearly all government websites suck? It's because most developers in the civil service will only get paid 34k a year - compared to the 65k+ they get at Google etc, there's no competition.
Im middle aged and still got a fair while to go b4 i retire.
Since we want to remove the triple lock that doesnt affect me right now. I can see the state pension will be naff all when i do retire. Therefore i'll opt out of all NI payments.
Rather spend that money to make my own pension if i have to....
Since we want to remove the triple lock that doesnt affect me right now. I can see the state pension will be naff all when i do retire. Therefore i'll opt out of all NI payments.
Rather spend that money to make my own pension if i have to....
I hope this article doesn't start a discussion that demonises pensioners, like setting off the young against the old. Truth is many younger people have benefited from earlier equalising pay & opportunity struggles (& better access to higher education) from the 1970s, which oldsters didn't get, but the bigger problem is low wages versus the cost of housing in this country.
How many of the students will actually fully repay their student loan.
Depends where you live, In Scotland you don't have to pay to go to University...
And of course there is never the case of bank of mum and dad? Yes students take out impossible loans but only start paying back later. The price of allowing Universty education for all ( a good thing). Should have limited tuition fees to £3k not £9k!!
Nobody forced them into Uni, in fact 90% probably shouldn't be there in the first place.
Most students will never pay off the student loan. Before STUDENT grant when they took out loans they had to pay them back whether they pass the course or not. Don't know they are born
I always thought that if you worked all your life paying taxes and NI then the country, that is the government and society, was entering into a contract to pay some of this back to you when you retired. Also when the current pensioners WERE working were they not making it possible to pay a state pension to pensioners of their day. I never complained about that, what has happened to society?
Did it got the (moth eaten) T shirt . Welcome to the real world of MP gold plated pensions and high salaries......
Many of the pensioners you referred to when you were working didn't live for very long, hence the nation could afford it. The average length of time someone born in, or just after the war will receive far more due to their life expectancy. I'd be very surprised if the NI 'war children' paid would cover the pensions they receive over their lifetime. NI payments are not just for state pensions.
Firstly the older generation grew in size meaning it became much more expensive to support them.
Secondly it started adding things like winter fuel allowance to the bill which is something they never provided when they were paying.
Thirdly it burned its side of the social contract by removing things like free further education.
Your generation chose a 'me me me' society, this is the consequence
Secondly it started adding things like winter fuel allowance to the bill which is something they never provided when they were paying.
Thirdly it burned its side of the social contract by removing things like free further education.
Your generation chose a 'me me me' society, this is the consequence
Unfortunately thatcher didn't believe in society and therefore privitised everything. The pension problem was obvious even to greedy tories in the early 90s. Remember "contracting out"? I bought into an awful pension plan.. Lost loads... In the same boat as a lot of people my age (55) relying on downsizing profit to last the rest of our lives. All down to thatchers property spasm...
Totally wrong. Those contributions go to pay the pensioners of the current period as it happens.
There is NO savings plan involved. Never was.
Fact is, you worked, you paid tax, you received the rest and spent it all.
That's where most people mess up. That left over money is the money you need to survive on when you can't work for it anymore.
Don't like it?
Tough! That's the way it is.
There is NO savings plan involved. Never was.
Fact is, you worked, you paid tax, you received the rest and spent it all.
That's where most people mess up. That left over money is the money you need to survive on when you can't work for it anymore.
Don't like it?
Tough! That's the way it is.
When the current pensioners were paying the pensions of the previous generation, they outnumbered them considerably. That is not the case now, when almost 20% of the population is retired.
There aren't enough workers to support the sheer size of the retired population, which is only set to continue growing. The cost of state pensions currently exceeds the cost of the police and the military.
There aren't enough workers to support the sheer size of the retired population, which is only set to continue growing. The cost of state pensions currently exceeds the cost of the police and the military.
