UK State Pension - will it still exist or run dry ?

SouthCoastBoy

The report i attached above outlines recommendations and is quite interesting,well worth a read

Preacher64

The only significant change to State Pensions that I can see would be to Scottish residents in the unlikely event of an Independence referendum leading to separation from the rest of the UK.

The SNP like to tout additional taxes as being “Progressive” and with the current demographic and employment structure in Scotland, maintaining the current SP arrangements would be unsustainable as was outlined in the 2014 Independence blueprint.

In such an event, I can see means testing being implemented and at a relatively low rate which would have a significant impact on a large number of people’s retirement plans.

Albermarle

joep2 said:

It'll be means tested with the state pension kicking in only when our accrued private pension cannot support a living wage. 

The government who did that , would find themselves relegated to being Her Majesties Opposition after the next election and probably a few elections after that.  So the political reality is that no government would do it , even if they wanted to.
They are not even brave enough to means test the Winter Fuel Allowance.

Dazed_and_C0nfused

There's still a few days left to respond to the latest formal review of the State Pension age.

https://www.gov.uk/government/consultations/second-state-pension-age-review-independent-report-call-for-evidence/second-state-pension-age-review-independent-report-call-for-evidence

Stubod

As time progresses I can see the logic that at some point it will become necessary to have the SP means tested?

..but hopefully not for a good few years. I assume that is why the gov. has been making pension schemes "compulsary" over the last few years.

I am not sure it would necessarily lead to a gov. not being electable as long as they provide a sufficient notice period of time for the transition, (20+ years?), and also provide transparent reasons, eg not economically viable, and could also mean the gradual lowering of NI for those in work as they will not need to fund as much for other peoples pensions etc?

Kim1965

Means testing the sp woukd be counterproductive in some cases. Already low paid renters may be no better off in auto enrolement as it potentially denies them benefits.
 Encouraging low paid people to save for retirement only to be means tested may become difficult.
 How could means testing be implemented and at what levels?
 If people do not save, will the benfit system be drastically cut to firce self reliance?
 Like the many posters here, it would be polital suicide to get rid of the state pension. Its value will be reduced and we will wait longer for it i think. 

NedS

I can see it being tapered above a certain level, much like Child Benefit currently is. The SP already effectively tapers by 40% above £50k already due to income tax, so wouldn't be a great stretch to see the remaining 60% tapered away for those with pension income above £50k. Although I think breaking the link between paying in NI to be entitled to something which is then taken away would be extremely difficult - there is no concept of paying anything into the system to be entitled to Child Benefit.

JoeCrystal

resk said:

TimSynths said:

Plan and save for it not being there when you retire and if it is- happy days.

Every generation thinks they're the last before armageddon, and I'd say there's a fair chance that 30 years ago people were confidently informing my dad, now 68, that he had no chance of ever getting his state pension because the country is broke!    

One of my teachers back when I was at school bitterly complained that state pension wouldn't exist when he retires. So it must be something that every generation goes through. What I do see, though, is a lot of changes regarding the pension for the next three decades. I mean, look how different it was 30 years ago! I am trying to go for a retirement goal without relying on a state pension, but that would require a severe percentage of my income that I cannot afford. 

molerat

Preacher64 said:

The only significant change to State Pensions that I can see would be to Scottish residents in the unlikely event of an Independence referendum leading to separation from the rest of the UK.

The SNP like to tout additional taxes as being “Progressive” and with the current demographic and employment structure in Scotland, maintaining the current SP arrangements would be unsustainable as was outlined in the 2014 Independence blueprint.

In such an event, I can see means testing being implemented and at a relatively low rate which would have a significant impact on a large number of people’s retirement plans.

But all current pensioners are going to be paid by the UK government according to Ian Blackford and the rest will come from the magic money tree.

Grumpy_chap

molerat said:

Preacher64 said:

The only significant change to State Pensions that I can see would be to Scottish residents in the unlikely event of an Independence referendum leading to separation from the rest of the UK.

The SNP like to tout additional taxes as being “Progressive” and with the current demographic and employment structure in Scotland, maintaining the current SP arrangements would be unsustainable as was outlined in the 2014 Independence blueprint.

In such an event, I can see means testing being implemented and at a relatively low rate which would have a significant impact on a large number of people’s retirement plans.

But all current pensioners are going to be paid by the UK government according to Ian Blackford and the rest will come from the magic money tree.

Wouldn't the "UK Government" (as such) cease to exist in the event of Scottish devolution?