The government wants to means test its native citizens when they become of pension age, but has no problem with spending billions on people who have just turned up here and never contributed a penny.
Wonder if all these politicians will be subject to this as well like the rest of us mere mortals? Not that they need a state pension when they are on 85k a year for ruining everything for the rest of us!! No doubt they will make sure they are all financially OK and look after their own whilst penalising the rest of us!! Rotten dishonest hypocrites the lot of them. Maybe they wouldn't need to think about clawing some of this money back if they were not chucking millions at those illegal scumbag immigrants who do not even belong here but expect to be looked after and supported without paying into the system! So wrong on every level.
The real question here is what is right and fair, work hard and generate wealth, pay your taxes and you get penalised to pay for people who have done precisely the opposite really doesn’t sit well.
Hi Vander, thank you for your comment and for supporting the channel. Balancing fairness in tax and in pension systems is crucial. It's important that hard work and wealth generation are rewarded, but it's also vital to support those who may have faced different challenges. A fair system should ensure that contributions through taxes are used effectively to benefit society as a whole, without unduly penalizing those who have worked hard and saved. Sounds easy in theory but much harder in practice. You'r right that it won't sit well with most. Please keeop watching and subscribe ;-)
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
It’s not fair to penalise those people who worked hard and saved hard all their working lives in order to have a comfortable standard of living in retirement.
If you don't smoke drink or gamble the government considers you a tax avoider. If you work hard & invest that money and set yourself up in old age now the government wants to take that away.
So who should we penalise? The youth? Problem is.... state pension is a ponzi scheme where they pay early investors with money taken from new investors. But ponzi schemes blow up when they run out of new people coming in. And people are just not reproducing like they once did. If you or i ran a scheme like this, we would go to prison. But for the government.... it's fine. One thing is for sure.... at some point this ship is gonna sink and there will be no money for anyone.
They did that in Australia. So only those who absolutely need it get it. Of course those who wasted their money are also recipients. Most of my friends and colleagues are still working because of this. The UK should do means testing as a way of eliminating the burden and free up funds for more deserving causes.
Unfortunately the way the Welfare State works is that those who work hard are expected to pay for both themselves and others. In Australia half of the population make no net taxation contributions to run the country.
I’m all for equality. If you pay in, then you should receive out. Paying in and getting nothing in return should be challenged in court if it happens. None of us had any choice in paying NI and so the government should have no choice but to pay out. I would definitely fall into the category of getting nothing from the government if it was means tested, but have probably paid in 3-4 times the average fully paid up person over my working life.
The legal term is taking money fraudulently. Paid for 35 years & told it entitled you to a pension but then when you claim it .. Sorry. Sounds a bit like a Indian call centre.
Not so long ago the government run a scheme to help with the cost of changing your old gas boil. To a more up-to-date one.. the guy said I'm a pensioner do I qualify for this scheme the answer was No reason given state pension is not classified by the government as a benefit but an entitlement.. needless to say No help was given as to the cost of the up-to-date boiler.. .
None of us had any choice in paying any form of tax, for nothing in return unless you fail to look after your health & overuse the NHS, and unless you fail in your education & training and end up on benefits. NI is just another form of tax, with as theoretical link to pensions as vehicle tax has to maintaining the roads.
I started work in 1971 and payed NI every year until I reached retirement age at 66. I’ve paid for my state pension, it’s not some means-tested benefit
46 years of contributions.. retired 66.. brought up 2 kids, single mother.. saved money and paid into a pension.. if this happens, there will be a lot of people demonstrating..
Hi Frederick, thank you again for the comment. Any future changes are highly unlikely to affect you as you are now retired. There is no pot of money allocated to anyone based on their contributions as NI is just another tax the Government uses to fund their spending plans. Please keep watching and subscribe ;-)
Hi Veronica, thank you for your comment and for supporting the channel as well as sharing your story. Your commitment is clear: 46 years of NI contributions, raising two kids as a single mother, and saving diligently for a decent standard of living in retirement. If the Government changes the pension system to penalise those who have worked hard and saved, it will surely spark widespread demonstrations across society due to the unfairness. Many like you will feel compelled to defend their well-deserved pensions and I will be there with you. Please keep watching and subscribe :-)
Thatcher had us paying into private pensions only for Gordon Brown to come along and tax it. Government needs to keep its sticky little fingers out of our pockets and then stop forking over tax payers money to foreign interests.
Thatcher also allowed big business to take a "contribution holiday" on employers contributions to final salary pension schemes when the stock market was riding high. . Forget the adage that you must pay in the good times to cover the bad. When the UK stock market collapsed in the 90's and 2000's, final salary schemes racked up huge deficits due to the contribution holidays. This resulted in the collapse of final salary schemes and the pension crisis we now see unfolding in this video
@@andrewhutchinson36Employers were forced to take a pensions contribution holiday because the pension laws did not allow for overfunding of future pension liabilities beyond a certain amount. So, when markets were climbing and returns were good, companies could not make more contributions tax free. The Government feared that firms would reduce their Corporation Tax bills by channelling corporate profits into the works pension fund needlessly. The real harm came from the raid on the pension funds initiated by Chancellor Gordon Brown. Then a tightening up of the pension administration rules after Maxwell et al meant that pension trustees became hugely risk-averse and ended up forced to invest in 'safe', but low-performing, bonds, rather than in riskier, but potentially better investments, such as equities. The final straw for many defined benefit schemes was a prolonged period of very low interest rates, meaning that returns were low and pension funds struggled to be funded well enough to pay out the promised pensions. ,
Brown did worse than that, apart from his one-off tax grabs, he removed the tax relief pension funds received on investments. Nowadays the funds, who were the biggest investors in British companies, hardly invest here at all. When the long-term cost of all his screw-ups is calculated Brown will go down as one of the most incompetent chancellors in history. I hope Rachel Reeves has learnt the lesson of the Brown years
Yeah signed up at 16 yo in 1978, never been out of work, so that's 46 years of contribution, so if I'm not getting a pension I'll have my money back please
You only need 35 years in your NI record for the maximum amount of pension and the amount of the pension no longer has any connection to the level of contributions paid (since the earnings-related additional pension was abolished for those reaching pension age after 5 April 2016).
@@philbrett9227 it was a rhetorical statement, of course there's no pot of money, there has never been successive governments rob Peter to pay Paul, the point is that having no choice in the matter, but being forced to pay into a scheme, that is nothing more than a Ponzi scam, and then being expected to take out additional pensions to provide a decent retirement, doesn't work either, you will be taxed, that's means testing in itself
Hi Chopper, thank you for your comment and for supporting the channel. Your view is echoed by many in the comments but your NI has already been spent on Government spending plans and for retirees. It is highly unlikely any changes will affect you but the concern is for the younger generations. Please keep watching and subscribe :-)
Another youtuber covered this a while ago...that when you put your money into the bank it is no longer your money. Neil McCoy Ward I think it was, who discussed it. You have to hand it to them, they're very clever - they've got it all sewn up nicely in their favour. I remember when I used to get my wages in cash in a brown envelope every week. Then a cheque - which most people would pay into the bank. It transitioned over time, to the majority of people having their wage put straight into their bank account. So effectively, the employer just gives the money straight to the bank. Not that it's really the employer's money anyway, if it's already sitting in THEIR bank! It's just banks sending numbers ("money") to other banks and the account holders don't really matter at all. Incredible stuff really, huge con.
Hi Andy, thank you for your comment and for supporting the channel. You rmoney is in digital format in the bank as they will loan your money out for mortgages etc, charge interest on the loan and pay you an interest on your money in the account. The difference and the profit is called their net interest margin, so the bank will "spend/invest" your money. Our NI deductions have already been spent on Government spending plans. Please keep watching and subscribe :-)
When I was paying in for 35 years it was not called a benefit it said to be for our retirement. Only recently have slimey politicians started to call our pension a benefit. If we are not to get a pension we were mislead and deserve our NI payments back!.
Hi Neil, thank you for your comment and for supporting the channel. It was legally defined a benefit under the Social Security Contributions and Benefits Act 1992. Some benefits are already means tested in the UK which I alluded to in the video. Time will tell how the state pension will evolve. For now, the preference is to keep increasing the state pension age for those can can still keep working to that age of course! Please keep watching and subscribe ;-)
If it's a benefit why do we have to pay for dentists and why do we pay full rate and water rates can't use a food bank don't receive cost a living payment so no it's not a benefit I wished it was then we could have heating allowance, if you and your husband or partner both received full state pension even if you don't have a private pension or savings you can't receive pension credit.
@@gabriellerochelle4367 It may have the title BENEFIT, but we have paid contributions to it for 35 years so we are fully entitled to it or our contributions plus 35 years of interest back. The Government could not afford to pay all that back.
@@Economese , If it was not legally defined as a benefit until 1992, That means it was not a benefit for my first thirty years of work and they owe me big time. Previous to that we were always told we were paying in for our future pension
I paid National Insurance contributions for 40yrs on the basis that my contributions were going towards paying my state pension. It is not a benefit it is a pension. This is what I was told at aged 18yrs; during my time working at Department of Health and Social Security awarding widows' pensions in my 20s; and when I retired at age 60yrs. At no time was it referred to as a benefit. 'Benefits' were supplementary payments for lower income groups and for those with disabilities etc. The problem lies in the fact that successive Governments over the years have robbed our pension pots to pay for other things and now there is no money left to pay our pensions. That is their problem and not ours. Funny how the UK Government can always find money to fund wars, usually against the will of the majority of UK residents!
Hi Viv, thank you for your comment and for supporting the channel and for sharing your story. NI is just another tax and it has already been spent by the Government. The state pension is a pay-as-you-go system which depends on future generations paying our state pension - as we have done for previous generations. There is no pot with yor name on it. I understand your frustration. The state pension has indeed been viewed as a right earned through NI contributions, but the legal definition change in 1992 created confusion. It's crucial that the government ensures transparency and safeguards the pension system to honor the contributions of hardworking individuals like yourself. Pleae keep watching and subscribe :-)
Hi User, thank you for the comment and for supporting the channel. You're right (sort of) that while the state pension isn't currently means-tested, any additional income is subject to income tax, effectively reducing the net benefit for those with higher incomes. My point was that a measn tested state pension benefit means you would qualify for a lower state pension from the outset based on an assessment of income and assets. Please keep watching and subscribe :-)
Hi Susan, thank you for the comment - I think the UK population may be listening to you and paying attention already. Please keep watching and subscribe ;-)
Which ones? Note, the government (not party). This is being organised by the civil service believe me. The government will be able to continue to badly manage the country and not give a hoot about the 'claimants'. I never had a holiday until I was 48 because I saved for my future. What a fool I was!😮
Reform want an Australian pension system, look at their policies. They are the only party pushing for it and yet people will probably still vote for them.
Hi Allan, thank you for your comment and for supporting the channel. They can either measn test the pension or keep extending the state retirement age - either way will be unpopular and stoke resentment. Please keep watching and subscribe :-)
Means testing NO! NO! NO! we are NOT in the middle of a world war, we are the 6th (so they say) richest country in the world, so there is NO NEED for a means test. If there is a shortage of money You can deduct it from politicians wages, or am i being too cruel to the politicians👹👹.Old proverb: God helps them that helps themselves, BUT god help them that get caught helping themselves.
Over my working life I’ve paid many hundreds of thousands of pounds in tax and NI and have never made a claim on the system. I have also saved into pension schemes to supplement my state pension when it becomes available. State taxation has been the biggest draw on my income and I have never made any claims on the system or made serious use of the health service. I would be furious if the state pension became means tested as I would end up losing a large part of my income in old age. State pension needs to be recognised as an entitlement not a benefit. State pensions are affordable they need to be prioritised over Government squandering which is just transferring tax payers money into private hands.
Well said I totally agree, as an older person in my 70’s who has always work paid my taxes and national insurance and saved for my retirement I too would be furious if this was implemented. I already have a form of means testing on my state pension because of the way it is treated by the tax system which means I loose part of my personal allowance and there pay more tax on my private pensions and my small Salary from my part time employment.
@@patmartin9727 I recall my father having the same. I guess it will happen to me as well when state pension age comes around. That’s already means testing. What more do they want? I’ll be damned if they start looking at my savings that I’ve already paid tax on.
Hi David, thank you for the comment and for supporting the channel. There is legislation going through Parliament at the moment allowing for greater scrutiny of bank accounts for assessing benefits and it is likely to be with us sooner than we think. All in the name of safety and security and fairness of course. Keep watching the channel for developments and subscribe :-)
Hi Pat, thank you for the comment and for supporting the channel. I hope you are enjoying your retirement. It would be highly unlikely to affect those who have already retired, but it could affect younger people. There is such negativity that the IFS stated that 33% of people don't think there will be a state pension AT ALL in 30 years - let alone means tested! Stay healthy and have an amazing retirement. Please keep watching and subscribe :-)
After paying taxes for 40 plus years the very minimum should be a livable pension. Not a pension that is only payed to the workshy & feckless. Telling people if they work too much they get no pension is probably the dumbest thing you can do in a capitalist country.
Absolutely everything belongs to the government. Your money. Your old dvds you put on eBay. Your bodily autonomy. Your thoughts and how you express them. They are coming for it all and it's happening fast.
Yep. "You will own nothing and be happy". And you might get to eat some bugs along the way too, if you are lucky. Concerning, how quickly it's all coming to fruition.
Hi D, thank you for the comment and for supporting the channel. Your concerns about Government overreach are shared by many. A comedian once said "its a big club and we ain't in it!" Please keep watching and subscribe ;-)
If eating bugs is so healthy then shouldn’t they be rolling this out in countries that have plagues of locusts then they can readily swap from one food source to another and the amount of financial aid from us could be slashed dramatically! That way they’d have readily available food sources whether swarms of locusts hit them or their crops in the years they don’t have locust problems! Also I’m assuming that the locusts would then be deliberately bred for consumption across many nations, and seeing how many things seem to ‘accidentally’ escape into the wild, many more countries would become affected with crop losses. Imagine how much fun that would be in the American mid-west 🤔 Hunger games are definitely on the agenda in that amazing ‘new world order’ they have planned for us. You can be assured none of the ‘elite’ will have bugs on their menus, though a goodly number may be seen holding them telling us how nutritious they are (especially from Hollywood) but you’ll never see them bite down and ingest them, that’s only for the poor folk!
@@D_B_Cooper that includes your children! If you get divorced the state will decide who is to look after them, or put into care if necessary, the children have no say in it, government experts decide!
If they do this then everyone who gets penalised should be entitled to every penny they paid in paid back. How this would be legal I have no idea, its theft!
Hi Harassed, thank you for your comment and for supporting the channel. Feeling that changes to the pension system might be unfair is understandable. If significant alterations are made, there should be measures to ensure those affected are treated fairly. However, legally demanding a refund of all contributions is complex as NI is just another tax to fund the Government spending plans and has already been spent. Please keep watching and subscribe ;-)
If this is true then there will be an uproar - how the hell can we (actual people who worked day in day out) be screwed to pay for people who have never worked ffs
Hi Adiem, thank you for your comment and for supporting the channel. It's important to ensure fairness in the pension system. t's understandable to feel concerned about unfairness with the state pension and if there are any changes to pension policies, they should be transparent and fair to maintain trust in the system which is starting to crumble. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
Hi Stuart, thank you for the comment and for supporting the channel. There must be an incentive for everyone to contribute into the system. Clearly, there are fewer people paying and working whilst there are more people claiming the state pension and living longer. The maths do not add up over the long-term. If the deficit keeps increasing, paid for by the Government, then how does this get repaid? More taxes? Please keep watching and subscribe :-)
Hi DC, thank you for the comment and for supporting the channel. I can feel the frustration and that is a response from many. However, we need to take responsibility for our own financial future and be prepared for any curve balls along the way. If you can foresee having less money in retirement, we should use that heads up as the trigger to save more so we can have the lifestyle we deserve. Please keep watching and subscribe :-)
A lot of people do that - and they're no-where near retirement age - called Dole Dwellers I believe......or you also have the economic parasites from abroad - also known as 'gimmegrants' !
Exactly right! Imagine a private pension company trying to pull this scam - you pay in all your life and then they turn around and say no mate, sorry, but you have enough money to live on already, so you can't have the pension pot you've paid into all your life.
@@randomnesspersonified Yes, but here's the point, Private companies are not allowed to run Ponzi schemes. The Gov don't put your money away.... they use new investors, to pay the old ones. And they are running out of new investors because the young can't afford to have kid. Gov have been using immigration to bring in the new investors while pretending they don't like this immigration and pretending that they want to stop it. It's all a problem of demographics. They need more young contributors to pay the old ones who are living longer. And like all pyramid schemes,it will come crashing down. Currently, this "means testing" is just a way of them buying more time. But the reality is.... they are broke. Your moneys gone. It was spent the day you deposited it!