Society in this country has gone down the pan. Too many people who do not want to work, too many thieves, too many selfish people, too many who think they should have everything they want, too many people who are rude, and don't give a damn about anyone else. This is not helped by rich getting even richer, wage gap getting bigger and house prices through the roof so fewer can afford to buy.
which is it? are workers paying into a fund expecting it to be paid back or were they supporting the pensioners of their time. Note that 30 years ago there were more people of working age and fewer people in retirement. People tended not to live as long. And the majority of pensioners were unable to work.
As life expectancy and health has improved retirement age has not risen to reflect that.
As life expectancy and health has improved retirement age has not risen to reflect that.
I think the triple lock has to end. we are really screwing the youth of this country- they have to pay for education that we got for free. they are suffering hard for a disease that doesn't affect them and they will be paying the bill off for the next 40 years.
we should look after all in society, things have swung too far against the young.
we should look after all in society, things have swung too far against the young.
I am thinking ahead - i am forgetting the big mortgage for a house and forgetting the fancy cars to save up privately so i have a decent savings amount for when i retire so i don't have to rely on state handouts in the form of a state pension - if possible, people need to be sensible - plan for their future.
It needs to be said again and again, and again that the UK state pension is miserly compared to other advanced economies in Europe. The triple lock goes a small way to levelling of this difference between the UK and European pensions Further, the triple lock over time will benefit those who are currently of working age when they retire.
The triple lock is already unsustainable. It won't be available to many people of working age when they retire. This is due to an ageing population, with less and less people of working age to support the State Pension. Your NI contributions are saved in a pot somewhere for when you retire.
The triple lock is already unsustainable. It will not be available to many people of working age when they retire. This is due to simple demographics. An ageing population with less and less people of working age to fund the State Pension of the future. Your NI contributions are not saved in a pot for when you retire.
'the triple lock over time will benefit those who are currently of working age when they retire.'
Could you give me an idea when that's likely to be as it's moved twice already.
Could you give me an idea when that's likely to be as it's moved twice already.
@daviddispat: your statement is completely wrong.
France's basic state pension is actually 33% LOWER than ours.
https://fullfact.org/europe/pensioners-eu-uk/
we also have pension tax credits and many other benefits to support the low incomes...
France's basic state pension is actually 33% LOWER than ours.
https://fullfact.org/europe/pensioners-eu-uk/
we also have pension tax credits and many other benefits to support the low incomes...
Earnings are higher in Europe, and most pay more for their pensions, so if the UK government increased your tax to pay for a higher pension, would people accept ?, I don't think so.
Problem is, that's now a big problem for many European countries, whose state pension is now 11-15% of GDP vs nearer 5% for UK, as Thatcher heavily promoted personal pensions in the 1980s
I'm not sure whether you are naive in thinking the triple lock will last 30 years, or deliberately attempting to mislead.
That's why the state pension age has been increasing, to try to make it more sustainable. Fairly in my opinion.
And don't forget most of those who get the state pension have paid for it by paying income tax and national insurance for several decades.
And don't forget most of those who get the state pension have paid for it by paying income tax and national insurance for several decades.
And. By the way. I do not even get the full state pension, on account of paying into my employers scheme. Where is the justice in that?
I don't understand your position. Paying into an employee's pension scheme should not affect your entitlement to pension. Of you mean you opted out and paid less NI then that would be a reason.
The justice is that you were contracted out of the state scheme, and therefore paid a different (less) class of NI contributions whilst at the same time benefitting from tax relief on your contributions to your employers scheme and additionally whatever amount the employer was obliged to contribute.
Those who have paid the 'contracted out' NI most of their working lives get less pension that those who have been credited with NI for not working!
I agree not fair
I agree not fair
Your company scheme pays out the equivalent to make up the shortfall because your NI went to the company scheme instead of the government.
You get a better pension from your employer. Plus you will get a full state pension, you just need to pay into it for a bit longer.
Considering the state pension is already a starvation pension he should be at least leaving things as they stand, any variations to it other than a massive increase he should hang his head in shame and resign.
You paid starvation rates into the NI bucket.
