State Pension - what could happen to it?
Discussion
Phooey said:
Am I correct in thinking the State Pension was means-tested many moons ago? Personally I just can't see it lasting in its *current* format so interested in people's thoughts on what could happen to our SP in the UK...
people factor the state pension in when forecasting their retirement plans or budgeting for how much they can pay in per month to their top up pension. if they remove it from the general population there would be riots.
I remember having a conversation with my dad at least 30 years ago, where he said you should not ever rely on a state pension, it could be withdrawn, means-tested, reduced to a pittance, etc
So in answer to the question, it could disappear (unlikely) or get reduced in real terms (most likely through freezes/lagging inflation, as per income tax bands) but i cant see how the triple lock is sustainable.
I'm not banking on getting anything so anything i do get would be a bonus.
So in answer to the question, it could disappear (unlikely) or get reduced in real terms (most likely through freezes/lagging inflation, as per income tax bands) but i cant see how the triple lock is sustainable.
I'm not banking on getting anything so anything i do get would be a bonus.
I believe there is a current study, due around March which could be instrumental to a further raise to normal retirement age of 70.
The seeds are truly being sown for a rotten harvest.
Does irk me somewhat when some older folk are completely oblivious to how lucky they have been and with no shame whatsoever say how they deserve to have retired because they've worked 30 years.
They expect me to fall over in awe at how hard they've worked and I should understand they are deservedly able to retire in their 50's.
Most of this type have no idea the utter s
tstorm that the next generation will face or the fact that people are now having to work for near 50 years.
I would be very surprised if the state pension would be removed completely. More likely they keep raising it to an age where you'll get only a few years if you're lucky before you drop dead.
I stress to friends to make to make provision for their own retirement but sadly many are simply financially unable to do so or completely ignorant of the incoming pensions crisis.
I've worked 25 years and It'll be another 26 before I'm eligible on the current terms. Sod that. I'll be done at 60 and have some sort of an actual retirement.
The seeds are truly being sown for a rotten harvest.
Does irk me somewhat when some older folk are completely oblivious to how lucky they have been and with no shame whatsoever say how they deserve to have retired because they've worked 30 years.
They expect me to fall over in awe at how hard they've worked and I should understand they are deservedly able to retire in their 50's.
Most of this type have no idea the utter s
tstorm that the next generation will face or the fact that people are now having to work for near 50 years.I would be very surprised if the state pension would be removed completely. More likely they keep raising it to an age where you'll get only a few years if you're lucky before you drop dead.
I stress to friends to make to make provision for their own retirement but sadly many are simply financially unable to do so or completely ignorant of the incoming pensions crisis.
I've worked 25 years and It'll be another 26 before I'm eligible on the current terms. Sod that. I'll be done at 60 and have some sort of an actual retirement.
Edited by Rick101 on Wednesday 19th October 12:36
I agree that it probably won't last in its current form, however there is no way that the government can simply put a hard stop to the state pension. I would expect means testing to be phased in over a number of years probably based on your average tax coding.
I have 28 qualifying years and need 35 for the full state pension.
I have 28 qualifying years and need 35 for the full state pension.
It could be means tested in future https://www.ft.com/content/bd358400-5a77-11e7-b553...
example above says if you are retired on over £30k of private pension then your state pension could be reduced from that point , then perhaps over £40k you dont get it.
Makes sense, after all if you have investments/assets giving you £40k a year when retired, you are not exactly skint and in need of gov handouts
example above says if you are retired on over £30k of private pension then your state pension could be reduced from that point , then perhaps over £40k you dont get it.
Makes sense, after all if you have investments/assets giving you £40k a year when retired, you are not exactly skint and in need of gov handouts
bogie said:
It could be means tested in future https://www.ft.com/content/bd358400-5a77-11e7-b553...
example above says if you are retired on over £30k of private pension then your state pension could be reduced from that point , then perhaps over £40k you dont get it.
Makes sense, after all if you have investments/assets giving you £40k a year when retired, you are not exactly skint and in need of gov handouts
It's not a government "handout". People pay into it for at least 35 years.....example above says if you are retired on over £30k of private pension then your state pension could be reduced from that point , then perhaps over £40k you dont get it.
Makes sense, after all if you have investments/assets giving you £40k a year when retired, you are not exactly skint and in need of gov handouts
bogie said:
Makes sense, after all if you have investments/assets giving you £40k a year when retired, you are not exactly skint and in need of gov handouts
100% disagree - This is envy politics pure and simple. Why should the hard working person that followed the gov nudge theory to invest in a pension throughout their working life get stiffed when the workshy layabout gets paid.... This message would be "if you save, you will be punished" and that is counter productive.....
