Tax Misery for State Pensioners

terryw

EdInvestor wrote: »

Hi again terry,

How does this work exactly? Is the means test the same one as for pension credit?

I think it is the same means test. As an example I have put the following figures through https://www.entitledto.co.uk

A) Person aged 60 on JSA of £70 liable for rent £80 and CT £25 will receive Pension Credit of £54.05 and full exemption from rent and CT = net income £124.05

Person aged 60 with after tax income of £190 same rent and CT will receive CTB of £11.81 and HB of £37.13 = net income £134.06

but Person B has no automatic right to "passport benefits" for example she/he will have to pay for dental treatment and glasses.

If Person B receives the £190 via an occupational pension then effectively all those years of payment into the scheme have been wasted.

If Person B is still working, then the position is probably worse by the time we factor
in the costs of actually working - travel, work clothes, meals at work etc, apart from the loss of the passport benefits. Surely at some point, Person B will realize that he /she is actually paying to work, or at the least is no better off financially.

In using the calculator I have used hypothetical examples and figures, but try it with other data. The results will be similar.

Surely, we should be encouraging people who work or save for their old age.

terryw

sleepless_saver

Taffyscot wrote: »

Hi What is fuel allowance please?

Fuel allowance = Winter fuel payment which goes to any household with a person aged 60 or more. If you haven't received it call the helpline 08459 15 15 15 with your/partner's national insurance number.

margaretclare

http://news.bbc.co.uk/1/hi/uk_politics/7355901.stm

EdInvestor

Here's a list of the losers:

The independent Institute for Fiscal Studies (IFS) estimates the losers will include 2.2 million single working people with no children, 1.2 million double-income couples with no children, 700,000 double-income couples with children, 500,000 non-workers, 400,000 single-income couples without children and 300,000 women aged 60 to 64. Changes in tax credits mean that some families with children and some pensioners – but not all – will be protected. However, that is provided they successfully apply for credits and benefits, a procedure that some find too challenging.

Independent



It's interesting to note that the "females aged 60-64" aren't referred to as pensionsers, though undoubtedly they are.

Whereas men like terryw appear to be classed as "non-workers".Elsewhere I have seen both groups described as 'retired early.'

It looks like we're out of the loop.

EdInvestor

margaretclare wrote: »

http://news.bbc.co.uk/1/hi/uk_politics/7355901.stm

The Daily Telegraph says Treasury officials are working on plans to compensate low-earning workers without children who are losing money, following the scrapping of the 10p rate.

This won't help us.

margaretclare

Winners:
Most people/ with incomes of £18,000+
Under £18,000 but aged 65+ and therefore eligible for higher personal allowances
Under £18,000 but with young children and therefore eligible for child tax credits

Losers:
Under £18,000 and ineligible for working tax credits because under 25
Retired early and therefore ineligible for higher personal allowances
Part-timer working insufficient hours to qualify for tax credits

Winners/losers listed on the link I quoted.

'Retired early and therefore ineligible for higher personal allowances'.

It does seem that the accepted definitions point towards 'retired early' being before age 65 whether men or women. Even though, for women, 60 has been the age at which they expected to retire, until recently.

tanith

Thanks for that table Margaretclare it makes it abundantly clear that I will be paying more.. I don't even think Retired Early through ill-health will would make an iota of difference either...

Andy_L

margaretclare wrote: »

Losers:
Under £18,000 and ineligible for working tax credits because under 25

Its workers under about £15k: you've ignored the effects of the changes to NI

tanith

Andy_L wrote: »

Its workers under about £15k: you've ignored the effects of the changes to NI

Thats me stuffed then :rotfl:

margaretclare

Andy_L wrote: »

It's workers under about £15k: you've ignored the effects of the changes to NI

Not I. That list appears on the site I linked to.