Why is everything in the UK about leveling DOWN. We should be looking to level up, that includes everything pay, social security, paying more tax etc, like all over Northern Europe. Yes prices will go up, but just look at the standard of living there, walk around here where I live and it is run down and neglected. All that North Sea Oil revenue wasted.
The change from being the 'Sick Man of Europe' to one of the best economies did have a cost. One worth paying though.
Fighting the miners was an excellent cause. Why should other hard working people subsidise massively loss making industries? Us SME people just go bust if we make losses, we don;t get funded by other people's tax. Unions should work with companies, not against them. Mrs T did us a great favour.
Many say she was trying to limit union power from shutting a nation. Well whatever side one takes the blocking roads/barring access to plants blocking entries/exits etc is a criminal offence. Being a picket doesnt change that then or now. Justifiable empathy for miners and others BUT closing operations elsewhere by huge blockades unacceptable. Force of physical numbers/mobs cant be tolerated.
100% CORRECT Thatcher used the Pension Pot for closing down industry etc No the 'younger' generations want us to get less or same as them when we have paid in for 51 years and they have paid in nowt.
Yes and Tony Blaire and his kronies got very rich off the back of Thatchers policies. But that gets overlooked. Thatcher done so much more for this country. And I was horrified at the time but I soon saw the positives. Unfortunately a lot of champagne drinking labour supporters also got more rich from Blair’s 12 painful years. And now think their for the people LOL. They Have no clue
Poverty in retirement shouldn't be expected.
The British state pension is disgusting compared to our European counterparts.
Always amazed me why people aren't angrier about this?
The British state pension is disgusting compared to our European counterparts.
Always amazed me why people aren't angrier about this?
If more paid in more would come out, cannot expect something for nothing, and thinking about all those who have been on benefits for years still get a decent payout. My NI contributions over 47 years was just over 256k yet someone who contributed substantially less will get the same pension as me, perhaps those who pay more should get more.
Personally, I'd prioritise elderly care over defence spending but I appreciate I'm in the minority.
Bombing Libya > Dignity in old age
Bombing Libya > Dignity in old age
It's annoying but we payers in just have to accept this, it took me a while but there's no point being annoyed. Anyway the workers of the time are those who pay the pensioners their SP. The UK gov solution was always to encourage people to save in company or private pensions hence the tax breaks.
Just one caveat to that: some have not paid in because they are disabled or disadvantaged in some way, and cannot get or do work. I still think they need to be treated fairly and supported in old age. And that is always the bottom line: how do you differentiate between those who haven't contributed because they're lazy, and those who would have if they could but were unable to? You can't.
In a capitalist society we cannot ALL be successful. It is a financial impossibility. The measure of a society is how well we look after those worse off or disadvantaged. Congratulations on being privileged enough to afford £256K NI.
If you paid in over £256k over 47 years then you should be getting more via SERPS?
Plus if you averaged paying in £5K of NI per year over that length of time, you must have had a decent job that offered an occupational pension as well.
Plus if you averaged paying in £5K of NI per year over that length of time, you must have had a decent job that offered an occupational pension as well.
Not how it works."from each according to their means to each according to their needs"doesn't work like that either.By way count PAYE,NI,VAT,Excise,Council tax,you paid well over £256k.For a pension of sod all.Those payments did cover roads ,rail,rubbish collection,street lights (ours turned off when dark)police station closed now being rebuilt as flats more council tax).I didn't sign up for this.
It is a shame the NI contributions were not invested properly from the start and used to build prosperity instead of being used to fund vanity projects and tax cuts. Too late now.
Your NI Contributions of £256k also included funding the NHS and Welfare system, so there is no equivelence to your Pension drawdown
NI of 256k over 47 years means and average annual income of nearly 60k you must have had a really good job
Definitely agree, we need to force the work shy to work - they should get at least half state pension if they have contributed less than 10 years NI. Benefits should reduce after 2 years by 10%/year. After 2 years unemployment all people should be given a job that they can do, if they refuse no benefits. Cannot give up job either, if they do no benefits. Money will be better spent elsewhere.