Pensioners of today may remember how thair parents scrapped and scraped to save for retirement and if you fell short and asked for help you were means tested. If you had a nice table and chairs ect you were told to sell them to make money. Also fridges, freezers and televisions were all classed as luxuries. There will be some heart break.
It’s frustrating. The idea that after all these years, we could end up with less than we expected-it just doesn’t seem fair. I’ve been wondering how to protect what we have, especially if they go through with this means testing.
That’s what’s been on my mind too. We’ve been counting on the state pension as a key part of our retirement income, but now it feels like everything’s up in the air. I’ve started looking into other ways to secure our financial future, just in case.
I’ve been thinking about how this could impact not just us, but also our kids. If we end up with less from the state, it could mean dipping into our savings more than we planned. It’s a lot to consider.
And with inflation and the cost of living going up, it’s getting harder to stretch our money as it is. I’ve been worried about how we’re going to manage if we have to rely less on the state pension and more on our own savings.
Hi again L, thank you for supporting the channel. The state pension has been defined as a benefit since 1992 and that may now come with strings attached as it is part of the social security system now. Let;s hope that any changes are communicated decades in advance. Please keep watching and subscribe ;-)
Hi Banthah, thank you for the comment and for supporting the channel (and for the positive humour). Agreed - Please take a ticket and form an orderly queue - BTW I have sharp elbows so no pushing in! Please keep watching and subscribe :-)
Your NI Contributions don't pay for your retirement. They paid for other retirees at the time you were paying them. People currently paying NI Contributions will be paying for current retirees. That's how the system works.
Hi Glenn, thank you for your comment and for supporting the channel. Your NI has already been spent and we will reply on the younger generations paying NI to fund our state pensions. A full pension may be available but at what age as this also keeps increasing as the preferred Government option. Please keep watching and subscribe :-) Our next video is a Gneeral Election special which you might find interesting.
Unless , perhaps if you have a largeish private pension , then you may lose...£10 ,for every £500 over £30,000 ? That's the govt's plan , it is thoughtby some .
I am in my early 60s and retired at 53. Lots of people gave me pushback because they had difficulty grasping the concept of not working if you don’t have to. I looked at my life as stages. I earned everything I have now through a lot of hard work, but I owe it to myself to “stop and smell the roses” in my final stage of life. In my case I left the country after I retired and live in Latin America. It allowed me to get away from all the negative things happening in the UK while appreciating my new environment. I have yet to meet anyone who regrets retirement.
Hi Austin, thank you for your comment and for supporting the channel and for sharing your story. It's inspiring to hear about your journey. Many people struggle to understand the concept of early retirement, but you've shown that it's possible through careful planning and hard work. Embracing a new environment and getting away from the negative aspects of life in the UK sounds incredibly rewarding. Your approach to life stages is a great reminder that we owe it to ourselves to enjoy the fruits of our labor and "stop and smell the roses" in our later years. It's encouraging to know that you haven't met anyone who regrets retirement, which speaks volumes about the value of taking time to appreciate life. I hope your story can motivate others to carefully plan and consider their own paths to a fulfilling retirement. Please keep watching and subscribe. Our next video abour the General Election goes live today which you might find interesting.
Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
This is true. I'm in my mid 40's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
I'm sure the idea of an investment-Adviser might sound controversial to a few, but a new study by Motley-fool found out that demand for Financial-Advisers sky-rocketed by over 42% since the pandemic and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 880k within 16-months from an initially stagnant Portfolio.
Trustworthiness is the issue: Entrusting someone with your finances requires a high level of trust. It can be difficult to determine if a financial advisor is reliable and has your best interests at heart. It's essential to find an advisor who operates with integrity and adheres to ethical standards. But you seem to have it all worked out good for you, so I’m by my screen waiting for your recommendation.
Basically ur better of going on benefits for most of your life. Like some people I know cos they thought it was their right. If you work hard and have savings you will be punished. Don't think it can getting worse
Naahh...4 kifs , single , of course, this person would never get a nett income better than benefits ....housing allowance being perhaps the big one , esp. in the S.E.
Yeah when i was younger a lot of girls would deliberately get pregnant and say i want a council house and pay nothing. But the likes of you and me having the pleasure of paying for them what a lovely system @normanpearson8753
Hi Cliff, thank you for your comment and for supporting the channel. Relying on benefits might seem easier in the short term, but it can limit your financial independence and opportunities in the long run. Working hard and saving, despite the challenges, builds financial security and resilience and less reliant on the State. Self-esteem and respect don't have a value attached to them. Please keep watching and subscribe :-)
Hi Whalewraith, Thank you for the comment and for supporting the channel. That comment has stuck with me too - why use that particular wording - are retirees are no longer working does that mean future retirees could be fair game in the future? Please keep watching and subscribe :-)
I'm pretty sure that they are referring to tax avoidance and evasion, offshored for tax purposes companies and other scams and schemes favoured by tories.
As my wife and I were never going to get anything other than mediocre company pensions to top up our state pensions, after both getting made redundant by the age of 50, with no prospects of ever getting decent work or indeed any meaningful work thanks to ageism we sold up in the south East and moved to a very modest house in the East Midlands, all our other money and one small inheritance was put into ISAs. These ISAs and tiny company pensions give us circa £4 kpa each on a drawdown basis, and will be just about gone by age of 90. If our pension is going to be cut on account of saving we will either buy a better or more convenient house leaving us with little savings or we will spend it down beforehand.
Hi Steph, thank you for your comment and for supporting the channel and for sharing your story. Your proactive approach to managing your finances is commendable. It's essential for the Government to recognise and support those who have diligently planned for their retirement. Policies should encourage saving without penalising those who have been responsible. Hopefully, any future changes will consider the efforts of people like you and ensure that saving for retirement is always rewarded, not discouraged. It is unlikely that a means tested state pension will affect you, but I hope that there is support for you if you need it. Stay strong. Please keep watching and subscribe :-)
Hi Isherwood, thank you for the comment and for supporting the channel. Taxing pensions can feel unfair, especially when you've saved responsibly. People rely on these savings for home repairs and other necessities. It's important to recognise that people paid into state pensions expecting security in retirement, and additional taxation can feel like a breach of that trust. Your concerns highlight the need for a fairer approach to pension taxation and the state pension specifically. Please keep watching and subscribe :-)
state pension roughly £11,000 a year, by increasing qualifying age from 65 to 67 recently the government have already taken £44,000 pounds off me and my wife.
Hi Jh, thank you for your comment and for supporting the channel and for sharing your personal story. Thsi highlights some of the financial stresses on the state pension. The Government policy is to raise retirement ages, rather than means-testing the system. When the retirement age is 68+, how many other couples will have to accept paying into the system for more years only to claim for fewer years? Please keep watching and subscribe ;-)
Just think, if the government had paid my national insurance contributions into a diversified portfolio of investments for the last 20 years and continued to do so for the next 25 years, instead of using them to pay for some roadman's 15 illegitimate kids, they wouldn't need to means test my state pension.
Hi Log, Thank you for the comment and for supporting the channel. I understand your frustration. Investing contributions in diversified portfolios could be a forward-thinking solution for future stability starting at birth maybe and let compounding work its magic? We need innovative, sustainable approaches to pension funding that ensure fairness and reward lifelong contributions but it won't be easy to keep everyone onside with no financial disadvantages or poorer outcomes. Please keep watching and subscribe :-)
The problem was that when they started to pay out old age pensions, they used the current receipts to pay for those retired or retiring. This works well enough if there are relatively plenty of workers paying into the system and few pensioners. We have an ageing population and a falling birth rate, hence the problem. One solution for the future would be for the State to pay in, say, £3,000 or £4,000 into an individual pension fund for every newborn from birth to 18 years of age and investing it in equities for those years and forwards. There would be plenty by the time that person reached their retirement age of say, 70. Perhaps richer parents would have to contribute instead of 100% from the State if wealthy enough.
NI contributions can only be used to pay for a limited number of benefits - mainly the State Pension, but also Jobseeker's Allowance, and Employment and Support Allowance when those benefits are paid on the basis of the claimant's NI record. Most other benefits including Universal Credit are paid from general taxation.
Hi Jo, thank you for your comment and for supporting the channel. It does seem that the system is set up to penalise those who take the responsible route and plan for their old age. By proposing means testing for the state pension, individuals who have saved and made provisions for their future are being punished, while those who haven’t are rewarded. This creates a disincentive for responsible financial planning and undermines the principles of fairness and personal responsibility. Please keep watchin gand subscribe :-)
Britain has the lowest state pension across Europe as it is!!!!!!!!! That idea is just bonkers, but it's an idea that I suppose will find political traction. The state pension is not enough for a person to live on per week. The minimum wage is between £5/6K more per year. So there needs to be a real and grown up debate on how to deal with that anomaly.
Hi Chris, Thank you for the comment and for supporting the channel. You raise a crucial point. Britain’s state pension needs serious attention despite being amongst the lowest in Europe. Minimum wage is £11.44 per hour x 37 hours per week x 52 weeks = £22K per year vs state pension of £11,541 per year. How do we redress the balance without breaking the bank and our backs in the process? An adult conversation indeed but are the current crop of politicians willing and able? Please keep watching and subscribe :-)
@Economese my rent alone is £14,400 a year imagine paying that with state pension. It would only leave the person on minimum wage with just over £7k to pay for bills and food.
That is not true at all, in Sweden the pension is circa £600 a month. The difference is that you have to pay in through working and contributing. The pension is based in him much you have paid in. If you have not worked you will be destitute when retired.
UK state pension is already means tested via the progressive tax system, so recipients of higher pension income, including State Pension are taxed more. Alternatives of stopping State Pension for those who have contributed to it their whole lives would never be forgotten by use senior voters.
Hi Mushroom, Thank you for the comment and for supporting the channel. You make an excellent point. The progressive tax system already ensures that those with higher incomes pay more, including on their state pensions. Preserving the state pension for lifelong contributors is crucial for maintaining trust and fairness. We should be able to focus on enhancing the system without compromising the benefits retirees already rely on. Is the social contract about to be rewritten? Please keep watching and subscribe ;-)
Underrated comment. Hasten to add that if more individuals have been auto-enrolled then the present day, there may be a larger proportion of the population being taxed via the progressive tax system (which could contribute to funding the state pension).
@@Random_Musings-z5x The state pension is only funded from NI contributions although if they are insufficient to cover the cost in any year the deficit is topped-up from general taxation. It's been many years since a top-up was required.
Its simple as this.If they decide to do this I will be contacting my MP and they wont dont dare do this. There testing the water by putting rumours out....Bring it on but give me back all my Ni contributions at higher tax rate please for 37 years.
Hi James, thank you for your comment and for supporting the channel. Sadly the NI is just another tax despite the name and it has already been spent. We need future generations paying NI to pay our stat epensions. Curently the preferred option is increasing the retirment age in response the pension crisis. Please keep watching and subscribe :-)
Labour will bring this in as they are a Party of Means Testing !! The triple lock will only apply to those on Pension Credits along with Winter Fuel payment. They will also increase TAX on any savings or investments but do not worry as the Money will go to the poor who Won't Work can't Work and no intention of Working..
Hi Robert, thank you for your comment and for supporting the channel. Labour's manifesto emphasises protecting the triple lock and supporting pensioners, but concerns about means testing and increased taxes on savings are valid. We should give them the "benefit" of doubt and judge on performance. Please keep watching and subscribe. :-)
I wonder if the recent announcement by M/s Reeves re withdrawing the pensioner's winter fuel allowance is actually legal, as this was rushed out with no parliamentary discussion, & was not on their manifesto so on the face of it it was a idea dreamed up on the back of a fag packet within a couple of days after getting elected, to punish pensioners & reward public sector unions members! Labour never changes, 2 days to work out the details of a £20 Billion "black hole", that is so unrealistic, it takes more time than that, people have such short memories, but this lot seem even worse than Blair's Government
Means testing never works and is impossible to administer. Once again if they try to implement it will be those who have never worked and have no private pension that will benefit.
It isn't impossible to administer but it is expensive and open to fraud due to people failing to declare income and capital they have - sometimes deliberately and sometimes in error.
Hi Bethers, thank you for your comment and for supporting the channel. "eans testing is often complicated and inefficient to administer. Implementing it for state pensions could unfairly benefit those who have never worked or saved privately, while penalising responsible savers. The Australian system, with its combination of the Age Pension and superannuation, successfully supports retirees with means testing. There will be a lot of resentment as well if implemented as it will be deemed unfair. Please keep watching and subscribve ;-)
Problem is some people might retire early on the basis of company pension plus state pension. Those people may have stayed in work if they had known that state pension was going to be scaled back or fully taken away. But once they are in that over 55 age bracket it’s likely too late to get back into the workforce at a level that will allow them to cover the shortfall. I really can’t see it happening unless with a huge lead time.
Hi David, thank you for the comment and for supporting the channel. It's understandable that changes to the state pension system can create concerns, especially for those nearing retirement. However, means testing the state pension could help ensure that resources are allocated fairly and sustainably, providing more support to those who need it most. There is a 10+ year timeframe about state retirement age increases but more time might be needed for such radical means tested changes. That said, the system is not sustainable in the current format. Please keep watching and subscribe :-)
Governments don't tend to think long term. Most individuals don't intend to be around when the chickens come home to roost. It's why kicking the can down the road is such a popular tactic.
Hi Carla, The Government are already increasing the state pension age from the current 66, to 67 and onwards to 68 and beyond. There needs to be trust in the system which I feel is crumbling at the moment so make sure you have altrnative arrangements in place so you can have a dignified retirement to live on your terms.
Hi David, thank you for the comment and for supporting the channel. I am afraid that we might sleepwalk into a digital currency world and cash will be a thing of the past. Please keep watching and subscribe. :-)
Hi Jason, thank you for your comment and for supporting the channel. I think there are several people in the comments who would gladly do the same. Opt-out and let us invest the money elsewhere. As the NI has already been spent that might not be an option though - sadly. Please keep watching and subscribe :-)
@@Economese Just checked state pension forecast - 41 years' contributions, estimate 261.43 per week. Checking the NI contributions, the last few years have been about 5k each year, so I would be happy with that option!
What's the point of working all those years paying ni contributions, going without to save a little for retirement or pay into a private pension if they are going take it from you. If you have paid into and have the required number of years everyone should get the same amount of state pension those who have not should get a slightly lower rate.
@@huskyhooligans999 I have a sister in law, she is retired even though she has never worked since leaving school at age 15.she has never married but has 3 grown up children. her sister another sister in law, worked all her life, she was married her husband died in his 40s, they had a mortgage, she worked 60 hours a week to pay the mortgage and support her kids, when she retired she found that because she owns her own home she does not qualify for extra benefits, her sister gets extra pension credit free dental treatment and free glasses. the other one does not qualify for pension credit free dental or free glasses because she owns her own home. so if she had never worked she would be better off now,
What a fantastic article Economese. I paid National Insurance for more than 40 years and I am still paying tax at 76 due to having a Self Invested Pension Plan (SIPP) which I draw upon each year. The State Pension added to the money I draw from my SIPP puts me over the tax threshold. The SIPP is money I save saved from my income. I was a victim of Gordon Brown's tax raid on self-invested pensions and I dread the latest Chancellor doing the same. Of course I could have squandered my hard earned money on booze, fags and gambling and then rely on the state for handouts ...like millions of those who just voted Labour.
Hi John, thank you for your comment and for supporting the channel with your kind words and for sharing your story. It’s indeed frustrating to see responsible savers potentially penalised. The concerns about past tax policies and the impact on self-invested pensions are valid when Gordon brown damaged pensions and taxation within them which is still being felt today. It’s crucial for the Government to recognise the efforts of those who have saved responsibly and to avoid implementing measures that unfairly burden them. The system is not fair for everyone, but dignity and self-respect are hard won and last forever - so well done for making sure you have a retirement on your terms. Our latest video released over the weekend is about Banking Big Brother and the increased surveillance on our bank accounts which you might find interesting. Please keep watching and subscribe :-)
Many countries have tried to deal with the pension conundrum....increasing pension age as we are in the UK...or increasing the number of years to qualify as Ireland and the Netherlands do ...but it still remains an enigma....however the real pension time bomb is the pensions in the Public sector ..some civil servants will receive a pension of 1 million pounds ...AND claim their state benefit...
