The demise of the triple lock.

balbs

Personally, (heres another turkey vote) I can never understand why NI contributions stop at retirement.  As people age their need for state help increases rapidly, so I would find nothing wrong with raising a lot of money for those services by having say, a reduced rate of NI taxation for pensioners who have quite decent incomes (above the working average perhaps).  That would go some way to balancing out the inter-generation imbalance.  It would be interesting to calculate how much money could be raised in this way, and even improve residential care.

Silvertabby

balbs said:

Personally, (heres another turkey vote) I can never understand why NI contributions stop at retirement.  As people age their need for state help increases rapidly, so I would find nothing wrong with raising a lot of money for those services by having say, a reduced rate of NI taxation for pensioners who have quite decent incomes (above the working average perhaps).  That would go some way to balancing out the inter-generation imbalance.  It would be interesting to calculate how much money could be raised in this way, and even improve residential care.

I've never understood why NI on earned income ceased just because the worker reached State pension age.  I wouldn't object to this concession being scrapped - but NI on pension income would be a step too far.

luvchocolate

There are many pensioners in a similar position to me and I would struggle if state pension didn't rise each year. 
My total income is around £13000 per year made up of state and works pension. 
My rent is just over £4000 per year. 
I manage ok.
I get no help at all. 
Last year my dental treatment was £850 a neighbour couldn't believe I had to pay. 
Please don't think all pensioners are wealthy some of us have to be careful. 
If the fuel allowances is restricted to anyone claiming benefits this would hit me hard 

Sapphire

itwasntme001 said:

Just to add on the above by way of an example; I know of many couples (including my parents) who have retired or close to retiring who have not worked in typical "professional" careers and who do not have any more qualifications than A-level and they all are very well off, all with a minimum net worth of £1m and that is not even counting any of their private pensions they may have.

Now you have so many young "professionals" with undergraduate degrees working in low wage occupations where it is very difficult to see any decent real wage growth in their careers and with no gold plated DB pension plans to look forward to.

Well, that's very nice for your parents and 'many couples'. I, however, know many pensioners who certainly do not have a 'minimum net worth of £1m', despite working very hard throughout their lives and living in conditions that would be considered extremely poor in their youth, and despite having small private pensions. They've never moaned about the (real) poverty they grew up in, but just got on with it and are now just about managing, though spending carefully.

I've heard of pensioners who are very well off and go abroad on expensive holidays several times a year, but don't know any like that myself – though I do know a few younger people who pursue such a lifestyle.

nigelbb

balbs said:

Personally, (heres another turkey vote) I can never understand why NI contributions stop at retirement.  As people age their need for state help increases rapidly, so I would find nothing wrong with raising a lot of money for those services by having say, a reduced rate of NI taxation for pensioners who have quite decent incomes (above the working average perhaps).  That would go some way to balancing out the inter-generation imbalance.  It would be interesting to calculate how much money could be raised in this way, and even improve residential care.

National Insurance is only paid on earned income so your idea would only hit those past state pension age still in work. I am past pension age & still in full time work & it was very pleasant to have an effective pay rise of several hundred pounds a month which allowed me to reduce my hours without financial penalty.

Durban

A few people on here seem to make some pretty horrible comments about the young.

It is quite unpleasant really how the young get a lot of bad press , mostly whipped up by the media.

I have kids who are in their 20's and I also work with a lot of youngsters in their 20's and 30's and most of them are not profligate, are sensible , hardworking and are a great bunch of people.

To the posters being unkind about the young , do you not have younger relatives or friends that you'd like to see doing well later in life?

Linton

nigelbb said:

balbs said:

Personally, (heres another turkey vote) I can never understand why NI contributions stop at retirement.  As people age their need for state help increases rapidly, so I would find nothing wrong with raising a lot of money for those services by having say, a reduced rate of NI taxation for pensioners who have quite decent incomes (above the working average perhaps).  That would go some way to balancing out the inter-generation imbalance.  It would be interesting to calculate how much money could be raised in this way, and even improve residential care.

National Insurance is only paid on earned income so your idea would only hit those past state pension age still in work. I am past pension age & still in full time work & it was very pleasant to have an effective pay rise of several hundred pounds a month which allowed me to reduce my hours without financial penalty.

A better idea would be to switch some of the tax take from NI to income tax and CGT.  This would have the effect of leaving people with average income unaffected, reduce the tax on the poorest earners, and increase that on all people whose income does not come from employment.  As an OAP I cannot see why people such as myself who can afford it should not pay our share.

squirrelpie

Linton said:

A better idea would be to switch some of the tax take from NI to income tax and CGT.  This would have the effect of leaving people with average income unaffected, reduce the tax on the poorest earners, and increase that on all people whose income does not come from employment.  As an OAP I cannot see why people such as myself who can afford it should not pay our share.

I'd say just abolish NI and load it on income tax et al as part of tax simplification.

molerat

squirrelpie said:

Linton said:

A better idea would be to switch some of the tax take from NI to income tax and CGT.  This would have the effect of leaving people with average income unaffected, reduce the tax on the poorest earners, and increase that on all people whose income does not come from employment.  As an OAP I cannot see why people such as myself who can afford it should not pay our share.

I'd say just abolish NI and load it on income tax et al as part of tax simplification.

Ain't gonna happen.  Increasing the tax take from the average pensioner by 60% would be political suicide.

Silvertabby

molerat said:

squirrelpie said:

Linton said:

A better idea would be to switch some of the tax take from NI to income tax and CGT.  This would have the effect of leaving people with average income unaffected, reduce the tax on the poorest earners, and increase that on all people whose income does not come from employment.  As an OAP I cannot see why people such as myself who can afford it should not pay our share.

I'd say just abolish NI and load it on income tax et al as part of tax simplification.

Ain't gonna happen.  Increasing the tax take from the average pensioner by 60% would be political suicide.

I think this was considered some time ago - but with pension income still being taxed at 20% (for basic rate taxpayers).