That’s not how it works, NHS is funded by taxes we all pay different amounts but can expect same treatment. State pension the same your NI contributions do not just cover the state pension but access to benefits. You should think yourself lucky you didn’t have to claim benefits . Look at it another way it’s called Insurance, I pay insurance on my house but have never claimed .
Totally agree. Especially when you take the employee contribution into account. I get much less than the post 2016 amount because I was contracted out so I have been punished for having a company pension. Those who managed to work very little and spend time on the dole get the full pension plus pension credit.
Me too! Started work at 16, retired at 66 due to ill health following a heart attack. Along the way I was made redundant 4 times, but got other less well paid jobs because I had a family and mortgage. Never had any handouts and never got into debt, and paid all my dues. Enough said . . .?
Totally agree. Like the German health service. Pay nothing and you get basics. Pay tax get more. Pay extra get even more. It’s quite simple really.
There are many reasons why someone may have contributed less than you were able to; childcare, caring responsibilities, periods of unemployment through no fault of their own etc, etc.
absolutely true. full ni contributions record should be at least double ' no contributions record' payments.
Until April 2016. Those who did pay more in got more out under S2P (State 2nd Pension) rules, it was SERPS (State Earnings RELATED Pension Scheme) rules before that, and before that Graduated (albeit a pittance). Since April 2016 we have had a flat rate scheme provided you are either earning, registered unemployed or a registered carer.
£256k means nothing without putting into context of what % of your actual salary that was and here is some bad news for you, the poor pay more as they pay 12% on everything after taking into account the NI Allowance, whereas, you were only paying 2% at the upper earnings limit. So cry me a river, fool.
We have the worst state pension in the developed world already
To be fair, a company scheme is generally good .. the company pays in at least what you pay, sometimes more, so you are doubling your investment at least straightaway. So it grows faster and more is invested. The funds have to be managed and paid for - most schemes the companies pay the fees. A private scheme with only you putting in is much poorer. Fund managers have many funds, so get a big pay.
You know this how??
True, BBC pensions used to be quite good, but that was because you used to have to pay nearly 8% of your salary into your company pension. These days the average company pension contribution in the UK is 4%. So is it surprising that BBC pensions WERE quite good.
Also, BBC like-for-like general staff salaries are about 85% of those in commercial world.
True, BBC pensions used to be quite good, but that was because you used to have to pay nearly 8% of your salary into your company pension. These days the average company pension contribution in the UK is 4%. So is it surprising that BBC pensions WERE quite good.
Also, BBC like-for-like general staff salaries are about 85% of those in commercial world.
When we get to see the pay and pensions of their commercial rivals, then all will be revealed. Can anyone see that happening soon.
Does none else think it unfair that the month of your birthday could mean a significant change of pension you are paid? I for one did know there was a difference in rates, prices aren’t different in shops for older pensioners so why should pensions differ.
They are that different once you take account of pension credit and SERPS provision just more provocative if you put it down like that
Hey - I got a £0.25p increase when I turned 80!
The average UK pension pot at time of retirement is just under £50k (and shrinking)
Currently nearly 60% of Brits have less than £1000 savings.
Some of the comments here are completely out of touch with current realities.
Currently nearly 60% of Brits have less than £1000 savings.
Some of the comments here are completely out of touch with current realities.
IMHO You need a pension pot of £1 million if you don't want to spend the capital.
too many spend and spend(drink, holidays latest phones, sky tv etc) and then blame the gov when they have no money left
The average size of EACH pension pot at retirement is C £50K
There are no statistics I have seen on the average aggregate of all an individual's pension pots. I was a Pensions specialist, and some clients could have a dozen different pots, none of their providers, nor HMG, knew the total values of all pots ( as long as they did not exceed the 7 figure Lifetime Allowance)
There are no statistics I have seen on the average aggregate of all an individual's pension pots. I was a Pensions specialist, and some clients could have a dozen different pots, none of their providers, nor HMG, knew the total values of all pots ( as long as they did not exceed the 7 figure Lifetime Allowance)
The UK state pension is already one of the least generous in the developed world. The notion that people that have worked all their lives should now be penalised is an absolute disgrace. It was a manifesto promise and enshrined in government policy that pensioners would continue to get annul pension increases index linked. To betray that promise would be outrageous.