Hi Terry, thank you for your comment and for supporting the channel. You're right, the pension issue is complex, and many countries are struggling with it. Increasing the pension age and having qualifying years are common strategies. However, the significant pensions some public sector workers receive can add strain to the system which are funded by the taxpaer. Balancing fairness and sustainability in pension policies is crucial to addressing this "pension time bomb" while ensuring that all retirees are adequately supported. The new Government has promised pension reform. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
Hi Mark, thank for the comment and for supporting the channel. A means-tested state pension discourages saving because people fear that their savings will reduce their pension benefits. To encourage saving for retirement and increasing private savings and investment, there should be more tax incentives, employer-matched contributions, and financial education to highlight the long-term benefits of personal savings for retirement. The system is creaking so we need to be ready should this ever come to pass. Please keep watching and subscribe :-)
In Australia we also have Superannuation where workers allocated pay rises to be paid in every pay day but not accessed until retirement. Now the Government keeps eyeing this massive pot of workers money and are trying in every devious way posdible to getbtheir grubby hands on it❗😕😡
Hi DOwn, thank you for your comment and for supporting the channel and sharing your knowledge. The superannuation is a vital part of Australians' retirement savings, built up through years of hard work. It's crucial that this money remains secure and solely for the benefit of retirees. Any Government attempts to access these funds should be met with strong opposition. Let;s hope it doesn't happen - keep me posted. Please kepe watching and subscribe ;-)
We've all been told to be responsible to plan our retirement. If state pension was part of that planning then the state intervened in our personal planning process. If the pension is then reduced or removed at the point of retirement when we cannot change our past planning decsions then we have been stuffed by the state. Our responsibleness would have been rewarded with reckless irresponsibility. Given the state pension often makes up a third to a half of retirement income we'd need to know at least 20 years in advance if it wasn't going to be there.
Hi Jeff, thank you for your comment and for supporting the channel. You make an important point. Many have responsibly planned their retirement with the state pension as a crucial component. Changing or removing it at retirement would undermine years of careful planning, leading to financial insecurity for many. Any significant changes to the state pension system should be communicated well in advance, ideally 15-20 years, to allow for proper adjustment and advance planning. It's crucial to uphold the trust and stability that retirees have relied upon. Please keep watching and subscribe :-)
I worked and paid into pension for 45 years, my state pension as of now £170 per week, bloke in the pub who has never held full time job, cash in hand,no stamp, £250 per week, tell me where I went wrong by working most of my life?
Hi Gary, thank you for your comment and for supporting the channel. The current system does seem unfair when it is abused. Means-tested state pensions aim to support those with low or no income in retirement, which can lead to situations where individuals who haven't contributed as much still receive substantial benefits. You can't place a price on dignity and self-respect, so congratulations on having such a long working career. I hope you get to enjoy a dignified retirement. Please keep watching and subscribe :-)
There is a thing we used to call the social contract. I’ve saved over the years based on the sure knowledge of a state pension for which I’ve contributed disproportionately. If the government now wishes to retrospectively renege on that contract I’d suggest something close to anarchy would result. I’m 65, by the way.
Hi Ian, thank you for your comment and for supporting the channel. The state pension has been a cornerstone of the social contract, promising security for those who have contributed throughout their working lives - as is the NHS. Any move to undermine this commitment could lead to significant civil unrest. It's crucial for the Government to honour these long-standing promises to maintain trust and social stability, especially for those like you who have planned their retirement around them. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
I worked in Australia solidly for 30 years . Am now living back in the UK where I worked for 20 years . How ever I retired 65 . I get approx £860 pm . I have my own. House. However when I tried to claim my Australian pension. I was told because am living in the UK just now am not allowed to claim any of my pension . The Australian pension scheme only benefits two class’s of people 1: unemployed 2: Politicians they have the most,generous pensions,and have sent things up so they pay very little taxes. And that a fact.
Hi Bob, thank you for your comment and for supporting the channel and for sharing your story. It’s maddening to hear about your situation after working hard for so many years in both Australia and the UK. The rules surrounding pensions can indeed be complex and seem unfair at times and unequally applied. The Australian pension system does have strict residency requirements which can prevent people living overseas from claiming their pensions, unless certain conditions are met. This can feel particularly unjust when politicians benefit from more generous arrangements - as always. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
Hi User, thank you for your comment and for supporting the channel. It’s great to hear that you are receiving pensions from both the UK and Germany. The ability to claim pensions from multiple countries typically depends on the specific agreements between those countries and the rules of their pension systems. Germany and the UK have agreements that facilitate pension claims for individuals who have worked in both countries - which could be due to the EEA region? Australia's pension system has different rules and more stringent residency requirements, which can make it challenging for those living abroad to claim their pensions. These requirements are part of Australia's policy to ensure that their social security benefits are primarily available to residents. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
Can you imagine if your private pension company said we will means test you for your pension we promised you 35 years ago and give your pension to those who havnt paid in anything or little. It seems in this country that the more you try to look after yourself the more they shaft you to give to those who have never worked a day in their lives.
Hi Alpha, thank you for your comemnt and for supporting the channel. It's disheartening to think about changes that could undermine the promises made when you first invested in your pension. It's essential to have a system that rewards individuals for their long-term planning and contributions. While supporting those in need is important, it shouldn't come at the expense of those who have diligently saved for their future. A fair and balanced approach is necessary to ensure everyone receives the benefits they've worked hard for while still maintaining a safety net for those genuinely in need. Our next video is about the 10 Rules of Money which you might find interesting. Please keep watching and subscribe ;-)
It not fear I work 50 years pay my tax and N/ and still pay tax as a penisoner i and why can’t pensioners have a little bit of savers it wrong the government needs to sort the thousands who not working and make them work for the money.
Hi Gladys, thank you for your comment and for suypporting the channel and sharing your story. After working and paying taxes for 50 years, it's frustrating to still face financial challenges as a pensioner. It's important that the Government recognises the contributions of retirees and allows them to save without penalty. I am more concerned about the younger generation who may not get to enjoy a state pension in the current format. Please keep watching and subscribe :-)
Thank you for your reply and yes I agree what you saying about young people l have a son and he work really hard and when he was 14 year old he had a paper round. I know I got a good lad., 🌹
Hi Alan, thank you for your commnt and for supporting the channel. According to the Home Office Media, the UK Government is currently spending approximately £8 million per day to house asylum seekers, including those who have entered the country illegally. This figure represents a significant burden on the taxpayer, amounting to around £1.5 billion annually. That is a lot of state pension. Please keep watching and subscribe ;-)
Hi Tees, thank you for your comment and for supporting the channel. Uncontrolled immigration is unlikely to help the current state pension crisis as the UK needs more people contributing NI due to demographic changes such as fewer workers and falling birth rates. Please keep watching and subscribe ;-)
So people like myself who has worked all my life, saved for my retirement may well be penalised. So I may as well have not worked all my life, and saved money and invested, for what? If this becomes reality there will be civil unrest in our country. We can waste money on keeping illegal migrants at a cost of £8m per day on people that shouldn't even be in the UK. Makes my blood boil.
Hi Lee, thank you for your comment and for supporting the channel. I understand your frustration regarding means-tested state pensions. It's disheartening to think that responsible saving and investing might be penaliszed. The issue of illegal migration and its costs is complex, but addressing it should not come at the expense of penalising those who have planned for their future. Your thoughts have been echoed throughout the comments and any changes are unlikely to affect those of us close to retirement. I fear for the younge rgeneration who may not get the same state pension support. Please keep watching and subscribe :-) Our next video is a General Election special, so that might be of interest.
@@Economese thanks for your reply. I have subscribed to the channel and will re visit from time to time. On the subject of migrants, I'm not against helping someone who is genuine and needs help short term. However, the people who are now arriving in their thousands are not people who are destitute in my opinion, the vast majority are young men, who have paid £6,000 to get on a boat. I fear that our own people's quality of life is going to suffer because of this migrant mess, with our NHS already at breaking point, not to mention inadequate housing for our own people. Rant over.
We were told to have a private pension and or savings for our old age to supplement the state pension and keep us out of poverty.... its absolutely evil and wrong to means test state pension,. I don't care what you earn or have saved if you paid in you are entitled..
Hi Debbie, thank you for your comment and for supporting the channel. The state pension is a fundamental entitlement based on years of contributions through National Insurance. People were encouraged to save and plan for their retirement to avoid poverty, and changing the terms now feels like moving the goalposts. Means-testing the state pension would undermine the principle that those who have paid in are entitled to receive it, regardless of their other income or savings. It's essential to maintain the integrity of the system to ensure fairness for all those who have paid in. Our next video out this weekend is about the 9 Laws of Money which you might find interesting. Please keep watching and subscribe ;-)
Would be End of THAT Govt . Forever , State pension is paid from Every Paypacket N. I. Deduction . It's a Right, & WOULD BE HIGHER IF UK Govt . WASN'T STEALING OUR PENSION MONEY for over 30 year to Pay of National Debt.
Hi Douglas, thank you for your comment and for supporting the channel. I understand your comment but the state pension is a benefit and was classed as such in 1992 and it has to be claomed as with any other benefit. Your deduced NI has already been spent. While it's true that state pensions are funded by National Insurance contributions, it's important to understand that NI also funds other critical services like the NHS and various social security benefits. I think the cost of servicing the national debt was £140 billion last year - shocking. Please keep watching and subscribe :-)
@@Economese NI was never Intended to Pay OFF National Debt, If Govt. Had tried Stealing it back @ the Begining of NI they'd have been Lynched. NI was a Voluntary Contribution back when it started..
The Government Strategy is becoming obvious. Get people to save for retirement & then punish them by removing their State pension when they do. It's called bait N Switch. If you want a state pension waste every penny & save nothing. Best Advice ever .
Hi CP, thank you for your comment and for supporting the channel. I completely agree. Means testing the state pension would discourage people from saving for their own retirement, which is counterproductive. It’s essential to maintain incentives for individuals to be financially responsible and plan for their future and by giving them 10-15 years advanc warning of any changes. Pleas ekeep watching and subscribe :-)
Hi Glenn, thank you for your comment and for supporting the channel. Many people feel that they've entered into a contract with the Government through their contributions, expecting fair returns in their retirement. It can indeed feel like a breach of trust when changes impact those expectations. Fair treatment is essential to ensure that everyone receives the benefits they've diligently paid into over their working lives. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
When i retired i was told the amount of pension i received was dependent on the years i contributed the stamp. I had a private pension and the full stamp payment if i hadn't got those years i would have a smaller state pension. HOW IS SOMETHING I PAID FOR A BENEFIT!!
Hi Jeffrey, thank you for your comemnt and for supporting the channel. The State Pension is based on your National Insurance contributions over your working life. It's not a benefit in the traditional sense but a system where your contributions determine your entitlement. Your private pension is separate and doesn't affect your State Pension amount. This contributory benefit needs to be claimed and the eligibility criteria can change - for example will the triple lock increase become means tested? Our NI have already been spent and your state pension will be funded by future generations and they are fewer than in our day. Our next video is about the surveillance state and control which you might find interesting. Please keep watching and subscribe :-)
What needs to be investigated is do any the Mp,s & Top civil servents have any links to the Pension companies that would profit massively from means testing of the state pension. ? Lobbyists offering seats on the board or share options ?
Hi again Stuart, thank you for supporting the channel. I had not thought of that angle. It's important to ensure transparency in Government decisions. Investigating any potential links between MPs, top civil servants, and pension companies is crucial to prevent conflicts of interest. Scrutiny of lobbying activities and board appointments can help maintain public trust and ensure that policies are made in the best interest of all citizens - just like securing PPE?? Please keep watching and subscribe ;-)
@@Economese Just think how many millions to be made out of means testing pensions.for Mps & Top civil servents linked to special interests , Politics is a dirty business. Big Business pays lobbyists to advance their interests. If Pensions are compulsory & pension companies can charge whatever they like then it's pigs in the trough time. Ai companies that track the bank accounts will also profit massively. As an indication of just how much money is to be made out of advanced computer Ai Technology. Track n Trace cost 37 BILLION. K. Ching k Ching K Ching.
The Australian state pension is nothing like the uk state pension, it is means tested but it’s been like that since 1960, indeed it was means tested even before that but it had a significant change in 1960. It’s far more complex and totally different system than we have in the uk and employers are expected to provide what we would call finally salary pensions to their employees in many cases, these are largely gone in the uk. To suggest the means tested portion of the Australian system as an example of a potential change is a gross oversimplification of what the change would actually need to be implemented if they really wanted an Australian style pension system to replace what we currently have. Australia never had a system like that in the UK in the first place.
Hi Thomas, Thank you for the comment and for supporting the channel. You're right. The Australian state pension system is indeed very different from the UK's and has been means-tested for decades. Their approach, which includes employer-provided pensions, is more complex. Using Australia as an example oversimplifies the potential changes needed in the UK, but can be used as inspiration or as a base or foundation. Instead, we should focus on tailored solutions that consider our unique context, demographics, economy, business and other pressures such as longevity. We need to push for informed debate on how best to reform our pension system to ensure security and fairness for all retirees. Please keep watching and subscribe :-)
However those compulsory superannuation payments made by an employer are paid into a superannuation management type account, often run by banks or insurance companies and the end result is dependent on how well these funds do in the market place, not final salary related.
The complex system here in Australia provides emo ployment for bureaucrats and very high fees for fi ancial advisors and accountants. Also the union sponsored superannuation funds provide directorships for defrocked politicians if left wing persuasions. Not surprising since so many politicians have gheir own scheme and are ghemselves party hacks, defrocked lawyers and accountants. 😅😂😮
Hi Jonathan, thank you for your comment and for supporting the channel and for your kind words. We are real people behind a real channel and each video takes about 12 hours from idea to post-prodcution and publishing. Your comments keep us motivated to keep going. Our next video is about the surveillance state and control which you might find interesting. Please keep watching :-)
I was contemplating buying into a SIPP pension but im wondering if my savings are better placed elsewhere. I've never been highly paid, but ive treated investment very seriously for many years and just because I had the foresight to invest throughout my working life, i feel that it would be unfair for me to lose some/all of my state pension. I have 33 out of 35 years paid in by the way. However, just to be on the safe side, I will mind my own business and move things around a little, whilst avoiding the rules about depravation of capital.
Hi Rob, thank you for your comment and for supporting the channel. The uncertainty surrounding the future of the state pension system is unsettling, especially for those of us who have diligently planned and saved for retirement. It sounds like you’ve been very responsible with your investments, and it’s only natural to want to protect what you’ve worked hard to build. A Self-Invested Personal Pension (SIPP) can be a great tool for retirement planning, offering flexibility and control over your investments. However, diversifying your savings and investments can help mitigate the risks associated with potential changes to the state pension system. It's wise to stay informed about the rules regarding deprivation of capital, as you mentioned. Moving assets around to safeguard your financial future while complying with the regulations is a smart approach. Ultimately, the key is to remain proactive and adaptable. Good luck and le tme know how you get on. Our next video out this weekend is titled Want To Retire Early at 62 But Worried? The Tough Road Ahead which you might find interesting. Please keep watching and subscribe :-)
I really cannot see means testing of the State Retirement Pension anytime soon. The cost of administering such a scheme would be ferocious. It is frankly easier simply to increase the age at which people can take it. Changing the Triple Lock so that the middle of the three would be used would make more sense. Currently, with a minimum of 2,5%, the cost can only ever increase for the State.
Simon seems to think AI can investigate & interview the pensioners that get red flagged . Even if only 1 % are red flagged then it would take vast resources of labour from the DWP into the billions . 12 Million plus pensioners. Then of course the Ai that has been developed to moniter bank accounts . Is that free ? Track n Trace cost 37 BILLION. Again another plan thought out on the back of a fag packet. All the costs associated & means tested can easily be mitigated by a millionaire who simply parks his wealth offshore out of UK Jurisdiction.
Hi John, thank you for your comment and for supporting the channel and for your insights. I agree that means testing the State Pension would be costly and complex to administer. Raising the pension age is a simpler alternative and is the preferred option at this stage. Adjusting the Triple Lock to use the middle value of the three indicators (inflation, wage growth, or 2.5%) could help manage costs more effectively while still providing a fair increase for pensioners. Please keep watching and subscribe ;-)
People have factored the state pension into their plans and it would make a big difference to many including me, my private pension will top up the state pension so my wife and I won’t suffer a large drop in income and standard of living when we retire.
