Means Tested State Pension?

AndyAdams

Interesting article on the bbc website, http://www.bbc.co.uk/news/business-40826562

Does anuybody think it will ever happen? If so when?

dunstonh

Does anuybody think it will ever happen?

No. There is no need for it to be. Linking it to life expectancy and equalisation we the main stages needed. That and making the Govt funded pensions (civil service etc) more affordable.

Removing the triple lock will be the next stage and then it should be affordable thereafter.

Pension tax relief will go long before means testing. Tax relief is about half the cost of the state pension. Sorting out tax credits will be another (about a quarter of the cost and spiralled since Gordon Brown decided to use the taxpayer to pay wages instead of companies).

p00hsticks

AndyAdams wrote: »

Does anuybody think it will ever happen? If so when?

No. Means testing is complicated and expensive to administer. If savings are to be made I think it more likely that either the SPA is increased further and/or that the triple lock is removed and future increases to state pension will be capped at less than inflation (as working age benefits are currently), so that the gradually the state pension becomes less and less of a proportion of people's retirement planning.

atush

No. Not ever

tigerspill

No - SP is not a benefit. It is a product we buy as we pay our NI.

A_T

Any politician reducing old age pensions would be committing electoral suicide so it could never be part of a manifesto. The triple lock might go but not as part of an election pledge.

zagfles

Yes as above - it will never happen. Not in the next few decades anyway.

They might increase the age, they might reduce the indexation benefits, they might stop the reciprocal agreements with other countries to index it particualrly when we leave the EU.

But I doubt they'd means test it - even plans to means test the winter fuel allowance have proved hugely controversial. It would make saving in a private/workplace pension pointless for those on low-mid incomes, something they're trying to encourage.

enthusiasticsaver

I think the administration involved in means testing it would be prohibitive. They may continue to tinker with the retirement age and they may restrict the tax relief but I don't think it will go completely although I keep hearing scare stories about it. It would be political suicide for any government to do this though.

colsten

tigerspill wrote: »

No - SP is not a benefit. It is a product we buy as we pay our NI.

Rubbish.

State pension is a benefit, and has always been one. Check out our Social Security legislation.

You don't buy a state pension by paying NI. All you buy is an entitlement to an unknown amount of SP once you reach SPA.

Your state pension gets paid by people who work and pay NI when you draw it.

xylophone

http://www.telegraph.co.uk/finance/personalfinance/pensions/11194265/State-pension-is-not-a-benefit-says-minister.html


https://petition.parliament.uk/petitions/121267
may be of interest.

greenglide

If they were to introduce means testing of the State Pension would this also apply to people who were already in receipt of it? Really?

There could, of course, be a new means tested component on top of the basic pension. Oh, that is pension credit, isnt it!