It isn't fair to say that if you look at France, Spain, Germany etc the state pensions are done on a different basis and the basic level is actually lower than the UK. However they get more for higher earners as they pay based on earnings and these are the figures you see. However they don't have the occupational pension system we have which now sees 8% of earnings going in.
So you don't think the biggest global economic shock in history might be justification to have a rethink?
it was a manifesto pledge to continue paying the Foreign aid a 0.7% of GDP but that has stopped them reducing it......Just like all politicians- promises and pledges go out of the window once the election is over.
The problem with international comparisons is the exchange rate.
The £ is down around 25% since the REF so comparisons with Germany France will be 25% down
The £ is down around 25% since the REF so comparisons with Germany France will be 25% down
The state pension is far too generous. It should be a sack of mealy meal once a month and that is it.
The conservative manifesto promises are starting to fall like dominoes. The triple lock was designed to increase the state pension over the medium term and ensure that it was not allowed to fall again to the low level which it had reached so ensuring that every pensioner has a basic level of income. Everybody, God willing, will be a pensioner one day. Cut the military budget increase instead.
This is the guy who wants to give MPs a £3,300 raise.
... the govt gets no say over MPs pay ...
Not really. His name might be at the top of the page, but it's the IPSA that decide on MPs salaries, which then require Parliament to approve
Go on - just get rid of the State Pension triple lock; you know you want to. That's good 'ol democracy- freedom to be dirt poor and unhealthy. Brill.
That's only half the argument. How much has the Government saved by not having to pay for further education which benefits everyone in society.
they might be able to if the scheme did not change interest far above market rates, the students would clear their loans that way, but less would be paid back to the government.
Regardless of whether they will or won't pay it off, they will still be paying thousands more per year in tax for their entire working lives, that could have been paid into a pension.
To reduce the debt they must earn £50k
Regardless of whether they will or won't pay it off, they will still be paying thousands more per year in tax for their entire working lives, that could have been paid into a pension.
To reduce the debt they must earn £50k
Scrap the 'elephant in the room' IE (the HS2 project) over priced, over valued and will be nowhere near financially viable as told (lied). That would save Billions in one trust and help level the pension, 2nd scrap the BBC, again over priced, under viewed and nowhere near value for money or has anything positive to say about Briton and should at least lose that part of its arrogant title.
Perhaps there would be more money in the government money box if we stopped giving overseas aid to those countries with their own space and nuclear weapons programs. Not forgetting the extra money given to illegal immigrants rocking up on the shores of Kent all of the time.
Anyone would think we've stopped Foreign aid all together. Far from it - we'll still be contributing far more than most countries in the world. Not to mention the amount of it that gets eaten up by vast organisations before a single penny ever reaches the right destination! Way past time we used that money to sort our own problems out!
Surely the state pension should be the living wage at least. I retire next year and my income will be less than half of what I earn now . Don't tell me to be frugal , started work at 15 and worked every year , some poorly paid jobs . Never had any hand outs .EVER . So pay a fair pension for fair life's work.
I agree. Its a pittance same as uniersal credit. A friend lost his job aftr 10years due to this over reaction to the pandemic and is getting the ame as someone who has never worked and its a pittance
What is this weird idea a pension should remotely be close to a working wage? Never understood that modern attitude. Once there was no pension at all. You never expect to do more than eat and survive on a pension. It should never be funding fun and holidays.
Why the living wage if you're not a wage earner, don't have a family to raise, mortgage to pay, you don't need as much as young working families. I'm 66, btw.
A pension is not payment for a life's working, its a living allowance for those beyond working age, who no longer have children to raise, mortgages or family-size rent to pay and- of course, taxes to pay for such as the health service used mostly by the aged.
Why should it be the living wage? Why do pensioners have a right to a life?