Hi John, thank you for the comment and for supporting the channel with sharing your story. You have thought ahead with discipline and sacrifice to provide a better retirement for you and your wife. This channel is dedicated to ensure others make the same informed and positive decisions. It's crucial to recognise that many people, like yourself, rely on the state pension as a key part of their retirement planning. Ensuring its stability and sustainability is essential for maintaining the standard of living for future retirees. Please keep watching and subscribe ;-)
Hi K, thank you for your comment and for supporting the channel. The state pension is a benefit benefit but earned through decades of contributions. For someone who has contributed for 50 years, it’s unfair to classify it as a benefit and subject it to means testing. This could indeed be challenged in court, as it undermines the principle of fairness and the contractual nature of National Insurance contributions. Retirees who have diligently paid into the system deserve to receive what they've been promised, without unjust reductions. Please keep watching and subscribe :-)
I would go along with providing that the government returns all my contributions that I have paid in since I was 15. But we paid in therefore we get the pension no matter what
Hi again Eggy, thank you for the comment and for suporting the channel. I understand your perspective. It's crucial to recognise that many individuals have paid into the pension system from a young age with the expectation of receiving benefits later. The idea of means-testing raises valid concerns about fairness and equity of outcome. If the Government were to consider means-testing, it would be reasonable to ensure that those who have contributed significantly have the option to reclaim their contributions, whihc could be done through our trax codes? Ultimately, any changes to the pension system should uphold the principle that those who have paid in are entitled to receive their due benefits, maintaining trust in the system. Our latest video released over the weekend is about Banking Big Brother and the increased surveillance on our bank accounts whhchyou might find interesting. Please keep watching and subscribe :-)
Thanks, for your 2nd reply to my latest comment. Because I’m on such a low income… i don’t pay any council tax; in which is only fair. i live in a studio flat; so… not all that much to pay out really. My sister pays for the maintenance of the studio flat; so that’s a great help. I’m lucky to have her around whenever i do see her; even though we are not close. She’s very busy working for the NHS, so….. I’ve never been married; and i don’t have any dependents either. i live alone; in which I’m quite happy with. Other than that… i do seem to get by, pretty well, these days, considering that my dad recently passed away. He used to always help me out. A great dad he was. Other than that, I’m looking forward to receiving my pension each month ( it means I’ll have more money to live on, hopefully.) Only then, will i feel reasonably secure financially in my life. Monday pm 22nd July 2024.
Hi peter, I hope you enjoyed the weekend. I am sorry to hear about the loss of your Dad, I lost mine during the pandemic and it is never easy to move on. When do you receive your stste pension? I am always here for a chat and a gossip so feel free to send me as many messages as you need. it might take a little time to reply as I have a full-time job as a co-owner of a financial planning firm. Stay strong and speak soon :-)
Hi Jeffrey, thank you for your comment and for suppporting the channel. While some argue that the state pension should be means-tested to ensure it goes to those most in need, it's important to recognise that the state pension is not officially classified as a benefit in the traditional sense. The Social Security Contributions and Benefits Act 1992, the state pension is indeed categorised under social security benefits. Introducing means testing could complicate the system and potentially penalise those who have saved diligently. This benefit also needs to be claimed and the eligibility criteria can change and have changed over time, including state pension increases if you live in certain countried when abroad. If it was a right or an entitlement, why the difference in rules? Our next video is about Banking Big Brother and increased bank account surveillance which you might find interesting. Please keep watching and subscribe :-)
What I'm most annoyed about is I'm taxed on my company pension and will pay tax until I die. I've been retired for 20 years now and paying over £3000 a year in tax.So us pensioners with company pensions are still paying into the system. .
State Pension is a benefit that is paid for by all who pay National Insurance payments. For this reason, it should not be means tested. Those that do not need it could be encouraged to pay into social funds to benefit those in need. They could be offered a choice of different funds, even locally managed funds. A tax break could be offered as an incentive.
Hi Sue, thank you for your comment and for supporting the channel. There does need to be a different approach to pension reforms and a system to help those genuinely in need and not just gaming the system, should always be considered. Tax breaks for those who are contributing to others is also a good idea too. Please keep watching and subscribe ;-)
There are lots of people who receive full national insurance credits each year, yet have not actually paid national insurance. While those people continue to get those credits it seems like the resulting pension is almost by definition a benefit.
Owned asset of main residence means that I pay a 1/4 of my pension directly back to the consolidation fund to pay for government spending sprees, via council tax which they set at. £3200.
Hi Gway, thank you for your comment and for supporting the channel. I know it is frustrating when a significant portion of your pension goes towards council tax, especially when it feels like it's funding Government spending. However, council tax is used to fund essential local services such as education, waste management, social care, and public safety as well. It will be fascinating to see if there is council tax band valuation review as the current system was based on property values in 1991 - so it is likely that they will increase further - with more potholes! Please keep watching and subscribe :-)
@@Economese I live in a smallish council area and there is very little being done here, BUT those that work for the council are VERY well paid for what they do the CEO £150000pa CFO130000 and various different grades including a diversity and inclusion executive, loads of them and each one has larges salaries an other benefits which come from my tax and 50 other people just to pay that one ‘Brother’ and so on down the scales. They do don t do anything for me but get a salary that reflects a ‘very. Successful,business’ but it isn’t it is a sinking organisation that runs for their major benefit.
It all comes down to where the dividing line wll be drawn. If past experience is any guide the line will be set pretty low, as it is for (example) pension credit.
Hi David, thank you for your comment and for supporting thh channel. You're right; the dividing line for means-tested benefits tends to be set quite low, as seen with pension credit. This could leave many people who just miss the cut-off struggling. If means testing were applied to the state pension, it's likely that the threshold would not be generous, potentially impacting many who have saved modestly for retirement. Please keep watching and subscribe :-) The next video is a General Election special which you might find interesting.
Since the pension ( mini ) crisis during the Truss premiership cost me one third of my pension fund ( age 60 ) I was planning to retire as soon as possible, but at least if they bring in means testing of the state pension, I'll now fall under the threshold. Thanks Liz!
Same thing happened with my husband’s pension. It has since recovered partly but will never get back to where it was because of course at the age of 63 it’s now invested in ‘safe’ areas which are low risk but also low growth. I very much hope anyone living in Liz Truss’s constituency doesn’t vote her back in.
Hi Usercb, thank you for yor comment and for supporting the channel and sharing your story. If the pension was invested in the financial markets, they should have recovered since then as markets are at or close to their all-time highs. That said, I'm sorry to hear about the impact on your pension fund during the Truss premiership. It's a tough situation and I hope you now have the funds to retire fully. I doubt means testing will affect those clsoe to retirement, but more focused on the younger genreration. Please keep watching and subscribve ;-)
Hi Julie, thank you for your comment and for supporting the channel and sharing youyr story. Sometimes lower risk funds are invested in bonds and fixed interest which perform badly when interest rates rise like they have done. I covered this in the auto-enrolment video. Interest rates are currently on hold at 5.25%. I hope you get to enjoy a dignified retirement together. Please keep watching and subscribe ;-)
Hi Kaiser, thank you for the comment and for supporting the channel. Now there is something that we could all get behind and support. This has been echoed in the comments throughout so you might be on to something! Please kepe watching and subscribe ;-)
Pension is NOT a benefit , its a savings plan, paid in over 40 yrs of hard graft, the more you pay in, the more you deserve (avc’s) and paying IN less should entitle you to less . Stop rewarding stupidity and penalising those who think ahead and plan to support their retirement years themselves.
Wrong. Most people pay far less in national insurance than they take out in a pension. My last year of work I paid £2000 in NI, now I receive over £11000 state pension. On average if you live longer than 8 years after state pension age you get back more than you paid. It is not a 'savings plan' your NI contributions are not saved or invested. The state pension is unsustainable.
Technically, the pension was classed as a benefit as of 2014. Furthermore, people who first received a pension back in the 1950s had not paid in, so it was founded out of the working population, exactly the same as today. ( in many ways it is a giant Ponzi scheme) However, the irony that the more you earn, the more tax contributions you make, and most likely the more provisions you make, the less you might get.
The law has treated the State Pension as a Social Security Benefit since 1973 when the Social Security Act 1973 replaced the previous National Insurance Acts. Section 9(1)(h) of the 1973 Act states that the retirement pension is one of the benefits in the system. The National Insurance Act 1965 also considered the retirement pension was a benefit. I haven't got access to the previous National Insurance Acts of 1946 and 1957. The 1946 Act introduced the contributory state pension for all. Before that state pensions had only been available to some people and initially they were means-tested. The original "Old Age Pension" introduced in January 1909 was 5 shillings (£0.25) a week for a single person and 7 shillings and 6 pence (£0.375) for a married couple but only available to a person with an income of less than £21 a year.
Hi Buddie, thank you for your comment and for supporting the channel. I understand your perspective that the state pension feels like a savings plan after years of contributions into the system. However, it is legally classified as a benefit under the Social Security Contributions and Benefits Act 1992 and forms part of the social security system and needs to be claimed like any other benefit. The amount received is based on National Insurance contributions, reflecting your working years. Those who think ahead should not be penalised, but praised and applauded instead. Please keep watching and subscribe ;-)
Any form of means testing that doesn't take account of the value of an owned home is highly discriminatory to people who have the same amount of wealth but choose to rent and invest the capital instead. I'd rather have the flexibility renting and the liquidity of funds invested in a portfolio than have everything tied up on a home. How can retirees ever spend the equity in a home without selling it and moving to rental?
Hi Adm, thank you for the comment and for supporting the channel. You raise a valid point about the potential discrimination in means testing that excludes the value of owned homes. This approach can unfairly disadvantage those who choose to rent and invest their capital elsewhere. One potential solution is to consider equity release schemes, which allow retirees to access the value of their home without selling it, providing financial flexibility. It's important that any means testing system accounts for different forms of wealth to ensure fairness. There should be an approach to pension means testing that recognises various asset forms and promotes equity for all retirees. Please keep watching and subscribe :-)
Good luck with finding somewhere to rent with current policies on immigration. UN Agenda 21 encouraged cultural diversification. Tony Blair supported it. Socialists love it as immigrants overwhelmingly vote left. It also makes it easier to control the populace.
@adm58: I’ve thought about your suggestion and can’t really agree with you. Most people who buy a home are paying a mortgage which is usually pretty much in line with what you will be paying in rent….the difference is your rent will never end therefore adding continually to your outgoings. Your investments may go down as well as up just like the price of houses so unless you’re lucky or a savvy investor I see no advantage or disadvantage there but historically house prices have always risen. It’s interesting that you have chosen that life style, one that certainly wouldn’t suit me ( I’m 69 now anyway) and you say you prefer the flexibility but the downside from my point of view is your landlord can give you two months notice at any time and you have to move on. That’s not for me and I do know the government is trying to stop that ( no fault eviction) but let’s be fair the owner of a property has to retain the right to repossess his house eventually and so you will always be in a position of having to move on sooner or later which again wouldn’t suit a lot of people I’m sure. I’d lay odds you’re probably single and have no children. Your view may change when your life changes. Anyway good luck, if it works for you it’s the right thing to do.
@@Kingcarparpeggio it does all depend on circumstances, both personal and things like interest rates, tenancy terms etc. I'm 65. If I could get a 20 year very low interest rate mortgage (like the ones available until recently, before the rate rises), I would buy. I can't get a mortgage though as I'm too old. So, I'd have to buy cash. Something I could do but then there is the problem of being unable to ever spend the funds tied up in the house (owning means dying rich). I'm also fortunate in that I have a secure tenancy with a good landlord. I'd be concerned about an insecure tenancy, especially in old age. There are many factors that influence choices; financial, legal and personal. I definitely think that if we had more secure tenancies available in the UK, downsizing to a well managed rental home and releasing capital to spend down would suit many retirees. It's a mystery to me why a market for this hasn't arisen (corporate landlords could do this well).
@@Kingcarparpeggio in fact, if I could, I'd now buy a good mobile home and live in that. Unfortunately, in the UK the law makes even that very difficult. Apart from living, or even sleeping, in a van other than on a designated site being illegal, having no fixed address is legally very inconvenient, to the point of being practically impossible.
Hi Jonathan, thank you for your commetn and for supporting the channel. Means testing is unfair to those who have been diligent savers throughout their lives. It does feel like a punishment for making responsible financial choices while others who didn't save are rewarded. The goal of means testing is often to ensure that limited resources are directed to those who need them most, but it’s clear that such policies need to be carefully designed to avoid discouraging saving and punishing those who have planned for their future. There have been even more articles in the press and social media last week including The Times. Please keep watching and subscribe :-)
Really good content. Thank you. I’m one of those people who thankfully are still living in serious ill health . I received my nursing pension early. I’m unable to work due to serious health issues. What I don’t understand is .. what happens if I don’t get my state pension. Should I be saving into a private pension and is that even allowed as I have a nursing pension. Thanks in advance .
Hi Jayne, thank you for your comment and for supporting the channel and for sharing your story. I'm sorry to hear about your health issues. The state pension is meant to support everyone, especially those who can't work due to illness. You should still be eligible for your state pension based on your National Insurance contributions and it is unlikely to affect those close to retirement and those already retired. If you are in rceipt of state benefits you can also qualify for a qualifying year of NI towards your state pension entitlement. They would also need to communicate any changes with a LONG lead time of perhaps 10-15 years so we can all plan ahead. As for saving into a private pension, it is allowed even if you have a nursing pension. As a general rule you can contribute £2,880 per year and still get £720 tax relief added = total contribution of £3,600 per year if you can afford to do so. It could be a good way to supplement your income in retirement. Take care and I wish you all the best with your health. Please keep watching and subscribe :-)
It would cost a fortune to means test the state pension. Every case would need to be looked at individually because everyone's circumstances are different. So lots more staff needed to run such a system. That is the advantage of a universal system, cheaper to run and maintain.
Hi, thank you for the comment and for supporting the channel. I disagree as there is legislation going through Parliament as we speak allowing banks and financial institutions more control and access to our bank accounts to assess levels of saving and income. With AI and technology in place, this could be done seamlessly in the future. A scary future and almost dystopian. Please keep watching and subscribe :-)
Absolutely correct. Means testing 12 millions plus pensioners every year will cost hundreds of millions if not billions. One of the main reasons only Australia do it . The argument AI will do everything & cost nothing is farcical. To illustrate just how expensive Computer programs are you only need to look at Track n Trace corona Virus .A cheap as chips 37 billion yes BILLION. Any computer programs would need to be updated constantly & costs of millions . Would a millionaire not just put his millions into a offshore bank with no UK Jurisdiction ?
@@Economese Track N Trace 37 Billion . Do you think advanced programs that track bank accounts are free ? Is the Ai going to Interview the pensioners the computer program deems needing investigation ? It will cost billions & you can be dam sure that the politicians involved in passing means testing will have their sticky fingers in the Pension companies jar or the Ai Designers jar . Why wouldn't a millionaire just put his money in an offshore bank out of UK Jurisdiction or investing in Crypto ?
The administrative costs of operating means-tested benefits is a significant fraction of the cost of providing the benefit. I recall seeing claims years ago that the cost was as much as 50% of the amount of benefit paid.
Hi Gareth, thank you for your comment aqnd for supporting the channel. Retiring early with private pensions, savings, and investments is a smart strategy. By the time you reach pension age with minimal assets, you can claim the full state pension. This approach maximises your financial benefits while ensuring a secure retirement. I think the reality will be different though as they will need to communicate this change 10-15 years in advance so people can prepare ahead with confidence. Please keep watching and subscribve ;-)
Since when does a benefit give someone the right to pay for years that are missing from their contributions to gain a full pension. I was a single parent for many years. I went back to work. I owned my own house. I had no handouts from the state and I paid full contributions for the whole of my working life. I did not go out on the town enjoying myself and I did not go on any holidays. So do the people claiming other state benefits at this time get asked to pay for missing years of payments before they can receive the full benefit amount and do all the immigrants get benefits and pensions paid to them? We have many UK people living abroad still being paid a state pension. These pensioners had the yearly increase if they lived in the EU but the UK did not benefit from these pensions being spent in the UK. If pensioners did not move to an EU country then they did not get any increases after they moved to their new country. Have the increases stopped now we have left the EU or is that another blunder by the Government? This needs far more thought than the knee jerk reactions that is being used by a Government that has been totally useless at budgeting. Current and past governments have been disgraceful at using money wisely which means that they have squandered the taxes that we have paid them so now they want us to pay again. I met my husband and got married in 2007. We both had a property and we had both worked like mad to achieve this. We hit the recession and lost all our interest on our savings (money given to all those who lived it up and got into debt) so we bought a buy to let. We worked hard to do it up and have treated all our tenants in the way that we would wish to be treated. The government have now started to tax us to the hilt even though we have paid for all that we own with already taxed money. We did not sit and moan but set about getting round a problem. We are not rich by any means but now we feel as if the Government will not be happy until we are in poverty and claiming government assistance. We need a Government that has common sense both with money and with working out what is the best direction. It has to be remembered that Keir Starmer and Rishi Sunak are both extremely wealthy people who certainly do not know anything about poverty or the working class other than if they get too big for their boots take away their state pension and put them on real benefits.