Ive been planning for it to vanish completely. I've been investing in a SIPP (alongside my employers pension) for an age and for my daughters since they were born. That in itself has enough tax and age worries. Ive been assuming the state pension will vanish or be worth so little with inflation it will only be enough for a pint and a cheese sandwich down the local. As I take advantage of the heat coming off the fruit machine screens.
I intend to use my SIPP as a top up to a part time job when I want to slow down from the 9-5
I intend to use my SIPP as a top up to a part time job when I want to slow down from the 9-5
Edited by oldaudi on Wednesday 19th October 13:14
bogie said:
It could be means tested in future https://www.ft.com/content/bd358400-5a77-11e7-b553...
example above says if you are retired on over £30k of private pension then your state pension could be reduced from that point , then perhaps over £40k you dont get it.
Makes sense, after all if you have investments/assets giving you £40k a year when retired, you are not exactly skint and in need of gov handouts
So, you are supporting having a considerable amount deducted from your pay each pay period for upwards of 35 years, for which you get absolutely nothing in return because you have been a good saver in the same period? Who's your uncle: Jeremy Corbin?example above says if you are retired on over £30k of private pension then your state pension could be reduced from that point , then perhaps over £40k you dont get it.
Makes sense, after all if you have investments/assets giving you £40k a year when retired, you are not exactly skint and in need of gov handouts
R.
Wacky Racer said:
It's not a government "handout". People pay into it for at least 35 years.....
And they have likely paid in a LOT more too if they are going to be in a position of taking a decent private pension.Bit irritating really this notion that the well paid should just get less of everything, despite having paid for it for everyone else in the first place.
WY86 said:
i like the fact people are talking about private pensions when in reality i know several people who have seen their private pension disappear in a puff of smoke.
So, any examples? I don't think your statement can be justified in this age of legislative protection etc. for pensions.R.
I'm sure I remember it being suggested when I was at school in the 1980's that by the time I get to retirement age, some time in the 2030's, there wouldn't be a state pension at all. Something about the pot of cash will have been exhausted, because the prediction was there'd be more going out than being put in.
Anything *could* happen.
In terms of negative things that are not too unlikely, it would not surprise me if at some point they underindex it to inflation and earnings growth, such that its real value is eroded.
I’d be shocked if they made it fully means tested. Both because it would be very unpopular, and also because it would create perverse incentives. BRB, spunking away >£200k on cars that would have otherwise been in a private pension so that my state pension doesn’t get withdrawn.
In terms of negative things that are not too unlikely, it would not surprise me if at some point they underindex it to inflation and earnings growth, such that its real value is eroded.
I’d be shocked if they made it fully means tested. Both because it would be very unpopular, and also because it would create perverse incentives. BRB, spunking away >£200k on cars that would have otherwise been in a private pension so that my state pension doesn’t get withdrawn.
fat80b said:
bogie said:
Makes sense, after all if you have investments/assets giving you £40k a year when retired, you are not exactly skint and in need of gov handouts
100% disagree - This is envy politics pure and simple. Why should the hard working person that followed the gov nudge theory to invest in a pension throughout their working life get stiffed when the workshy layabout gets paid.... This message would be "if you save, you will be punished" and that is counter productive.....
Scrimp and save for years and pay for your own care the Council can sell your property for your funding.
Or piss the money away and the Council will pay.
No incentive to save whatsoever.
Phooey said:
Am I correct in thinking the State Pension was means-tested many moons ago? Personally I just can't see it lasting in its *current* format so interested in people's thoughts on what could happen to our SP in the UK...
No your incorrect. It will last in its current format with the only caveat that the retirement age will be pushed out further and further, it will be a very brave government that ever tries to means test it, anyone who thinks that would happen is not playing with a full deck
Wacky Racer said:
It's not a government "handout". People pay into it for at least 35 years.....
Absolutely, I am 29 years in now why shouldn't I get what my parents are both currently enjoying? Also people imply that it is not worth having, but it currently pays £185, how much would you need in a private pension to pay you that much?It is pretty obvious that the age you can collect it is going to be regularly increased.
Joey Deacon said:
Wacky Racer said:
It's not a government "handout". People pay into it for at least 35 years.....
Absolutely, I am 29 years in now why shouldn't I get what my parents are both currently enjoying? Also people imply that it is not worth having, but it currently pays £185, how much would you need in a private pension to pay you that much?It is pretty obvious that the age you can collect it is going to be regularly increased.
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