Younger generations are being told to save into private pensions and not to rely on the state pension as a sole source of income in retirement. By the time many of us get to retirement, who knows how much less generous the state pension will be than it is currently. Perhaps the current generation of retirees should have taken a similar approach.
The assumption is that by the time you retire you have paid off your mortgage (most people’s largest expense) & therefore don’t need as much money on a monthly basis to maintain your lifestyle as your expenses have vastly reduced (no more commute etc)
The English taxpayer pays for it via the Barnett Formula.
It is impossible to survive on a basic UK state pension.
If Sunak decides use a dodgy wheeze to reduce the increase in state pension most of the shortfall in pensioners income will still have to be funded by the tax payers in the form of other social security payments.
Most of the nursing home charges are funded by the tax payers!
If Sunak decides use a dodgy wheeze to reduce the increase in state pension most of the shortfall in pensioners income will still have to be funded by the tax payers in the form of other social security payments.
Most of the nursing home charges are funded by the tax payers!
How old would you have to be to think that the basic UK state pension would be adequate on its own?
Every job I have ever had has always offered a private pension to top up the state pension.
For decades the onus has been on individuals to put something aside for retirement with a private pension or savings for retirement.
Every job I have ever had has always offered a private pension to top up the state pension.
For decades the onus has been on individuals to put something aside for retirement with a private pension or savings for retirement.
Id sooner the state pension go up for people who have contributed through taxes than give it to others who haven't
That would be everyone then, Since Mrs T changed taxation system from total direct taxation to a mix with indirect taxation, every single person pays tax, did you not know this?
strange that you did not understand that, we all pay taxes sorry to burst your bubble
strange that you did not understand that, we all pay taxes sorry to burst your bubble
Here go the BBC stirring up hatred towards OAPs from young people yet again, what a surprise. Remember kids, you’ll be a pensioner some day, you already think the world owes you a living. Take away the triple lock now and you’ll effectively be stealing your own future. Good luck with that ??
'You already think the world owes you a living'
You seem bitter....Why is that Steve?
You seem bitter....Why is that Steve?
"Remember kids, you’ll be a pensioner some day ... and you’ll effectively be stealing your own future."
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Any 'kid' with even the faintest delusion the state will provide for all their needs as generously as it does for the current crop of pensioners needs their head examined, urgently. And then start up their own pension plan.
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Any 'kid' with even the faintest delusion the state will provide for all their needs as generously as it does for the current crop of pensioners needs their head examined, urgently. And then start up their own pension plan.
In the next few years there will be a lot of retiring BBC executives and those the BBC imagine are stars, getting pensions far higher than they will need or deserve, after years of being underworked and overpaid, just to keep them in the lifestyle they've come to expect. I doubt the BBC will be complaining about that.
BBC traditionally has a more mature audience. It is now trying to pander to the young, which will not work, hence its rapid demise. A sad end to a once great organisation.
So Steve, when you were of working age were you paying enough tax to support pensioners of the time with a good state pension?That would be no.....
"you be a pensioner one day" probably not mate given I'm 33 at the moment and every couple of years the state pension age goes up, the average life expectancy is falling too, sadly can't see me living long enough to get one
By the time today's youngsters reach old old there won't be a state pension as the system will have collapsed under the outsized weight of the baby boom generation.
The conservative manifesto promises are starting to fall like dominoes. The triple lock was designed to increase the state pension over the medium term and ensure that it was not allowed to fall again to the low level which it had reached so ensuring that every pensioner has a basic level of income. Everybody, God willing, will be a pensioner one day. Cut the military budget increase instead.
you clearly have no idea what you are talking about.
If more paid in more would come out, cannot expect something for nothing, and thinking about all those who have been on benefits for years still get a decent payout. My NI contributions over 47 years was just over 256k yet someone who contributed substantially less will get the same pension as me, perhaps those who pay more should get more.
Here go the BBC stirring up hatred towards OAPs from young people yet again, what a surprise. Remember kids, you’ll be a pensioner some day, you already think the world owes you a living. Take away the triple lock now and you’ll effectively be stealing your own future. Good luck with that ??