Hi Lynne, thank you for the comment and summary of the current situation as well as supporting the channel. I can hear and understand your frustration. It's disheartening to see those who’ve worked hard and saved being penalised, while others can fill gaps in their contributions through benefits. Immigrants and benefit recipients should be held to the same high standards. The inconsistency in pension increases for UK pensioners abroad, especially post-Brexit, needs addressing. But that might be a long wait unfortunately. Overall management by successive governments has led to unfair taxation on those who saved responsibly. We need leaders who truly understand and support the broader society and wise use of taxpayer money - I won't hold my breath just yet. Please keep watching and subscribe ;-)
I had some bathrooms refitted by a plumber. Noticed he kept telling me about all the Porsche cars he had owned. All bought new from the dealer I might add. At some point in his weeks working here, it then became clear he didn’t have a pension. When asked what he would do, he was quite clear about it. As he got older he said the government would have to look after him. House him, put him in a care home when needed and he fully believed he would become a problem of the state. I was staggered. This shows that the system is geared to specifically look after people like him at the expense of everyone else, whilst during his life he was swanning around in brand new exotic cars, with the intention of becoming a burden to tax paying society, most of which are NOT driving around in brand new Porsches.
Hi Gee, thank you for you comment and for supporitng the channel. It's amazing how some people can prioritise luxury over planning for the future. While it's true the system needs a balance to avoid enabling such behaviour, let's hope more people opt for a sensible approach to both their finances and their retirement planning. Meanwhile, maybe we should start a new trend: Pensions before Porsches! Our next video is about the 10 Rules of Money this weekend which you might find interesting. Please keep watching and subscribe :-)
He knows the Government punish the Sensible & prudent so he is not having a pension as in all likelihood it will be stolen at retirement. The Government create this situation so you can't blame people for playing the Governments rules .
@@GeeBeeMike I was a plumber unless you paid him cash in hand he paid a higher tax rate and judging his openess he wouldn't have got away with tax avoidance
Hi User, thank you again for supporting the channel. Our tax situation is the highest since 1948 so I wonder where it will end up from April 2025? That would be more aligned to communism. Communist states often implemented policies where the Government seized private property and assets. Individuals were then given what the state considered necessary for their subsistence or based on their perceived contribution to society. ur next video out this weekend is "Drawdown for Dummies: How Can I Get Money Out" which you might find interesting. Please keep watching and subscribe :-)
If its implemented, would just be another government cash grab on those those work hard and sacrifice throughout their lives. So likely to happen as that's the direction of travel.
Hi Phil, Thank you for the comment and for supporting the channel. It could be another way of "redistributing" wealth across society. The financial shortfall is a growing burden each year with more people retiring, living longer and fewer working people paying NI. Make sure you have enough private provision and be prepared. Please keep watching and subscribe :-)
@@Economesesorry but this does not make sense. When you have a public sector pension like me that has had the retirement date moved back effectively stealing thousands from me. Then the NI that I have contributed to everyone else’s pensions isn’t taken in to account. This would be a betrayal of the contract between government and the people. That betrayal is effectively treason.
I find it amazing that only 275,000 new claimants or new retirees are claiming their state pension per year. Considering that this year is the 1957 cohort when there were around 682,000 live births, it leaves we wondering where the other 400,000 have gone. I'd expect it to be less through early deaths, emigration and late retirees but not by 2/3.
Hi Nod, thank you for the comment and for supporting the channel. I appreciate the comment so we can all learn together and I was unaware of this cohort. The discrepancy you noted between the number of new state pension claimants and the birth cohort can be attributed to several factors. Many people retire later, emigrate, or pass away before reaching pension age. Additionally, some may not claim their pension immediately due to continued employment or other income sources. In 2023, there were approximately 12.7 million people receiving the state pension, with the number of new claimants annually being lower due to these factors. This reflects a complex interplay of demographics and individual choices impacting pension statistics. I have taken an average of retirement statistics and erred on the cautious side of retiree increases. Please keep watching and subscribe :-)
I am totally opposed to StatePension means testing. We worked most of our lives for low wages and never had the opportunity to save much. When our kids left home we scrimped and saved to purchase our ex council property because we feared not being able to afford to pay rent. When we did retire we had our mortgage cleared. We realised that we would need to keep saving incase we needed new windows new roof or any other repairs. If they means test us will they take into consideration what our savings are for or will the punish us for being responsible by removing money from our State Pension which at the moment is £883.67 a month for me and £825.42 for my husband, our outgoings are £1484.00. We don’t go on holiday we don’t smoke or drink alcohol. We spend extra money on our garden and our children and great grandkids.Why can’t we just be left in peace to enjoy the little we have without the fear of being plunged into poverty yet again. I feel like we can’t move forward without the threat of being dragged backwards. After paying into the system for over 50 years I expect better than this. PS We are still paying full Council Tax😢
Hi Say, thank you for your comment and for supporting the channel. If you've paid National Insurance (NI) contributions throughout your working life, means testing the state pension may feel like theft. These contributions are intended to secure your pension, not be subject to further eligibility criteria. Ensuring fairness and honouring these contributions is crucial to maintaining trust in the system. The Government should recognizs and reward those who have consistently contributed, rather than penalising them with means testing. Instead, you can make them retire later and later and later.......... Please keep watching and subscribe :-)
Hi Stevem thank you for your comment and for supporting the channel. While higher taxes might seem like a straightforward solution, they can also place a significant burden on taxpayers and businesses. It's crucial to find a balance without stifling economic growth or penalising hard work. Dropping interest rates would be a positive start to give people more money in their pocket. Our taxation is the highest for 70 years so I am not sure how much extra we can give. Debt to GDP is 100% and the repayment costs are £140 billion per year. Our next video for this coming weekend is about Retirement Money: To spend or not to spend which you might find interesting. Please keep watching and subscribe :-)
Hi Strat, thank you for your comment and for supporting the channel. It's a valid concern. While changes like means testing could potentially impact future pensions, applying such changes retroactively to pensions already in payment would likely face significant legal and ethical challenges. We would need to see 10-15 years advance warning to prepare ahead and then there could be transitional protections to protect the most financially vulnerable. Please keep watching and subscribe :-) The next video is a General Election special which you might find interesting.
Looks like how unemployment benefits work in the UK not had a bean over the last 11 years. It would put us into poverty I believe and be of benefit to those who haven't worked all their lives.
Hi Anthony, Thank you for the comment and for supporting the channel. I understand your concern. Means testing the state pension should be designed carefully to ensure it does not unfairly impact those who have worked hard all their lives. The goal is to create a fair and sustainable system that supports those in need without pushing others into poverty. It's essential to advocate for policies that protect and reward lifelong workers paying NI while ensuring a safety net for everyone. Please keep watching and subscribe :-)
Hi Carla, it is amongst the lowest in Europe for sure especially when compared to the average cost of living in this country when compared to others. By that I mean £11,502 per year goes a lot further elsewhere in Europe and it is not enough to meet the minimum lifestyle and expenditure in the UK - currently this is £14,400 per year for a single person. Our next video out this weekend is an Inflation Report: Too Little Too Late which you might find interesting. Please keep watching and subscribe :-)
Means testing should not be the way to go, but pensions will become unaffordable at some point. Perhaps the best way to go is to freeze the state pension at some point with plenty of notice. The auto enrolment needs decades to build up the funds to retire, so at some point pensions could be frozen and drop overtime in spending power. Anyone not having enough to live on when this happens could get benefits, which are obviously means tested. This way there is a transition period over many many years until the spending power of the pension has deteriorated due to inflation.
@@stuartregan1627 maybe, but a solution needs to be found or the taxes the younger working people will have to increase to pay for the pensions. If pension costs double it will be the young workers that already cannot get close to buying a house that will be paying for the pensions. Pensions will become unaffordable at some point, I simply suggested a transition state rather than simply making pensions suddenly becoming means tested as older people have already planned their retirement.
@@JamesKerr-z4o Yeah I agree . But encouraging people to work & save less will make GDP worse not better . Under the Madness of means testing , people who work hard & save get a reduced pension, if they work really really hard they get no state pension at all. Is the implementation of means testing not economic insanity ?
@@stuartregan7219if I know I’m getting means tested if I reach a certain threshold then my motivation to reach the certain threshold is gone. Taxation seems the only fairer option to wealthy pensioners getting state pensions.
Hi UserX, thank you for the comment and for supporting the channel. Freezing the state pension with advance notice is a pragmatic approach. It allows auto-enrolment to build retirement funds over time. As the pension’s spending power gradually reduces, means-tested benefits can support those in need, ensuring a smooth transition and encouraging long-term saving. For example, when you get to 35 years NI, you don't pay any more NI for the state pension - so you pay less NI allowing to reinvest this additional money elsewhere. Please keep watching and subscribe :-)
I am 53 I’ve worked since I was 16 full time never been out of work - However, the way my life went getting divorced twice et cetera I’ve got a mortgage until I’m 70 and I’m not planning to retire until I’m 73 as long as I’m healthy enough. I’m hoping at that point I would’ve built up enough wealth to be able to retire enjoy rest of left of my life. I’ll be rather upset if my state pension is means tested, but nothing would surprise me in the UK at the moment 😢
Hi Ian, thank you for yor comment and for supporting the channel and for sharing yor story. Your situation is understandable, and it's clear you've worked hard to build your future. Many share your concerns about potential changes to the state pension. Let's hope that any changes will take into account the efforts of those like you who have diligently planned and sacrificed for their retirement and can be healthy enough to enjoy a dignified retirement. Keep in contact and let me know how you get on. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
The state pension was always considered an entitlement up until 2016 when it was first referred to as a benefit in legislation, so all entitlement built up prior to that date would have to be paid non means tested irrespective of any future legislation. The government has not said anything about any plans for means testing of the state pension, so this is pure speculation. If they wanted to bring this in it could only be applied to future accruals and they would have to give at least 10 years notice as people have already made retirement plans based on current legislation. It would also be political suicide for any party to even suggest such a thing, so i dont think it will happen in the forseeable future. The cost of funding the UK state pension is actually quite small in comparison to many other countries.
Hi Darren, thank you for your comemnt and for supporting the channel. The state pension was defiend as a benefit under the Social Security Contributions and Benefits Act 1992. It's true that the state pension changed in 2016 but the Old State Pension benefits were carried forward to no-one was worse off as a result of the changes. Whilst a means tested pension is not curent policy, the senior Labour consultant who has recently floated the idea of means-testing the state pension is Sir Edward Troup. He is a former senior executive at HM Revenue and Customs (HMRC), has been advising the Labour Party, particularly Chancellor Rachel Reeves, so how much longer before this could be addressed? I agree that 10-15 years advance warning would need to be provided so we can plan ahead. Measn testing would likely apply at the point of retirement when assessing income from all sources and assets and may not afect future accrual - unless we got the option to opt out of the state pension and could invest the savings elesewhere? You're correct that the cost of the UK state pension is approximately £125 billion per year, which accounts for about 4.7% of the UK's GDP. This is low when compared to Spain, France, Germany and Italy. But with falling birth rates, the system is failing in slow motion. Our next video released this coming weekend is about the Bank of England decision to lower interest rates "Too Little Too Late" Please keep watching and subscribe ;-)
They've got access to pensioners bank accounts and are reducing NI with the aim of getting rid of it completely so they can start to means test the state pension. They already refer to it as a benefit.
Hi Chrysalis, Thank you for the comment and for supporting the channel. While changes can be concerning, the aim should be a fair and sustainable pension system. There is legislation currently going through Parliament allowing more scrutiny on out bank accounts for assessing benefits and yes, the state pension is legally a benefit and part of the social security system. Please keep watching and subscribe ;-)
A part of the CBDC is blockchain technology. EVERYTHING anyone owns will need to be tokenised (placed onto the blockchain) in order to prove that you own it. If it isn't tokenised you cannot sell it. This is the "you will own nothing..." part of this dastardly plan.
Hi Puja, thank you for yor comment and for supporting the channel. Make sure you have a diversified global portfolio across countries, companies and sectors, low cost and liquid as well as having gold and silver as alternatives. Please keep watching and subscribe ;-)
Hi Ab, politics and economics are intertwined for sure. Whatever the political colour, changes will be needed. Make sure you have a retirement plan and importantly a "Plan B" just in case. Please keep watching and subscribe :-)
Hi Sandra, thank you for your comment and for supporting the channel. Any changes to the state pension are unlikely to affect those of us who have worked all our life. My fear is that the younger generations may not have the same financial support in retirement. As there are fewer workers and we are living longer, maybe the Government will make changes so the state pension is more sustainable? Please keep watching and subscribe ;-)
Hi IB, thank you for your comemnt and for supporting the channel. Political leaders often face significant challenges in balancing transparency with the practicalities of election campaigning - and as a result telling the truth. If Keir Starmer or any other leader were to propose substantial changes to the state pension system, it would indeed be crucial for them to communicate these plans clearly to ensure we could plan ahead so i would expect 10-15 years notice. Let's see if the Pensions Minister Emma Reynolds can solve the problem. Our latest video released over the weekend is about Banking Big Brother and the increased surveillance on our bank accounts which you might find interesting. Please keep watching and subscribe :-)
Why would the Australian be used as a template, their system doesnt even look remotely similar to ours. They changed the basis of theirs in the 70's if i recall. It sounds very much like scaremongering on your part, so its a bit disingenuous to suggest only a part of how the Australian system works, and how this "may" be applied to the UK system.
He's not scaremongering. Every other week there's a story in the media about the affordability of the state pension Do you think it's a coincidence that means testing story's appear regularly. It's not , it's called kite flying. Work too much & no state pension, live on benefits or save nothing then full pension. Gen Z know it ain't worth working & gaining wealth . Auto enrollment is a trojan horse to steal your pension.
Hi Grey, Thank you for the comment and supporting the channel. Australia’s pension system indeed differs from the UK’s, but it offers valuable insights. The UK financial services sector draws inspiration from Australia's successful superannuation scheme used as part of our current auto-enrolment pension clearly amended for our demographics, law, businesses and economy. Means testing can be part of a broader strategy to ensure fairness and sustainability and reducing Government borrowing to support the deficit. By learning from Australia, we can innovate and improve our own system to benefit all retirees, but it will be a brave decision. I think it might be disingenuous to believe that the current system can continue indefinitely without change? Please keep watching and subscribe :-)
Hi Stuart, politicians may only whisper it for sake of saying the awkward part out loud - it is getting too expensive to provide with more retirees, living longer, inflation + rises and fewer workers to pay NI. It's understandable to feel concerned, but auto-enrolment is designed to secure our future. While means testing stories can be worrying, they're part of exploring sustainable solutions. Focusing on saving and investing through auto-enrolment ensures a more comfortable retirement. Let's try to work towards a system that rewards hard work and savings for everyone. Please keep watching and subscribe :-)
The government wants to means test its native citizens when they become of pension age, but has no problem with spending billions on people who have just turned up here and never contributed a penny.
Absolute hypocrites the lot of them, vote reform UK!!
Wonder if all these politicians will be subject to this as well like the rest of us mere mortals? Not that they need a state pension when they are on 85k a year for ruining everything for the rest of us!! No doubt they will make sure they are all financially OK and look after their own whilst penalising the rest of us!! Rotten dishonest hypocrites the lot of them. Maybe they wouldn't need to think about clawing some of this money back if they were not chucking millions at those illegal scumbag immigrants who do not even belong here but expect to be looked after and supported without paying into the system! So wrong on every level.
Rock up on a dinghy, plenty of money.
You couldn’t make it up 👏
Exactly. Same here in Australia. Tired of rocking up to my chemist and paying full price for my prescriptions whilst a migrant gets it for free
The real question here is what is right and fair, work hard and generate wealth, pay your taxes and you get penalised to pay for people who have done precisely the opposite really doesn’t sit well.
"We work so you dont have to" Thats the UK all over
Hi Vander, thank you for your comment and for supporting the channel. Balancing fairness in tax and in pension systems is crucial. It's important that hard work and wealth generation are rewarded, but it's also vital to support those who may have faced different challenges. A fair system should ensure that contributions through taxes are used effectively to benefit society as a whole, without unduly penalizing those who have worked hard and saved. Sounds easy in theory but much harder in practice. You'r right that it won't sit well with most. Please keeop watching and subscribe ;-)
@@Economese different challenges - you mean, paying for more foreign holidays :)
If you think that only the wealthy work hard, you want to try nursing!
welcome to socialism, it's always been socialism
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@FlorentGulliver That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@ElijahReuben- My advisor is VICTORIA CARMEN SANTAELLA;
You can look her up online
Nah I Can't say I can relate, VICTORIA CARMEN SANTAELLA charge is one-off and pretty reasonable when compared to what I benefit in returns.
