If this happens...

Stubod

Pensions_matter_2 said:

I cant see how means testing SP could possibly work. What about all these people who have bought added years for one thing (which would turn out to be on a false premise).

..yes but by the time they get around to implementing it, (and I am convinced they will at some point), then they would have already closed off this option...

rickenbacker330

It's kind of means tested already - pensioners with higher incomes will end up paying the state pension back to the government via income tax.

daveshep26

rickenbacker330 said:

It's kind of means tested already - pensioners with higher incomes will end up paying the state pension back to the government via income tax.

That's just stating it's a progressive tax scheme (of pretty blunt type) - my theory is this will eventually be made proportion (say 60% or 70%) is core 'benefit' that everyone gets and a supplementary that's 'means tested' - they'll just never change the former (indexing), while ostensibly the supplementary part will increase - then you get really progressive and means tested, which really ticks Govt boxes and no-one is really all that upset (as they'll be some way of weighting how long a lifetime you've contributed to getting 'normal' universal state pension amount (the core component goes down in steps) )

SouthCoastBoy

I for one will be really annoyed if any of the state pension is means tested. All my working life I thought I had a "contract" with the govt and been given the understanding that I am building up a state pension benefit, to be then informed, sorry you haven't seems unfair 

LHW99

daveshep26 said:

rickenbacker330 said:

It's kind of means tested already - pensioners with higher incomes will end up paying the state pension back to the government via income tax.

That's just stating it's a progressive tax scheme (of pretty blunt type) - my theory is this will eventually be made proportion (say 60% or 70%) is core 'benefit' that everyone gets and a supplementary that's 'means tested' - they'll just never change the former (indexing), while ostensibly the supplementary part will increase - then you get really progressive and means tested, which really ticks Govt boxes and no-one is really all that upset (as they'll be some way of weighting how long a lifetime you've contributed to getting 'normal' universal state pension amount (the core component goes down in steps) )

I always assumed the main SP was the "core benefit that everyone gets" and Pension credit was the means tested bit for those who needed it, and the the NSP was brought in to reduce the number of people who had to be topped up by the means tested benefits.

Stubod

It may not happen for years, but with the current age demographic it is inevitable that at some point the SP will have to become means tested, hence the reason the gov. have been pushing "mandatory/private" pension schemes...(IMHO)

Albermarle

Stubod said:

It may not happen for years, but with the current age demographic it is inevitable that at some point the SP will have to become means tested, hence the reason the gov. have been pushing "mandatory/private" pension schemes...(IMHO)

The changing age demographic, now and going forward, will bring lots of challenges. Inevitably even higher funding for the NHS and social care, with associated higher taxes. Plus some loosening of immigration rules to get more young people to come to UK.
The main effect of more and more people having some kind of private pension, will be to reduce the benefits bill ( pension credit, housing benefit etc) 
If either of these issues will actually affect the SP itself in future, is very difficult to predict. It could well stay, whilst other things change around it.

Qyburn

njm123 said:

Housing Costs, unfortunately those are a combination of a lack of planning in building houses and a supply of cheap money for too long.    There probably is a case for ensuring that those who have actively gained (landlords etc) pay fair taxes on the gain, however most older homeowners will eventually pass the gain on to the younger generations.

Don't you think that is already the case, since a landlord is liable for GCT when selling a property, whereas someone selling their main home isn't?