Probably because he has paid into the system for 50 years and getting not much back ?
He doesn't sound bitter, just stating the facts !
Shielding since March I have been 'lucky' to arrange online supermarket deliveries for 50p until now, when some major supermarkets now charge £4 for 1 hour window or £1 for 4 hour window. I have no other benefits except an old style basic state pension. The 2.5% rise goes nowhere Council Tax eats it up each year so hopefully 4.1% will happen!
State pension up but almost everyone else get a pay freeze. Yes the state pension is small but how are we going to pay for it. Its comes from taxes raised from people working. The myth is that I paid in to it. My parents lived to their late 80`s and got more out than they paid in. My children are struggling who is helping them. And they have well paid jobs.
The govt should get its act together and get people working. Your family's problems are not the fault of pensioner it's the fault of this Conservative govt who from 2010 have mismanaged the economy and are now using the pandemic as a get out. Me I worked and paid my taxes from 16 to 68 By the way they are your children so if they need help it is your duty to give it to them not me.
Everyone who pays National insurance pays into "it".That is what the National Insurance is.It is a form of insurance that everyone pays into in order to be able to claim certain benefits,thus State pension is a type of benefit.Pay fully into the National Insurance scheme for 35 years and you are intitled to full State Pension.
The problem with state pensions is that people in general are living longer & the population is continually growing, there's going to come a time at some point in the future when their simply wont be enough money to pay everyone of retirement age a decent state funded pension.
What's the answer to that ! I don't know but somewhere down the line someone is going to have to find a solution to it...
What's the answer to that ! I don't know but somewhere down the line someone is going to have to find a solution to it...
As long as the population is continually growing there will always be enough people to pay.
Remove the triple lock. It was put in to cover Brown's embarrassment following the 75p pension rise, and we can't afford it any more.
It's time pensioners understood that young working people, finding it hard themselves to make ends meet, can't keep funding their inflation-busting pension rises any longer.
It's time pensioners understood that young working people, finding it hard themselves to make ends meet, can't keep funding their inflation-busting pension rises any longer.
Surely the state pension should be the living wage at least. I retire next year and my income will be less than half of what I earn now . Don't tell me to be frugal , started work at 15 and worked every year , some poorly paid jobs . Never had any hand outs .EVER . So pay a fair pension for fair life's work.
I’ve 32 years work and for 20 been in the 50% threshold, what do they spend it on!? Whitehall needs ripping to pieces and rebuilt, and Westminster should be sold, relocate the whole thing
I got made redundant 2 years ago, worked 35 years, and all I could claim was Job seekers, still had to pay council tax, got 75/ week and council tax 100/month. The benefit system favours the people who pay the least in to it.
I have to say, I really do think there should be some increment on all out of work benefits according to how long you have worked, and therefore paid into the system. It really is disgusting that someone who has worked and paid in for 10, 20, 30 years gets no more than someone who has done nothing but taken.
I sometimes see the means tested benefits as a bit like insurance where what you get doesn't depend on whether or not you have paid the premium.
Its a bit like you have to have car insurance. But if you crash and damage your car the insurance only pays out if you have no money in the bank.
Its a bit like you have to have car insurance. But if you crash and damage your car the insurance only pays out if you have no money in the bank.
the biggest injustice is 'is getting the same as someone who has never worked'.
What a shame we haven't got parity with the richer countries of Europe with a uniform pension. The UK pension would be much higher and UK pensioners would have a far better quality of life.
I would love that. I just wonder how much taxation everyone working would be happy to pay to make it happen.
Maybe address lucrative civil service pensions and do away with final salary and may the private and public sector level playing fields for pensions, rather than government gold plated.
Here go the BBC stirring up hatred towards OAPs from young people yet again, what a surprise. Remember kids, you’ll be a pensioner some day, you already think the world owes you a living. Take away the triple lock now and you’ll effectively be stealing your own future. Good luck with that ??