It’s not fair to penalise those people who worked hard and saved hard all their working lives in order to have a comfortable standard of living in retirement.
To Labour fair isn't fair
If you don't smoke drink or gamble the government considers you a tax avoider.
If you work hard & invest that money and set yourself up in old age now the government wants to take that away.
So who should we penalise? The youth? Problem is.... state pension is a ponzi scheme where they pay early investors with money taken from new investors.
But ponzi schemes blow up when they run out of new people coming in. And people are just not reproducing like they once did. If you or i ran a scheme like this, we would go to prison. But for the government.... it's fine. One thing is for sure.... at some point this ship is gonna sink and there will be no money for anyone.
They did that in Australia. So only those who absolutely need it get it. Of course those who wasted their money are also recipients. Most of my friends and colleagues are still working because of this. The UK should do means testing as a way of eliminating the burden and free up funds for more deserving causes.
Unfortunately the way the Welfare State works is that those who work hard are expected to pay for both themselves and others. In Australia half of the population make no net taxation contributions to run the country.
I’m all for equality. If you pay in, then you should receive out. Paying in and getting nothing in return should be challenged in court if it happens. None of us had any choice in paying NI and so the government should have no choice but to pay out. I would definitely fall into the category of getting nothing from the government if it was means tested, but have probably paid in 3-4 times the average fully paid up person over my working life.
The legal term is taking money fraudulently. Paid for 35 years & told it entitled you to a pension but then when you claim it .. Sorry. Sounds a bit like a Indian call centre.
Not so long ago the government run a scheme to help with the cost of changing your old gas boil. To a more up-to-date one.. the guy said I'm a pensioner do I qualify for this scheme the answer was No reason given state pension is not classified by the government as a benefit but an entitlement.. needless to say No help was given as to the cost of the up-to-date boiler.. .
@@stuartregan1627 by the time I retire I'd have paid 51 years.
@@fredsmith3859 If you ask you will be told it is a benefit, not something i agree with though
None of us had any choice in paying any form of tax, for nothing in return unless you fail to look after your health & overuse the NHS, and unless you fail in your education & training and end up on benefits. NI is just another form of tax, with as theoretical link to pensions as vehicle tax has to maintaining the roads.
I started work in 1971 and payed NI every year until I reached retirement age at 66. I’ve paid for my state pension, it’s not some means-tested benefit
46 years of contributions.. retired 66.. brought up 2 kids, single mother.. saved money and paid into a pension.. if this happens, there will be a lot of people demonstrating..
Hi Frederick, thank you again for the comment. Any future changes are highly unlikely to affect you as you are now retired. There is no pot of money allocated to anyone based on their contributions as NI is just another tax the Government uses to fund their spending plans. Please keep watching and subscribe ;-)
Hi Veronica, thank you for your comment and for supporting the channel as well as sharing your story. Your commitment is clear: 46 years of NI contributions, raising two kids as a single mother, and saving diligently for a decent standard of living in retirement. If the Government changes the pension system to penalise those who have worked hard and saved, it will surely spark widespread demonstrations across society due to the unfairness. Many like you will feel compelled to defend their well-deserved pensions and I will be there with you. Please keep watching and subscribe :-)
It's what ever the government makes it unfortunately.
ABSOLUTELY 💯 CORRECT 👍
Thatcher had us paying into private pensions only for Gordon Brown to come along and tax it.
Government needs to keep its sticky little fingers out of our pockets and then stop forking over tax payers money to foreign interests.
Thatcher also allowed big business to take a "contribution holiday" on employers contributions to final salary pension schemes when the stock market was riding high. . Forget the adage that you must pay in the good times to cover the bad.
When the UK stock market collapsed in the 90's and 2000's, final salary schemes racked up huge deficits due to the contribution holidays. This resulted in the collapse of final salary schemes and the pension crisis we now see unfolding in this video
@@andrewhutchinson36 wasn't aware of this - thanks.
Is Starmer about to hit pensions just like Brown did, I bet he will.
@@andrewhutchinson36Employers were forced to take a pensions contribution holiday because the pension laws did not allow for overfunding of future pension liabilities beyond a certain amount. So, when markets were climbing and returns were good, companies could not make more contributions tax free. The Government feared that firms would reduce their Corporation Tax bills by channelling corporate profits into the works pension fund needlessly. The real harm came from the raid on the pension funds initiated by Chancellor Gordon Brown. Then a tightening up of the pension administration rules after Maxwell et al meant that pension trustees became hugely risk-averse and ended up forced to invest in 'safe', but low-performing, bonds, rather than in riskier, but potentially better investments, such as equities. The final straw for many defined benefit schemes was a prolonged period of very low interest rates, meaning that returns were low and pension funds struggled to be funded well enough to pay out the promised pensions.
,
Brown did worse than that, apart from his one-off tax grabs, he removed the tax relief pension funds received on investments. Nowadays the funds, who were the biggest investors in British companies, hardly invest here at all. When the long-term cost of all his screw-ups is calculated Brown will go down as one of the most incompetent chancellors in history. I hope Rachel Reeves has learnt the lesson of the Brown years
Yeah signed up at 16 yo in 1978, never been out of work, so that's 46 years of contribution, so if I'm not getting a pension I'll have my money back please
Bloody right !
You only need 35 years in your NI record for the maximum amount of pension and the amount of the pension no longer has any connection to the level of contributions paid (since the earnings-related additional pension was abolished for those reaching pension age after 5 April 2016).
@@philbrett9227 it was a rhetorical statement, of course there's no pot of money, there has never been successive governments rob Peter to pay Paul, the point is that having no choice in the matter, but being forced to pay into a scheme, that is nothing more than a Ponzi scam, and then being expected to take out additional pensions to provide a decent retirement, doesn't work either, you will be taxed, that's means testing in itself
Hi Chopper, thank you for your comment and for supporting the channel. Your view is echoed by many in the comments but your NI has already been spent on Government spending plans and for retirees. It is highly unlikely any changes will affect you but the concern is for the younger generations. Please keep watching and subscribe :-)
Don’t forget with interest
That's like putting money in your Bank then when you go to get your money out then find out that the bank has spent it
Another youtuber covered this a while ago...that when you put your money into the bank it is no longer your money. Neil McCoy Ward I think it was, who discussed it. You have to hand it to them, they're very clever - they've got it all sewn up nicely in their favour. I remember when I used to get my wages in cash in a brown envelope every week. Then a cheque - which most people would pay into the bank. It transitioned over time, to the majority of people having their wage put straight into their bank account. So effectively, the employer just gives the money straight to the bank. Not that it's really the employer's money anyway, if it's already sitting in THEIR bank! It's just banks sending numbers ("money") to other banks and the account holders don't really matter at all. Incredible stuff really, huge con.
Hi Andy, thank you for your comment and for supporting the channel. You rmoney is in digital format in the bank as they will loan your money out for mortgages etc, charge interest on the loan and pay you an interest on your money in the account. The difference and the profit is called their net interest margin, so the bank will "spend/invest" your money. Our NI deductions have already been spent on Government spending plans. Please keep watching and subscribe :-)
untrue, public money is no longer yours
@@Economese "already spent" literally a ponzi
Inflation of our currency is our biggest tax
When I was paying in for 35 years it was not called a benefit it said to be for our retirement. Only recently have slimey politicians started to call our pension a benefit. If we are not to get a pension we were mislead and deserve our NI payments back!.
Hi Neil, thank you for your comment and for supporting the channel. It was legally defined a benefit under the Social Security Contributions and Benefits Act 1992. Some benefits are already means tested in the UK which I alluded to in the video. Time will tell how the state pension will evolve. For now, the preference is to keep increasing the state pension age for those can can still keep working to that age of course! Please keep watching and subscribe ;-)
@@Economese if it's a benefit. It should not be taxed
If it's a benefit why do we have to pay for dentists and why do we pay full rate and water rates can't use a food bank don't receive cost a living payment so no it's not a benefit I wished it was then we could have heating allowance, if you and your husband or partner both received full state pension even if you don't have a private pension or savings you can't receive pension credit.
@@gabriellerochelle4367 It may have the title BENEFIT, but we have paid contributions to it for 35 years so we are fully entitled to it or our contributions plus 35 years of interest back. The Government could not afford to pay all that back.
@@Economese , If it was not legally defined as a benefit until 1992, That means it was not a benefit for my first thirty years of work and they owe me big time. Previous to that we were always told we were paying in for our future pension
I paid National Insurance contributions for 40yrs on the basis that my contributions were going towards paying my state pension. It is not a benefit it is a pension. This is what I was told at aged 18yrs; during my time working at Department of Health and Social Security awarding widows' pensions in my 20s; and when I retired at age 60yrs. At no time was it referred to as a benefit. 'Benefits' were supplementary payments for lower income groups and for those with disabilities etc. The problem lies in the fact that successive Governments over the years have robbed our pension pots to pay for other things and now there is no money left to pay our pensions. That is their problem and not ours. Funny how the UK Government can always find money to fund wars, usually against the will of the majority of UK residents!
Hi Viv, thank you for your comment and for supporting the channel and for sharing your story. NI is just another tax and it has already been spent by the Government. The state pension is a pay-as-you-go system which depends on future generations paying our state pension - as we have done for previous generations. There is no pot with yor name on it. I understand your frustration. The state pension has indeed been viewed as a right earned through NI contributions, but the legal definition change in 1992 created confusion. It's crucial that the government ensures transparency and safeguards the pension system to honor the contributions of hardworking individuals like yourself. Pleae keep watching and subscribe :-)
Absolutely
@@Economesewhat are we going to do about defend our pensions or are we just moan it.
The state pension is nothing more than a Ponzi scheme and when it collapses there will be no more state pensions paid out.
The state pension is already means tested (sort of) I.e if you have additional income on top of the state pension it is taxed.
Hi User, thank you for the comment and for supporting the channel. You're right (sort of) that while the state pension isn't currently means-tested, any additional income is subject to income tax, effectively reducing the net benefit for those with higher incomes. My point was that a measn tested state pension benefit means you would qualify for a lower state pension from the outset based on an assessment of income and assets. Please keep watching and subscribe :-)
@@thedrummerboy1215Yep . You pays your money you get the return. Unlike social scrounges .
I fall into that category, I still work (72 years of age) and am taxed
@@JohnBaroque Me too
VOTE THE BUGGERS OUT .
Hi Susan, thank you for the comment - I think the UK population may be listening to you and paying attention already. Please keep watching and subscribe ;-)
Which buggers though?!
Which ones? Note, the government (not party). This is being organised by the civil service believe me. The government will be able to continue to badly manage the country and not give a hoot about the 'claimants'. I never had a holiday until I was 48 because I saved for my future. What a fool I was!😮
Reform want an Australian pension system, look at their policies. They are the only party pushing for it and yet people will probably still vote for them.
Too late.
Total Rip Off if they do that
Hi Allan, thank you for your comment and for supporting the channel. They can either measn test the pension or keep extending the state retirement age - either way will be unpopular and stoke resentment. Please keep watching and subscribe :-)
Means testing NO! NO! NO! we are NOT in the middle of a world war, we are the 6th (so they say) richest country in the world, so there is NO NEED for a means test. If there is a shortage of money You can deduct it from politicians wages, or am i being too cruel to the politicians👹👹.Old proverb: God helps them that helps themselves, BUT god help them that get caught helping themselves.
Reform are the only party pushing for an Australian pension system.
@@williamgardner2739reform are the only party pushing for an Australian pension system.
"IF" Means testing for pensions is not going to happen.
Over my working life I’ve paid many hundreds of thousands of pounds in tax and NI and have never made a claim on the system. I have also saved into pension schemes to supplement my state pension when it becomes available. State taxation has been the biggest draw on my income and I have never made any claims on the system or made serious use of the health service. I would be furious if the state pension became means tested as I would end up losing a large part of my income in old age. State pension needs to be recognised as an entitlement not a benefit. State pensions are affordable they need to be prioritised over Government squandering which is just transferring tax payers money into private hands.
Well said I totally agree, as an older person in my 70’s who has always work paid my taxes and national insurance and saved for my retirement I too would be furious if this was implemented. I already have a form of means testing on my state pension because of the way it is treated by the tax system which means I loose part of my personal allowance and there pay more tax on my private pensions and my small Salary from my part time employment.
@@patmartin9727 I recall my father having the same. I guess it will happen to me as well when state pension age comes around. That’s already means testing. What more do they want? I’ll be damned if they start looking at my savings that I’ve already paid tax on.
Hi David, thank you for the comment and for supporting the channel. There is legislation going through Parliament at the moment allowing for greater scrutiny of bank accounts for assessing benefits and it is likely to be with us sooner than we think. All in the name of safety and security and fairness of course. Keep watching the channel for developments and subscribe :-)
Hi Pat, thank you for the comment and for supporting the channel. I hope you are enjoying your retirement. It would be highly unlikely to affect those who have already retired, but it could affect younger people. There is such negativity that the IFS stated that 33% of people don't think there will be a state pension AT ALL in 30 years - let alone means tested! Stay healthy and have an amazing retirement. Please keep watching and subscribe :-)
After paying taxes for 40 plus years the very minimum should be a livable pension. Not a pension that is only payed to the workshy & feckless. Telling people if they work too much they get no pension is probably the dumbest thing you can do in a capitalist country.
Absolutely everything belongs to the government. Your money. Your old dvds you put on eBay. Your bodily autonomy. Your thoughts and how you express them. They are coming for it all and it's happening fast.
Yep. "You will own nothing and be happy". And you might get to eat some bugs along the way too, if you are lucky. Concerning, how quickly it's all coming to fruition.
Hi D, thank you for the comment and for supporting the channel. Your concerns about Government overreach are shared by many. A comedian once said "its a big club and we ain't in it!" Please keep watching and subscribe ;-)
If eating bugs is so healthy then shouldn’t they be rolling this out in countries that have plagues of locusts then they can readily swap from one food source to another and the amount of financial aid from us could be slashed dramatically!
That way they’d have readily available food sources whether swarms of locusts hit them or their crops in the years they don’t have locust problems!
Also I’m assuming that the locusts would then be deliberately bred for consumption across many nations, and seeing how many things seem to ‘accidentally’ escape into the wild, many more countries would become affected with crop losses. Imagine how much fun that would be in the American mid-west 🤔
Hunger games are definitely on the agenda in that amazing ‘new world order’ they have planned for us. You can be assured none of the ‘elite’ will have bugs on their menus, though a goodly number may be seen holding them telling us how nutritious they are (especially from Hollywood) but you’ll never see them bite down and ingest them, that’s only for the poor folk!
I'm sad by how accurate I was here
@@D_B_Cooper that includes your children! If you get divorced the state will decide who is to look after them, or put into care if necessary, the children have no say in it, government experts decide!
If they do this then everyone who gets penalised should be entitled to every penny they paid in paid back. How this would be legal I have no idea, its theft!
Fells like a class action coming
Paid Ni for 40 plus years on the assurance of a pension. If they refuse to pay out its fraud . Pure & simple. 12 million law suits.
Hi Harassed, thank you for your comment and for supporting the channel. Feeling that changes to the pension system might be unfair is understandable. If significant alterations are made, there should be measures to ensure those affected are treated fairly. However, legally demanding a refund of all contributions is complex as NI is just another tax to fund the Government spending plans and has already been spent. Please keep watching and subscribe ;-)
A lot of your words are errant “claiming the state pension” it’s a loan we give the govt
@@jeremyhares979guy fawkes
If this is true then there will be an uproar - how the hell can we (actual people who worked day in day out) be screwed to pay for people who have never worked ffs
Hi Adiem, thank you for your comment and for supporting the channel. It's important to ensure fairness in the pension system. t's understandable to feel concerned about unfairness with the state pension and if there are any changes to pension policies, they should be transparent and fair to maintain trust in the system which is starting to crumble. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
If this happens - then why the hell bother saving. Or even working? No incentive to do either. I'll just sit on my arse and hold my hand out.
This is why Gen Z ain't working. Work too much Soz ... no pension.
