The "half your age" rule

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82175523#Comment_82175523

I would think even in 20 years time any Govt/ruling party that made drastic changes to the State Pension, would be obliterated at the next election. So it will not happen. That is the realpolitik, rather than any financial argument.

Linton

There are easier and cheaper ways of reducing the cost of SP if it were necessary such as further increasing the age at which it can be claimed.

If you really believe our government is maliciously evil and not to be trusted there are other actions you should be taking. How about budgeting for transfer of NHS to private healthcare? Rather than dealing with every conceivable eventuality, perhaps it would be safest to emigrate to somewhere better.

In addition to government-generated disruption to your plans, what about the wider world? Ukraine leading to nuclear warfare? Climate change destroying our agriculture and ice caps melting flooding our lowlands? China's growth destroying our industries leading to mass unemployment and rioting in the streets.

At some point you have to accept there is a limit to the extent to which your investments can protect you from future circumstances. Some you know will happen as they have happened before, such as short/medium term market crashes which you can plan for. Others you have to accept that you have to deal with at the time. Otherwise there is the danger that implementing work-arounds for circumstances that never happen may prevent you achieving the objectives for which you are investing.

af1963

https://forums.moneysavingexpert.com/discussion/comment/82175597#Comment_82175597

I tend to agree - see the furore that was caused by means testing just the winter fuel allowance, so governments of all colours will be reluctant to poke that hornets' nest again.

However - if they'd set the means test at £100k, or at the higher tax threshold, I expect the opposition would have been much less. Similarly for any potential means test of the pension - do it at a high enough threshold, and/or tapered, and/or phased in over time, and there's less for voters (especially current pensioners) to grumble about. Especially if they sweetened the pill by using even a little of the cost savings to increase the basic pension.

But it would still be a "brave" minister who tried it.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82175557#Comment_82175557

This makes no sense. If you don't believe the SP is sacrosanct and you think HMG can change the rules why then do you also believe what I say is some sort of dystopian fiction? I have said that it is unlikely in the near future, but who knows in the further future given the demographics and the state of the economy? I admit hard evidence is lacking as of now, but the writing is gradually starting to appear on the wall.

Cobbler_tone

https://forums.moneysavingexpert.com/discussion/comment/82175866#Comment_82175866

I think the phrase "the writing is on the wall" implies a direction of travel supported by evidence. "It's possible because governments can change things" is a much lower bar.

By that standard, the writing is on the wall for almost any policy change imaginable. The challenge is distinguishing what's possible from what's probable.

As for predicting what future Chancellors might do, I'd have more confidence forecasting the weather for 2066!

Anyway, we have reached the end I think. I'll need my state pension as a part of my retirement strategy and you can donate yours to worthy causes, or maybe save it in case there is a new tax for breathing over the age of 85. All the best in your retirement. 😊

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82175675#Comment_82175675

Good point, but the WFH is only worth £100 to most pensioners, so most better off pensioners will hardly miss it. However if they were missing £13K pa - inflation linked, then only really the wealthiest could be relaxed about that.

KevinG

Fascinating though all this discussion about the state pension is (which I do receive, thank you very much), it isn't really directly relevant to my original question, which was on behalf of my 22-year-old son who has just got a fairly well-paid job and is thinking of how best to invest for the future. I agree, a pension is just one part of that and he is considering the other options too.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82176139#Comment_82176139

Yes - apologies. Can't resist a good argument. As afore-stated, I'd be sticking as much as I could into a pension, mainly due to the tax relief. Quite what to invest it in within the pension is a whole different matter, but one step at a time….