"Remember kids, you’ll be a pensioner some day ... and you’ll effectively be stealing your own future."
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Any 'kid' with even the faintest delusion the state will provide for all their needs as generously as it does for the current crop of pensioners needs their head examined, urgently. And then start up their own pension plan.
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Any 'kid' with even the faintest delusion the state will provide for all their needs as generously as it does for the current crop of pensioners needs their head examined, urgently. And then start up their own pension plan.
I am 57 and convinced that just because I have worked for more than 40yrs, have a workplace pension and continue to work part time I won't receive a state pension at all. I reckon state pension will be means tested by the time I reach my current state pension age in 10yrs. All because I was brought up by hardworking parents and not being bone idle and on the take.
The older folk voted largely for Brexit, knowing that others might suffer but that they would be secure with their lovely triple-lock whatever happens.
Well, you got your sovereignty back...now, you'll have to chip in like the rest of us
Well, you got your sovereignty back...now, you'll have to chip in like the rest of us
What an idiotic comment. I voted to remain as did my wife. We’ve been using our savings during this COVID period and the pensions have been a lifeline. You give the impression people are living the high life, certainly not what we are experiencing. Have a bit of respect.
The demographics of the Brexit referendum were that the older a voter was the more likely that he/she would vote leave.
Or to put it another way as people acquired more and more experience of living and working in the EU, the more likely it was that they wanted to leave the EU
Or to put it another way as people acquired more and more experience of living and working in the EU, the more likely it was that they wanted to leave the EU
OK. We pay our Pensioners a little over £9000 per year after a life time of paying in, Even assuming a 4.4% increase we are giving them an extra £7 per week.
Compare Pension with:
Nat LIVING Wage for 37.5 hours - £16000 per year
Benefits of up to £25000 per year TAX FREE.
We are mean to our Pensioners.
Compare Pension with:
Nat LIVING Wage for 37.5 hours - £16000 per year
Benefits of up to £25000 per year TAX FREE.
We are mean to our Pensioners.
Misleading because you aren't comparing like with like. Those other figures include housing costs. If a pensioner has to pay rent then they will receive that in benefits on top of the £9k pension. If they don't have to pay rent (or mortgage) then £9k for one adult is plenty to live off. Unless you are used to a high wage, in which case you should have paid into a private pension too.
And pensioners pay tax on anything over £10500 - assuming they have scrimped and saved. Why are benefits not taxed at the same rate??
The living wage surely has to pay for child rearing, housing costs that pensioners no longer have to find - not a sensible comparison
So you want to double or triple the state pension? It already costs 100bn a year. Where are you going to generate 200bn a year to pay for it?
Benefits of up to £25000 a year plus all the free stuff, that workers don't get free but have to pay for!!!
Another sensationalist divisive news story. Two week predictions aren't reliable at present let alone eighteen months.Lets wait and see and not use it as an excuse for pre-emptive action. Billions have been spent combating coronavirus , but unfortunately a large number of people have lost their lives,mostly pensioners. Time for compassion i think, not panic or a watch hunt.
Public servants will get a double-whammy: Fishy Sunak will cut their pay and now it looks as though he will fiddle the basis on which the pension increases are made.
The state pension is miserly. Unlike public sector pay and pensions. Damage the state pension at your peril Mr Sunak. We would quite like you for PM, but if you upset your natural voters, Mr Farage is still around you know. :-)
I suggest that some of the younger members of the population try to live for a time on a state pension. That may reduce their constant bleating about unfairness.
Most of those on a state pension have paid into the system for decades and are not seeing a great standard of living in retirement for their trouble.
Most of those on a state pension have paid into the system for decades and are not seeing a great standard of living in retirement for their trouble.
If I had known what the UK was going to be like when I was only a teen, I'd have worked very hard to leave and become a citizen in a fairer country that actually cares about it's people
It’s never too late. You still have a chance to leave.
We'll have a whip around for you. Off you trot.
Ha...I did...haven't been back since 1995.....and never looked back. Five years in Germany and now retired to Thailand.....happy days I can tell you.