Hi Stuart, thank you for the comment and for supporting the channel. There must be an incentive for everyone to contribute into the system. Clearly, there are fewer people paying and working whilst there are more people claiming the state pension and living longer. The maths do not add up over the long-term. If the deficit keeps increasing, paid for by the Government, then how does this get repaid? More taxes? Please keep watching and subscribe :-)
Hi DC, thank you for the comment and for supporting the channel. I can feel the frustration and that is a response from many. However, we need to take responsibility for our own financial future and be prepared for any curve balls along the way. If you can foresee having less money in retirement, we should use that heads up as the trigger to save more so we can have the lifestyle we deserve. Please keep watching and subscribe :-)
A lot of people do that - and they're no-where near retirement age - called Dole Dwellers I believe......or you also have the economic parasites from abroad - also known as 'gimmegrants' !
Maybe that’s part of the plan, be subservient… you’ll own nothing and be happy 🤔
Pension is NOT a benefit!!!!!
In their eyes it is.... and if you make trouble, they can sanction you.
@@janedoe6350 fuck them
Exactly right! Imagine a private pension company trying to pull this scam - you pay in all your life and then they turn around and say no mate, sorry, but you have enough money to live on already, so you can't have the pension pot you've paid into all your life.
@@randomnesspersonified Yes, but here's the point, Private companies are not allowed to run Ponzi schemes. The Gov don't put your money away.... they use new investors, to pay the old ones. And they are running out of new investors because the young can't afford to have kid.
Gov have been using immigration to bring in the new investors while pretending they don't like this immigration and pretending that they want to stop it. It's all a problem of demographics.
They need more young contributors to pay the old ones who are living longer. And like all pyramid schemes,it will come crashing down. Currently, this "means testing" is just a way of them buying more time. But the reality is.... they are broke. Your moneys gone. It was spent the day you deposited it!
Pensioners of today may remember how thair parents scrapped and scraped to save for retirement and if you fell short and asked for help you were means tested. If you had a nice table and chairs ect you were told to sell them to make money. Also fridges, freezers and televisions were all classed as luxuries. There will be some heart break.
We’ve all worked hard, and now there’s a chance they might start means testing our pensions? That could seriously affect our retirement plans.
It’s frustrating. The idea that after all these years, we could end up with less than we expected-it just doesn’t seem fair. I’ve been wondering how to protect what we have, especially if they go through with this means testing.
That’s what’s been on my mind too. We’ve been counting on the state pension as a key part of our retirement income, but now it feels like everything’s up in the air. I’ve started looking into other ways to secure our financial future, just in case.
I’ve been thinking about how this could impact not just us, but also our kids. If we end up with less from the state, it could mean dipping into our savings more than we planned. It’s a lot to consider.
And with inflation and the cost of living going up, it’s getting harder to stretch our money as it is. I’ve been worried about how we’re going to manage if we have to rely less on the state pension and more on our own savings.
That’s why I’ve been talking to our financial advisor, Eric Paul Elmer, about what we can do.
As soon as they changed the name to a benefit I knew what the psychos running things were planning.
Hi again L, thank you for supporting the channel. The state pension has been defined as a benefit since 1992 and that may now come with strings attached as it is part of the social security system now. Let;s hope that any changes are communicated decades in advance. Please keep watching and subscribe ;-)
I’m ok with a means tested state pension. Can I have my NI contributions back please? 🤷♂️
No, because they call the shots.
Hi Banthah, thank you for the comment and for supporting the channel (and for the positive humour). Agreed - Please take a ticket and form an orderly queue - BTW I have sharp elbows so no pushing in! Please keep watching and subscribe :-)
You are getting your NI Contributions back - it's called your pension.
Your NI Contributions don't pay for your retirement. They paid for other retirees at the time you were paying them. People currently paying NI Contributions will be paying for current retirees. That's how the system works.
@@VinoVeritas_ well now, I stand corrected !
Cannot be done in afraid, if you paid into it, all your working life, you will get full Pension
Hi Glenn, thank you for your comment and for supporting the channel. Your NI has already been spent and we will reply on the younger generations paying NI to fund our state pensions. A full pension may be available but at what age as this also keeps increasing as the preferred Government option. Please keep watching and subscribe :-) Our next video is a Gneeral Election special which you might find interesting.
Unless , perhaps if you have a largeish private pension , then you may lose...£10 ,for every £500 over £30,000 ? That's the govt's plan , it is thoughtby some .
Not so
I am in my early 60s and retired at 53. Lots of people gave me pushback because they had difficulty grasping the concept of not working if you don’t have to. I looked at my life as stages. I earned everything I have now through a lot of hard work, but I owe it to myself to “stop and smell the roses” in my final stage of life. In my case I left the country after I retired and live in Latin America. It allowed me to get away from all the negative things happening in the UK while appreciating my new environment. I have yet to meet anyone who regrets retirement.
Hi Austin, thank you for your comment and for supporting the channel and for sharing your story. It's inspiring to hear about your journey. Many people struggle to understand the concept of early retirement, but you've shown that it's possible through careful planning and hard work. Embracing a new environment and getting away from the negative aspects of life in the UK sounds incredibly rewarding. Your approach to life stages is a great reminder that we owe it to ourselves to enjoy the fruits of our labor and "stop and smell the roses" in our later years. It's encouraging to know that you haven't met anyone who regrets retirement, which speaks volumes about the value of taking time to appreciate life. I hope your story can motivate others to carefully plan and consider their own paths to a fulfilling retirement. Please keep watching and subscribe. Our next video abour the General Election goes live today which you might find interesting.
Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
This is true. I'm in my mid 40's now. My wife and I were following this same trajectory. Last two years, I pulled out my money and invested with her wealth manager. Not catching up with her profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
I'm sure the idea of an investment-Adviser might sound controversial to a few, but a new study by Motley-fool found out that demand for Financial-Advisers sky-rocketed by over 42% since the pandemic and based on firsthand encounter I can say for certain their skillsets are topnotch. I've accrued north of 880k within 16-months from an initially stagnant Portfolio.
Trustworthiness is the issue: Entrusting someone with your finances requires a high level of trust. It can be difficult to determine if a financial advisor is reliable and has your best interests at heart. It's essential to find an advisor who operates with integrity and adheres to ethical standards. But you seem to have it all worked out good for you, so I’m by my screen waiting for your recommendation.
Basically ur better of going on benefits for most of your life. Like some people I know cos they thought it was their right. If you work hard and have savings you will be punished. Don't think it can getting worse
Well said !! work does not pay.
Naahh...4 kifs , single , of course, this person would never get a nett income better than benefits
....housing allowance being perhaps the big one , esp. in the S.E.
Yeah when i was younger a lot of girls would deliberately get pregnant and say i want a council house and pay nothing. But the likes of you and me having the pleasure of paying for them what a lovely system @normanpearson8753
Vote reform UK to stop this happening please!!
Hi Cliff, thank you for your comment and for supporting the channel. Relying on benefits might seem easier in the short term, but it can limit your financial independence and opportunities in the long run. Working hard and saving, despite the challenges, builds financial security and resilience and less reliant on the State. Self-esteem and respect don't have a value attached to them. Please keep watching and subscribe :-)
I'm getting this from Labour. They keep saying we won't tax WORKING PEOPLE. It feels very specific
Hi Whalewraith, Thank you for the comment and for supporting the channel. That comment has stuck with me too - why use that particular wording - are retirees are no longer working does that mean future retirees could be fair game in the future? Please keep watching and subscribe :-)
I'm pretty sure that they are referring to tax avoidance and evasion, offshored for tax purposes companies and other scams and schemes favoured by tories.
Yes they will
That's a bit of a stretch - they can't even define what a working person is !
@@jamesbarbour8400will probably struggle to define what a person actually is as well
As my wife and I were never going to get anything other than mediocre company pensions to top up our state pensions, after both getting made redundant by the age of 50, with no prospects of ever getting decent work or indeed any meaningful work thanks to ageism we sold up in the south East and moved to a very modest house in the East Midlands, all our other money and one small inheritance was put into ISAs. These ISAs and tiny company pensions give us circa £4 kpa each on a drawdown basis, and will be just about gone by age of 90. If our pension is going to be cut on account of saving we will either buy a better or more convenient house leaving us with little savings or we will spend it down beforehand.
Buy some gold britannias.Hide them away.
Hi Steph, thank you for your comment and for supporting the channel and for sharing your story. Your proactive approach to managing your finances is commendable. It's essential for the Government to recognise and support those who have diligently planned for their retirement. Policies should encourage saving without penalising those who have been responsible. Hopefully, any future changes will consider the efforts of people like you and ensure that saving for retirement is always rewarded, not discouraged. It is unlikely that a means tested state pension will affect you, but I hope that there is support for you if you need it. Stay strong. Please keep watching and subscribe :-)
@@bertibear1300 I bought some krugerrands 15 years ago
Disgraceful. People save for reoairs to their homes. It is robbery. People paid into state pensions.
Hi Isherwood, thank you for the comment and for supporting the channel. Taxing pensions can feel unfair, especially when you've saved responsibly. People rely on these savings for home repairs and other necessities. It's important to recognise that people paid into state pensions expecting security in retirement, and additional taxation can feel like a breach of that trust. Your concerns highlight the need for a fairer approach to pension taxation and the state pension specifically. Please keep watching and subscribe :-)
state pension roughly £11,000 a year, by increasing qualifying age from 65 to 67 recently the government have already taken £44,000 pounds off me and my wife.
Hi Jh, thank you for your comment and for supporting the channel and for sharing your personal story. Thsi highlights some of the financial stresses on the state pension. The Government policy is to raise retirement ages, rather than means-testing the system. When the retirement age is 68+, how many other couples will have to accept paying into the system for more years only to claim for fewer years? Please keep watching and subscribe ;-)
As of today if you retire it is 66. and will keep going up over the coming years. Mine will be 66 next April.
Thugs
If you havnt paid a bean at 66 do you get pension credits
@@kevinpounder Most likely universal credit, if you have no NI credits paid by DWP or previse employers
Just think, if the government had paid my national insurance contributions into a diversified portfolio of investments for the last 20 years and continued to do so for the next 25 years, instead of using them to pay for some roadman's 15 illegitimate kids, they wouldn't need to means test my state pension.
Hi Log, Thank you for the comment and for supporting the channel. I understand your frustration. Investing contributions in diversified portfolios could be a forward-thinking solution for future stability starting at birth maybe and let compounding work its magic? We need innovative, sustainable approaches to pension funding that ensure fairness and reward lifelong contributions but it won't be easy to keep everyone onside with no financial disadvantages or poorer outcomes. Please keep watching and subscribe :-)
The problem was that when they started to pay out old age pensions, they used the current receipts to pay for those retired or retiring. This works well enough if there are relatively plenty of workers paying into the system and few pensioners. We have an ageing population and a falling birth rate, hence the problem.
One solution for the future would be for the State to pay in, say, £3,000 or £4,000 into an individual pension fund for every newborn from birth to 18 years of age and investing it in equities for those years and forwards. There would be plenty by the time that person reached their retirement age of say, 70. Perhaps richer parents would have to contribute instead of 100% from the State if wealthy enough.
NI contributions can only be used to pay for a limited number of benefits - mainly the State Pension, but also Jobseeker's Allowance, and Employment and Support Allowance when those benefits are paid on the basis of the claimant's NI record.
Most other benefits including Universal Credit are paid from general taxation.
@@jeremybarker7577 There is NO separate fund where NICs go.
So basically if you do the responsible thing and try and make provision for your old age, they want to punish you.
Hi Jo, thank you for your comment and for supporting the channel. It does seem that the system is set up to penalise those who take the responsible route and plan for their old age. By proposing means testing for the state pension, individuals who have saved and made provisions for their future are being punished, while those who haven’t are rewarded. This creates a disincentive for responsible financial planning and undermines the principles of fairness and personal responsibility. Please keep watchin gand subscribe :-)
Britain has the lowest state pension across Europe as it is!!!!!!!!! That idea is just bonkers, but it's an idea that I suppose will find political traction. The state pension is not enough for a person to live on per week. The minimum wage is between £5/6K more per year. So there needs to be a real and grown up debate on how to deal with that anomaly.
Hi Chris, Thank you for the comment and for supporting the channel. You raise a crucial point. Britain’s state pension needs serious attention despite being amongst the lowest in Europe. Minimum wage is £11.44 per hour x 37 hours per week x 52 weeks = £22K per year vs state pension of £11,541 per year. How do we redress the balance without breaking the bank and our backs in the process? An adult conversation indeed but are the current crop of politicians willing and able? Please keep watching and subscribe :-)
@Economese my rent alone is £14,400 a year imagine paying that with state pension. It would only leave the person on minimum wage with just over £7k to pay for bills and food.
That is not true at all, in Sweden the pension is circa £600 a month.
The difference is that you have to pay in through working and contributing.
The pension is based in him much you have paid in.
If you have not worked you will be destitute when retired.
UK state pension is already means tested via the progressive tax system, so recipients of higher pension income, including State Pension are taxed more. Alternatives of stopping State Pension for those who have contributed to it their whole lives would never be forgotten by use senior voters.
Hi Mushroom, Thank you for the comment and for supporting the channel. You make an excellent point. The progressive tax system already ensures that those with higher incomes pay more, including on their state pensions. Preserving the state pension for lifelong contributors is crucial for maintaining trust and fairness. We should be able to focus on enhancing the system without compromising the benefits retirees already rely on. Is the social contract about to be rewritten? Please keep watching and subscribe ;-)
Underrated comment. Hasten to add that if more individuals have been auto-enrolled then the present day, there may be a larger proportion of the population being taxed via the progressive tax system (which could contribute to funding the state pension).
@@Random_Musings-z5x The state pension is only funded from NI contributions although if they are insufficient to cover the cost in any year the deficit is topped-up from general taxation. It's been many years since a top-up was required.
Its simple as this.If they decide to do this I will be contacting my MP and they wont dont dare do this. There testing the water by putting rumours out....Bring it on but give me back all my Ni contributions at higher tax rate please for 37 years.
46 years I have contributed. I think it is apauling..
Hi James, thank you for your comment and for supporting the channel. Sadly the NI is just another tax despite the name and it has already been spent. We need future generations paying NI to pay our stat epensions. Curently the preferred option is increasing the retirment age in response the pension crisis. Please keep watching and subscribe :-)
Labour will bring this in as they are a Party of Means Testing !! The triple lock will only apply to those on Pension Credits along with Winter Fuel payment. They will also increase TAX on any savings or investments but do not worry as the Money will go to the poor who Won't Work can't Work and no intention of Working..
A tax and spend party , O.K. , if we habe a booming economy , but......
Also will we have our unchecked illegal immigrants contribute into our society !!! Very doubtful
Hi Robert, thank you for your comment and for supporting the channel. Labour's manifesto emphasises protecting the triple lock and supporting pensioners, but concerns about means testing and increased taxes on savings are valid. We should give them the "benefit" of doubt and judge on performance. Please keep watching and subscribe. :-)
Labour are the party of theft.
I wonder if the recent announcement by M/s Reeves re withdrawing the pensioner's winter fuel allowance is actually legal, as this was rushed out with no parliamentary discussion, & was not on their manifesto so on the face of it it was a idea dreamed up on the back of a fag packet within a couple of days after getting elected, to punish pensioners & reward public sector unions members! Labour never changes, 2 days to work out the details of a £20 Billion "black hole", that is so unrealistic, it takes more time than that, people have such short memories, but this lot seem even worse than Blair's Government
Means testing never works and is impossible to administer. Once again if they try to implement it will be those who have never worked and have no private pension that will benefit.
It isn't impossible to administer but it is expensive and open to fraud due to people failing to declare income and capital they have - sometimes deliberately and sometimes in error.
Hi Bethers, thank you for your comment and for supporting the channel. "eans testing is often complicated and inefficient to administer. Implementing it for state pensions could unfairly benefit those who have never worked or saved privately, while penalising responsible savers. The Australian system, with its combination of the Age Pension and superannuation, successfully supports retirees with means testing. There will be a lot of resentment as well if implemented as it will be deemed unfair. Please keep watching and subscribve ;-)
Problem is some people might retire early on the basis of company pension plus state pension. Those people may have stayed in work if they had known that state pension was going to be scaled back or fully taken away. But once they are in that over 55 age bracket it’s likely too late to get back into the workforce at a level that will allow them to cover the shortfall. I really can’t see it happening unless with a huge lead time.
Hi David, thank you for the comment and for supporting the channel. It's understandable that changes to the state pension system can create concerns, especially for those nearing retirement. However, means testing the state pension could help ensure that resources are allocated fairly and sustainably, providing more support to those who need it most. There is a 10+ year timeframe about state retirement age increases but more time might be needed for such radical means tested changes. That said, the system is not sustainable in the current format. Please keep watching and subscribe :-)
Governments don't tend to think long term. Most individuals don't intend to be around when the chickens come home to roost. It's why kicking the can down the road is such a popular tactic.
