Worth buying missing NI years to boost state pension if Labour are going to means test it?

molerat

MeteredOut said:

bakeaway said:

I believe Edward Troup (adviser to Reeves) raised this as an option fairly recently in an interview with LBC

Can you share where this belief stems from?

https://www.express.co.uk/finance/personalfinance/1924552/state-pension-means-test-MPs-pensioners-Labour-Party-Rachel-Reeves

Sea_Shell

Apparently the fiscal "black hole" is to be announced on Monday.   

How will it be filled?   

booneruk

Sea_Shell said:

Apparently the fiscal "black hole" is to be announced on Monday.   

How will it be filled?   

It's very creative to describe the difference between the cost of all the things you want to pay for, and the money you have available as a 'black hole'

molerat

booneruk said:

Sea_Shell said:

Apparently the fiscal "black hole" is to be announced on Monday.   

How will it be filled?   

It's very creative to describe the difference between the cost of all the things you want to pay for, and the money you have available as a 'black hole'

It has always been the usual way to describe that scenario.

pinnks

I read somewhere, on a reputable site, that Sir ET, who was a Director in HM Treasury before heading up HMRC, made a comment about the concept of means-testing the state pension in an interview, not linked to the Labour party.  I cannot recall the details (or where it was for that matter) but it is something that he has in his grey cells as an "option" - Treasury and HMRC policy folk always have options in their little grey cells, one of which is "do nothing".

The article I read reiterated that it is not something in the manifesto, let alone government policy.  And remember, even if it were to become policy, it would go through rounds of consultation taking years, face massive resistance across the political and lobbyist landscape and all parties have committed to giving at least 10 years notice of changes to the pension system.  The scaremongers tend to overlook all of that. 

Silvertabby

pinnks said:

I read somewhere, on a reputable site, that Sir ET, who was a Director in HM Treasury before heading up HMRC, made a comment about the concept of means-testing the state pension in an interview, not linked to the Labour party.  I cannot recall the details (or where it was for that matter) but it is something that he has in his grey cells as an "option" - Treasury and HMRC policy folk always have options in their little grey cells, one of which is "do nothing".

The article I read reiterated that it is not something in the manifesto, let alone government policy.  And remember, even if it were to become policy, it would go through rounds of consultation taking years, face massive resistance across the political and lobbyist landscape and all parties have committed to giving at least 10 years notice of changes to the pension system.  The scaremongers tend to overlook all of that. 

Plus the cost of an official personally visiting each person who could be affected, in order to read out the contents of the advisory letter, check that the recipient fully understands it, and then signs an appropriate document confirming that they have been notified of and fully understand the future changes.  Because we all know that future pension rules notified via the media or by just letters 'don't count'. 

pinnks

That is brilliant!  I can hardly type for laughing

Dazed_and_C0nfused

Means testing State Pension to save £2b/year

Cost of means testing State Pension £3b/year 

😳

pinnks

Dazed_and_C0nfused said:

Means testing State Pension to save £2b/year

Cost of means testing State Pension £3b/year 

😳

Well, that looks like a rock-solid policy then, lol.

On a serious note, I assume that would be for the links to HMRC and people's income, plus staff, plus significant computer system requirements, etc. etc.  But what is also telling is that it would only save £2bn.  Given that the state pension currently costs something like £120bn, that means fewer than 2% would be affected, and that would potentially be the High Net-Worth population who really wouldn't even notice an extra £12k per year, lol 

Dazed_and_C0nfused

pinnks said:

Dazed_and_C0nfused said:

Means testing State Pension to save £2b/year

Cost of means testing State Pension £3b/year 

😳

Well, that looks like a rock-solid policy then, lol.

On a serious note, I assume that would be for the links to HMRC and people's income, plus staff, plus significant computer system requirements, etc. etc.  But what is also telling is that it would only save £2bn.  Given that the state pension currently costs something like £120bn, that means fewer than 2% would be affected, and that would potentially be the High Net-Worth population who really wouldn't even notice an extra £12k per year, lol 

They were just figures I made up 🙃