What will teachers pension increase by this year? 10% CPI?

Silvertabby

RSTime said:

Ibrahim5 said:

Nothing for the workers. Everything for the pensioners.

All workers (hopefully!) will become pensioners…

Note that the triple lock benefits everyone, not just pensioners, by increasing the amount of their future State pensions.

Next April, if the CPI forecast is accurate, civil service workers will see their CS pension accruals increase by over 10%, and their State pensions accruals by at least 9%.

molerat

Ibrahim5 said:

Nothing for the workers. Everything for the pensioners.

Workers just got a £30 pm increase in their take home, pensioners got nothing.

MX5huggy

molerat said:

Ibrahim5 said:

Nothing for the workers. Everything for the pensioners.

Workers just got a £30 pm increase in their take home, pensioners got nothing.

Only because in April workers started paying 1.25% extra Tax on their income but pensioners didn’t (along with land lords, company owners etc). 

NI needs to be scrapped, basic rate of Income tax 30% with a higher threshold say £16000. 

Won’t happen, pensioners have this annoying  habit of voting. 

Silvertabby

MX5huggy said:

molerat said:

Ibrahim5 said:

Nothing for the workers. Everything for the pensioners.

Workers just got a £30 pm increase in their take home, pensioners got nothing.

Only because in April workers started paying 1.25% extra Tax on their income but pensioners didn’t (along with land lords, company owners etc). 

NI needs to be scrapped, basic rate of Income tax 30% with a higher threshold say £16000. 

Won’t happen, pensioners have this annoying  habit of voting. 

The idea of a universal rate of combined tax and NI was toyed with some years ago, but with the proviso that pension income would still be taxed at 20% (or 40% if applicable).

Don't know why it never happened.

NedS

Silvertabby said:

RSTime said:

Ibrahim5 said:

Nothing for the workers. Everything for the pensioners.

All workers (hopefully!) will become pensioners…

Note that the triple lock benefits everyone, not just pensioners, by increasing the amount of their future State pensions.

Next April, if the CPI forecast is accurate, civil service workers will see their CS pension accruals increase by over 10%, and their State pensions accruals by at least 9%.

Small correction - "civil service workers will see their previous CS pension accruals increase by over 10%". Their current accruals may only increase by 2% as that is current guidance for this years pay award. Obviously this massively benefits older civil servants with larger CARE accrued pension who are close to retirement over younger colleagues who only have a relatively small accrued pension.

westv

NedS said:

Silvertabby said:

RSTime said:

Ibrahim5 said:

Nothing for the workers. Everything for the pensioners.

All workers (hopefully!) will become pensioners…

Note that the triple lock benefits everyone, not just pensioners, by increasing the amount of their future State pensions.

Next April, if the CPI forecast is accurate, civil service workers will see their CS pension accruals increase by over 10%, and their State pensions accruals by at least 9%.

Small correction - "civil service workers will see their previous CS pension accruals increase by over 10%". Their current accruals may only increase by 2% as that is current guidance for this years pay award. Obviously this massively benefits older civil servants with larger CARE accrued pension who are close to retirement over younger colleagues who only have a relatively small accrued pension.

If they are older they are more likely to have most of their pension in Classic which will get no increase until in payment,

molerat

MX5huggy said:

molerat said:

Ibrahim5 said:

Nothing for the workers. Everything for the pensioners.

Workers just got a £30 pm increase in their take home, pensioners got nothing.

Only because in April workers started paying 1.25% extra Tax on their income but pensioners didn’t (along with land lords, company owners etc). 

NI needs to be scrapped, basic rate of Income tax 30% with a higher threshold say £16000. 

Won’t happen, pensioners have this annoying  habit of voting. 

OK, a worker on the median UK salary has a £13 increase in their take home from July after accounting for the NI increase.

So pensioners vote, not something they have the right to that others don't.

Exodi

SouthCoastBoy said:

I think the next few years could highlight the massive difference between govt db, db and dc pensions
 The govt db pensions really are the gold standard when it comes to pensions.

My partner has a govt db pension, I work in the private sector and have a DC pension.

She hadn't really paid much attention to her pension (we're still relatively young) but we looked at it for the first time a couple of weeks ago and... I mean jesus wept, it is absolutely bonkers. I earn about 60% more than her (and contribute equivalently), yet her pension is likely to be 4x+ mine.

While we might be able to go on the odd holiday every other month on mine, her pension could easily see us on a cruise every month with spending money.

I heard the stereotypes about public sector pensions, but as a private sector worker, your eyes will water if you see the actual numbers behind them.

Andy_L

Silvertabby said:

RSTime said:

Ibrahim5 said:

Nothing for the workers. Everything for the pensioners.

All workers (hopefully!) will become pensioners…

Note that the triple lock benefits everyone, not just pensioners, by increasing the amount of their future State pensions.

Next April, if the CPI forecast is accurate, civil service workers will see their CS pension accruals increase by over 10%, and their State pensions accruals by at least 9%.

Although there may be some interesting W.T.F moments when they see their pension has increased by 10% and their salary by far less

Exodi

Silvertabby said:

MX5huggy said:

molerat said:

Ibrahim5 said:

Nothing for the workers. Everything for the pensioners.

Workers just got a £30 pm increase in their take home, pensioners got nothing.

Only because in April workers started paying 1.25% extra Tax on their income but pensioners didn’t (along with land lords, company owners etc). 

NI needs to be scrapped, basic rate of Income tax 30% with a higher threshold say £16000. 

Won’t happen, pensioners have this annoying  habit of voting. 

The idea of a universal rate of combined tax and NI was toyed with some years ago, but with the proviso that pension income would still be taxed at 20% (or 40% if applicable).

Don't know why it never happened.

Out of interest, why?

I know I'm going to be hated for saying this, but the stereotype that 'all pensioners are poor' is outdated in our modern day society. Free travel, tv licenses, fuel subsidies, consumer discounts, government schemes, etc at the same time that housing values have had a once in a lifetime gazillion percent increase. Anecdotally, of the pensioners I know, most find it quite perplexing that despite having very little outgoings, they are given wheelbarrows of public cash. My stepdad puts his winter fuel allowance straight into savings every year, I doubt he's the only one. Obviously there will be also be people that are desperate for this cash.

Plus, in the past lucrative DB pensions were more prevelant. Since then employers have realised how costly they are to maintain and largely non-public employees are contributing to DC pensions... which usually are a sliver of an equivelant DB scheme. You have people that have double dipped on this - life expectancy has dramatically increased whereas they may not have necessarily 'paid their fair share' for the benefit (obviously the longer you live with a DB pension the better, because the amount you get is fixed, whereas with a DC it can poses challenges), at the same time they have been embraced by the public purse (or moreso, their voting power allows them to be ).

It just seems like overkill that people who have better pensions than the current workforce, living in houses that have 100x in value, while living longer than they contributed for, are subsidised by people currently working in a cost of living crisis.

Unfortunately, I'm very aware of this forums demographic, so I'm fully ready to be shot down for this!