Triple lock increase for April 2027 is 3.9% (probably)

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82137434#Comment_82137434

With age-related spending forecast to grow by nearly 50%, from 26% of GDP to 34.5% over the next 50 years, there needs to be a coherent plan for the growing cost of age-related health and State Pension expenditure, which are the major components of spend. Social care needs to be a part of that too.

I have a memory of reading an article in the Sunday Telegraph about 25 years ago, saying exactly what you say above regarding the ageing population.

Unfortunately, I suspect that the nature of politics being what it is, the table above will be interpreted as no big problem for the next 20 years, so no need to do anything until then.

Nothing has changed…..

Also I can not remember how many times over the last 25 years, I have heard people on the news saying hospital bed blocking is a big problem due to the problems finding the right social care for them, and something must be done. But the problem remains.

GunJack

https://forums.moneysavingexpert.com/discussion/comment/82137589#Comment_82137589

Burnham to the rescue with his "we'll sort out social care" mantra maybe??

Baldytyke88

https://forums.moneysavingexpert.com/discussion/comment/82137304#Comment_82137304

If people want a higher pension without paying more tax, then they are dreaming. If they believe that their pension should increase and they are willing to pay for it, then they should increase the amount that they pay into their workplace pension.

The previous Chancellor, Rachel Reeves, pledged that pensioners whose sole income comes from the state pension will not have to pay income tax during this Parliament

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82137543#Comment_82137543

It depends on who receives the additional pension increase. Marginal Propensity to Consume. An individual on the poverty line given one extra £ will spend all, or very nearly all, of that extra £. A multi-millionaire given one extra £ will spend none, or very nearly none, of that extra £.

michaels

Yey - pensioners are all going to be £488 a week year better off. Well that is the way the media present it.

Well in real terms:

6% of pensioners will be £88 a week better off
80% will be £10 a week worse off
10% will be £102 a week worse off

The following year assuming 3% inflation and 3.5% wage increases the vast majority will be either 100 or 200 worse off again.

michaels

https://forums.moneysavingexpert.com/discussion/comment/82137674#Comment_82137674

Yep - the spending will generate more imports and make the balance of payments even less sustainable and increase the future net interest outflows. The saving will lead to investment that will raise future productivity and thus the size of the future pie.

Baldytyke88

Over the past 15 years the state pension has increased by 25% more than wages, which is why the state pension has caught up with the personal tax allowance!

NoMore

https://forums.moneysavingexpert.com/discussion/comment/82137899#Comment_82137899

In what way are you saying they are worse off ? Do you mean they are paying more tax then they were then yes I can see that but that's because they have more taxable income, if you are saying they will have less net income than previously, I don't understand that.

EDIT: Or your comparing different pensioners to each other, where somebody is worse off with the same total income but from multiple sources compared to only the new state pension ? I now think that's how you're doing it. Would be interested in where you got your percentages from and what about the other 4% you don't list

2nd EDIT: but I doubt 80% of pensioners have only exactly the amount equivalent to new state pension but from multiple sources, so that doesn't seem right.

Grumpy_chap

https://forums.moneysavingexpert.com/discussion/comment/82137899#Comment_82137899

Is that a mis-type? £488 a week or £488 a year?

michaels

https://forums.moneysavingexpert.com/discussion/comment/82137934#Comment_82137934

Quite literally worse off, after accounting for inflation your post tax income will buy less than it did the year before despite the apparent increase. Not sure there is any other way to look at this than they you are worse off. April 26 state pension income post tax buys for example 12500 chocolate bars. Chocolate bars increase with inflation for a year, come April 27 even after the increase you can only buy 12490 chocolate bars. You are worse off.