Council Tax reduction

portly1

seven-day-weekend wrote: »

Absolutely. Those who didn't pay in end up better off than those who did. That can't be right. Nor is it in the spirit of the Welfare State.

No, they would get exactly the same level of pension.

44 of work = a basic state pension £110.15 a week + Guaranteed Pension Credit of another £35.25 a week (that's if you claim it - there is only a 65% take up for that benefit) Making £145.40 a week

0 years of work = Guaranteed Pension Credit of £145.40 a week.

Now who are the mugs for working? Me and thousands of others like me - we are the mugs.

portly1

SandraScarlett wrote: »

And that's the crux of it. If those people choose not to pay in, why should they be better off?

xx

Exactly. Do what they do in the States and in Australia. You only get out based on what you have paid in.

portly1

wildwestfan wrote: »

This is the latest report I could find. Looks like about 2/3rd of those eligible take up pension credit.
https://www.gov.uk/government/organisations/department-for-work-pensions/series/income-related-benefits-estimates-of-take-up--2

About your other point. Yes theoretically pension is on contributions but if someone has made very few or in fact even no contributions then they can apply for pension credit which if awarded will give an income in excess of the basic pension plus lots of add ons. Pension credit is Income Support for pensioners.

The number of pensioners that were estimated to be entitled but not claiming Pension Credit was between 1.21 million and 1.58 million. The total amount of Pension Credit unclaimed was between £1.94 billion and £2.80 billion.


That is disgusting!!! So the Treasury actually believe that up to £2.8bn is due to pensioners but is not being claimed?

And why is the government not doing something about this?

And I agree, there is no incentive to pay any NI in your lifetime - you will still get the same guaranteed income on retirement.

HappyMJ

portly1 wrote: »

Exactly. Do what they do in the States and in Australia. You only get out based on what you have paid in.

Australia? I'm Australian and I will get a basic state pension of AUD$827.10 per fortnight even if I will contribute nothing at all to the Australian pension system due to living in the UK for most of my working life. However, I'll only get that if I were to return to Australia to live which I intend to do...and I get to keep my UK pension as well.

dodger1

wildwestfan wrote: »

This is the latest report I could find. Looks like about 2/3rd of those eligible take up pension credit.
https://www.gov.uk/government/organisations/department-for-work-pensions/series/income-related-benefits-estimates-of-take-up--2

About your other point. Yes theoretically pension is on contributions but if someone has made very few or in fact even no contributions then they can apply for pension credit which if awarded will give an income in excess of the basic pension plus lots of add ons. Pension credit is Income Support for pensioners.

Not only those who haven't paid but also those of us who have paid in all our working lives. You still only get the basic pension and a little additional state pension if you were fairly low paid. You then get a top up of pension guarantee credit making it £145.40 per week in total.

wildwestfan

dodger1 wrote: »

Not only those who haven't paid but also those of us who have paid in all our working lives. You still only get the basic pension and a little additional state pension if you were fairly low paid. You then get a top up of pension guarantee credit making it £145.40 per week in total.

You have the qualifying number of years contributions for your pension and bit of top up. That's fine, you have done what you could.

If you are too ill to work then you should be looked after in retirement as well but surely you should not be penalised because you have worked and saved.

It should not even be considered that the actual basic pension that people have fulfilled their side of the bargain to receive should be means tested.

dodger1

wildwestfan wrote: »

You have the qualifying number of years contributions for your pension and bit of top up. That's fine, you have done what you could.

If you are too ill to work then you should be looked after in retirement as well but surely you should not be penalised because you have worked and saved.

It should not even be considered that the actual basic pension that people have fulfilled their side of the bargain to receive should be means tested.

Won't the new pension stop the penalties for saving? I thought it was going to. In other words at the moment you are penalised by not receiving pension guarantee credit if you have the basic pension but too much in savings or a private pension on top. I thought that with the new system you would get the full state pension with no reductions for savings or other pensions. Could be wrong of course.

princessdon

There is no way my generation with a private pension will ever get a state pension, it will be means tested way before the 30 years until I retire (assuming they don't raise the age again).

Meanwhile those whose muse is supported by housing benefit and tax credits who had multiple children whilst in benefits will get PC, rent paid and care fees paid.

The benefit system has long been working towards this, take our taxes and give nothing in return, don't pay net tax and you are looked after,

portly1

HappyMJ wrote: »

Australia? I'm Australian and I will get a basic state pension of AUD$827.10 per fortnight even if I will contribute nothing at all to the Australian pension system due to living in the UK for most of my working life. However, I'll only get that if I were to return to Australia to live which I intend to do...and I get to keep my UK pension as well.

So you will get the equivalent of £244 a week from your Australian State pension and at least another £110 a week for your UK state pension?

Why is the Australian pension so high? How is it worked out then if you have never paid into their scheme?

Anyhow you surprise me, I thought Australia was different.

I don't blame you - £354 a week coming in whereas we here have to live on £110 a week, that is unless people want to claim Pension Credit.

portly1

wildwestfan wrote: »

You have the qualifying number of years contributions for your pension and bit of top up. That's fine, you have done what you could.

If you are too ill to work then you should be looked after in retirement as well but surely you should not be penalised because you have worked and saved.

It should not even be considered that the actual basic pension that people have fulfilled their side of the bargain to receive should be means tested.

The day will come when it is means tested as the scheme was an insurance scheme and not an entitlement to a guaranteed pension.