Imagine if a private pension company tried to pull a stunt like this they'd be sued left, right and centre.
Hi Carla, The Government are already increasing the state pension age from the current 66, to 67 and onwards to 68 and beyond. There needs to be trust in the system which I feel is crumbling at the moment so make sure you have altrnative arrangements in place so you can have a dignified retirement to live on your terms.
@@Economese Too late for that I'm afraid
Just spend all your money and then they can’t take it away..or take it out in cash and hide it.
Cash is useless if they bring in CBDC. Unfortunately I think it may be part of the plan.
That's why Baby Boomers are cruising!!!😮
Hi David, thank you for the comment and for supporting the channel. I am afraid that we might sleepwalk into a digital currency world and cash will be a thing of the past. Please keep watching and subscribe. :-)
Buy gold, empty your accounts.
@@tomf4547 Gold is at a record price - rather expensive to buy it now.
Here’s a deal give me back all of my NI contributions and I’ll rescind any claim to a state pension
Hi Jason, thank you for your comment and for supporting the channel. I think there are several people in the comments who would gladly do the same. Opt-out and let us invest the money elsewhere. As the NI has already been spent that might not be an option though - sadly. Please keep watching and subscribe :-)
@@Economese Just checked state pension forecast - 41 years' contributions, estimate 261.43 per week. Checking the NI contributions, the last few years have been about 5k each year, so I would be happy with that option!
What's the point of working all those years paying ni contributions, going without to save a little for retirement or pay into a private pension if they are going take it from you. If you have paid into and have the required number of years everyone should get the same amount of state pension those who have not should get a slightly lower rate.
If you never work and live in a council property you are actually better off when you retire than someone who has worked all of there life.
Agreed
@@richardeggett392
@@richardeggett392could you please explain that in a bit more detail, I’m genuinely interested.
@@huskyhooligans999 I have a sister in law, she is retired even though she has never worked since leaving school at age 15.she has never married but has 3 grown up children. her sister another sister in law, worked all her life, she was married her husband died in his 40s, they had a mortgage, she worked 60 hours a week to pay the mortgage and support her kids, when she retired she found that because she owns her own home she does not qualify for extra benefits, her sister gets extra pension credit free dental treatment and free glasses. the other one does not qualify for pension credit free dental or free glasses because she owns her own home. so if she had never worked she would be better off now,
@@richardeggett392 even better, if you just rock up in a dinghy claim your an asylum seeker then everything is free.
What a fantastic article Economese. I paid National Insurance for more than 40 years and I am still paying tax at 76 due to having a Self Invested Pension Plan (SIPP) which I draw upon each year. The State Pension added to the money I draw from my SIPP puts me over the tax threshold. The SIPP is money I save saved from my income. I was a victim of Gordon Brown's tax raid on self-invested pensions and I dread the latest Chancellor doing the same. Of course I could have squandered my hard earned money on booze, fags and gambling and then rely on the state for handouts ...like millions of those who just voted Labour.
Hi John, thank you for your comment and for supporting the channel with your kind words and for sharing your story. It’s indeed frustrating to see responsible savers potentially penalised. The concerns about past tax policies and the impact on self-invested pensions are valid when Gordon brown damaged pensions and taxation within them which is still being felt today. It’s crucial for the Government to recognise the efforts of those who have saved responsibly and to avoid implementing measures that unfairly burden them. The system is not fair for everyone, but dignity and self-respect are hard won and last forever - so well done for making sure you have a retirement on your terms. Our latest video released over the weekend is about Banking Big Brother and the increased surveillance on our bank accounts which you might find interesting. Please keep watching and subscribe :-)
Many countries have tried to deal with the pension conundrum....increasing pension age as we are in the UK...or increasing the number of years to qualify as Ireland and the Netherlands do ...but it still remains an enigma....however the real pension time bomb is the pensions in the Public sector ..some civil servants will receive a pension of 1 million pounds ...AND claim their state benefit...
Hi Terry, thank you for your comment and for supporting the channel. You're right, the pension issue is complex, and many countries are struggling with it. Increasing the pension age and having qualifying years are common strategies. However, the significant pensions some public sector workers receive can add strain to the system which are funded by the taxpaer. Balancing fairness and sustainability in pension policies is crucial to addressing this "pension time bomb" while ensuring that all retirees are adequately supported. The new Government has promised pension reform. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
Hi, So this would encourage not saving.
Not a good idea.
Take care M.
Hi Mark, thank for the comment and for supporting the channel. A means-tested state pension discourages saving because people fear that their savings will reduce their pension benefits. To encourage saving for retirement and increasing private savings and investment, there should be more tax incentives, employer-matched contributions, and financial education to highlight the long-term benefits of personal savings for retirement. The system is creaking so we need to be ready should this ever come to pass. Please keep watching and subscribe :-)
That's what Labour want. That way they control everyone's income and therefore their lives
cbdc will maybe not allow you to save....time limit on you money then gone if not spent.all possible in the future
They don't want you to save. The want you in their pocket.
In Australia we also have Superannuation where workers allocated pay rises to be paid in every pay day but not accessed until retirement. Now the Government keeps eyeing this massive pot of workers money and are trying in every devious way posdible to getbtheir grubby hands on it❗😕😡
Hi DOwn, thank you for your comment and for supporting the channel and sharing your knowledge. The superannuation is a vital part of Australians' retirement savings, built up through years of hard work. It's crucial that this money remains secure and solely for the benefit of retirees. Any Government attempts to access these funds should be met with strong opposition. Let;s hope it doesn't happen - keep me posted. Please kepe watching and subscribe ;-)
We've all been told to be responsible to plan our retirement. If state pension was part of that planning then the state intervened in our personal planning process. If the pension is then reduced or removed at the point of retirement when we cannot change our past planning decsions then we have been stuffed by the state. Our responsibleness would have been rewarded with reckless irresponsibility. Given the state pension often makes up a third to a half of retirement income we'd need to know at least 20 years in advance if it wasn't going to be there.
Hi Jeff, thank you for your comment and for supporting the channel. You make an important point. Many have responsibly planned their retirement with the state pension as a crucial component. Changing or removing it at retirement would undermine years of careful planning, leading to financial insecurity for many. Any significant changes to the state pension system should be communicated well in advance, ideally 15-20 years, to allow for proper adjustment and advance planning. It's crucial to uphold the trust and stability that retirees have relied upon. Please keep watching and subscribe :-)
@@Economese fully agree 👍. Thanks for the reply
I worked and paid into pension for 45 years, my state pension as of now £170 per week, bloke in the pub who has never held full time job, cash in hand,no stamp, £250 per week, tell me where I went wrong by working most of my life?
Hi Gary, thank you for your comment and for supporting the channel. The current system does seem unfair when it is abused. Means-tested state pensions aim to support those with low or no income in retirement, which can lead to situations where individuals who haven't contributed as much still receive substantial benefits. You can't place a price on dignity and self-respect, so congratulations on having such a long working career. I hope you get to enjoy a dignified retirement. Please keep watching and subscribe :-)
@@Economese Thank you.., and subscribed 👍
There is a thing we used to call the social contract. I’ve saved over the years based on the sure knowledge of a state pension for which I’ve contributed disproportionately. If the government now wishes to retrospectively renege on that contract I’d suggest something close to anarchy would result. I’m 65, by the way.
Hi Ian, thank you for your comment and for supporting the channel. The state pension has been a cornerstone of the social contract, promising security for those who have contributed throughout their working lives - as is the NHS. Any move to undermine this commitment could lead to significant civil unrest. It's crucial for the Government to honour these long-standing promises to maintain trust and social stability, especially for those like you who have planned their retirement around them. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
I worked in Australia solidly for 30 years . Am now living back in the UK where I worked for 20 years . How ever I retired 65 . I get approx £860 pm . I have my own. House.
However when I tried to claim my Australian pension. I was told because am living in the UK just now am not allowed to claim any of my pension . The Australian pension scheme only benefits two class’s of people 1: unemployed 2: Politicians they have the most,generous pensions,and have sent things up so they pay very little taxes. And that a fact.
I worked in Germany , and just getting uk
Pension, I also get pension off Germany , so why can’t you get your Oz pension
Hi Bob, thank you for your comment and for supporting the channel and for sharing your story. It’s maddening to hear about your situation after working hard for so many years in both Australia and the UK. The rules surrounding pensions can indeed be complex and seem unfair at times and unequally applied. The Australian pension system does have strict residency requirements which can prevent people living overseas from claiming their pensions, unless certain conditions are met. This can feel particularly unjust when politicians benefit from more generous arrangements - as always. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
Hi User, thank you for your comment and for supporting the channel. It’s great to hear that you are receiving pensions from both the UK and Germany. The ability to claim pensions from multiple countries typically depends on the specific agreements between those countries and the rules of their pension systems. Germany and the UK have agreements that facilitate pension claims for individuals who have worked in both countries - which could be due to the EEA region? Australia's pension system has different rules and more stringent residency requirements, which can make it challenging for those living abroad to claim their pensions. These requirements are part of Australia's policy to ensure that their social security benefits are primarily available to residents. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
Can you imagine if your private pension company said we will means test you for your pension we promised you 35 years ago and give your pension to those who havnt paid in anything or little. It seems in this country that the more you try to look after yourself the more they shaft you to give to those who have never worked a day in their lives.
Hi Alpha, thank you for your comemnt and for supporting the channel. It's disheartening to think about changes that could undermine the promises made when you first invested in your pension. It's essential to have a system that rewards individuals for their long-term planning and contributions. While supporting those in need is important, it shouldn't come at the expense of those who have diligently saved for their future. A fair and balanced approach is necessary to ensure everyone receives the benefits they've worked hard for while still maintaining a safety net for those genuinely in need. Our next video is about the 10 Rules of Money which you might find interesting. Please keep watching and subscribe ;-)
It not fear I work 50 years pay my tax and N/ and still pay tax as a penisoner i and why can’t pensioners have a little bit of savers it wrong the government needs to sort the thousands who not working and make them work for the money.
Hi Gladys, thank you for your comment and for suypporting the channel and sharing your story. After working and paying taxes for 50 years, it's frustrating to still face financial challenges as a pensioner. It's important that the Government recognises the contributions of retirees and allows them to save without penalty. I am more concerned about the younger generation who may not get to enjoy a state pension in the current format. Please keep watching and subscribe :-)
Thank you for your reply and yes I agree what you saying about young people l have a son and he work really hard and when he was 14 year old he had a paper round. I know I got a good lad., 🌹
Somebody has to pay those hotel bills !!
Hi Alan, thank you for your commnt and for supporting the channel. According to the Home Office Media, the UK Government is currently spending approximately £8 million per day to house asylum seekers, including those who have entered the country illegally. This figure represents a significant burden on the taxpayer, amounting to around £1.5 billion annually. That is a lot of state pension. Please keep watching and subscribe ;-)
Pay nowt in get nowt out. 10 million immigrants since 1997!! That's why the workers are shafted again.
Hi Tees, thank you for your comment and for supporting the channel. Uncontrolled immigration is unlikely to help the current state pension crisis as the UK needs more people contributing NI due to demographic changes such as fewer workers and falling birth rates. Please keep watching and subscribe ;-)
So people like myself who has worked all my life, saved for my retirement may well be penalised. So I may as well have not worked all my life, and saved money and invested, for what? If this becomes reality there will be civil unrest in our country. We can waste money on keeping illegal migrants at a cost of £8m per day on people that shouldn't even be in the UK. Makes my blood boil.
Hi Lee, thank you for your comment and for supporting the channel. I understand your frustration regarding means-tested state pensions. It's disheartening to think that responsible saving and investing might be penaliszed. The issue of illegal migration and its costs is complex, but addressing it should not come at the expense of penalising those who have planned for their future. Your thoughts have been echoed throughout the comments and any changes are unlikely to affect those of us close to retirement. I fear for the younge rgeneration who may not get the same state pension support. Please keep watching and subscribe :-) Our next video is a General Election special, so that might be of interest.
@@Economese thanks for your reply. I have subscribed to the channel and will re visit from time to time. On the subject of migrants, I'm not against helping someone who is genuine and needs help short term. However, the people who are now arriving in their thousands are not people who are destitute in my opinion, the vast majority are young men, who have paid £6,000 to get on a boat. I fear that our own people's quality of life is going to suffer because of this migrant mess, with our NHS already at breaking point, not to mention inadequate housing for our own people. Rant over.
Rishi Sunil was right…..Labour is definitely disrespectful towards elderly people. 😢
Sunak
We were told to have a private pension and or savings for our old age to supplement the state pension and keep us out of poverty.... its absolutely evil and wrong to means test state pension,. I don't care what you earn or have saved if you paid in you are entitled..
Hi Debbie, thank you for your comment and for supporting the channel. The state pension is a fundamental entitlement based on years of contributions through National Insurance. People were encouraged to save and plan for their retirement to avoid poverty, and changing the terms now feels like moving the goalposts. Means-testing the state pension would undermine the principle that those who have paid in are entitled to receive it, regardless of their other income or savings. It's essential to maintain the integrity of the system to ensure fairness for all those who have paid in. Our next video out this weekend is about the 9 Laws of Money which you might find interesting. Please keep watching and subscribe ;-)
You now know why you were told to have private pensions . So the Government can steal it claiming you don't need it.
Would be End of THAT Govt . Forever , State pension is paid from Every Paypacket N. I. Deduction . It's a Right, & WOULD BE HIGHER IF UK Govt . WASN'T STEALING OUR PENSION MONEY for over 30 year to Pay of National Debt.
Hi Douglas, thank you for your comment and for supporting the channel. I understand your comment but the state pension is a benefit and was classed as such in 1992 and it has to be claomed as with any other benefit. Your deduced NI has already been spent. While it's true that state pensions are funded by National Insurance contributions, it's important to understand that NI also funds other critical services like the NHS and various social security benefits. I think the cost of servicing the national debt was £140 billion last year - shocking. Please keep watching and subscribe :-)
@@Economese NI was never Intended to Pay OFF National Debt, If Govt. Had tried Stealing it back @ the Begining of NI they'd have been Lynched. NI was a Voluntary Contribution back when it started..
This would incentivise people to not save for their own pension. It’s crazy!
The Government Strategy is becoming obvious. Get people to save for retirement & then punish them by removing their State pension when they do. It's called bait N Switch. If you want a state pension waste every penny & save nothing. Best Advice ever .
Hi CP, thank you for your comment and for supporting the channel. I completely agree. Means testing the state pension would discourage people from saving for their own retirement, which is counterproductive. It’s essential to maintain incentives for individuals to be financially responsible and plan for their future and by giving them 10-15 years advanc warning of any changes. Pleas ekeep watching and subscribe :-)
The state. Pension is a contract between the government and the purchaser.The need to be held legal accountable
Hi Glenn, thank you for your comment and for supporting the channel. Many people feel that they've entered into a contract with the Government through their contributions, expecting fair returns in their retirement. It can indeed feel like a breach of trust when changes impact those expectations. Fair treatment is essential to ensure that everyone receives the benefits they've diligently paid into over their working lives. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
When i retired i was told the amount of pension i received was dependent on the years i contributed the stamp.
I had a private pension and the full stamp payment if i hadn't got those years i would have a smaller state pension.
HOW IS SOMETHING I PAID FOR A BENEFIT!!
Hi Jeffrey, thank you for your comemnt and for supporting the channel. The State Pension is based on your National Insurance contributions over your working life. It's not a benefit in the traditional sense but a system where your contributions determine your entitlement. Your private pension is separate and doesn't affect your State Pension amount. This contributory benefit needs to be claimed and the eligibility criteria can change - for example will the triple lock increase become means tested? Our NI have already been spent and your state pension will be funded by future generations and they are fewer than in our day. Our next video is about the surveillance state and control which you might find interesting. Please keep watching and subscribe :-)
@@Economese How can the future generations be fewer than in our day if the population is continuously increasing by a large amount each year?
What needs to be investigated is do any the Mp,s & Top civil servents have any links to the Pension companies that would profit massively from means testing of the state pension. ? Lobbyists offering seats on the board or share options ?
Hi again Stuart, thank you for supporting the channel. I had not thought of that angle. It's important to ensure transparency in Government decisions. Investigating any potential links between MPs, top civil servants, and pension companies is crucial to prevent conflicts of interest. Scrutiny of lobbying activities and board appointments can help maintain public trust and ensure that policies are made in the best interest of all citizens - just like securing PPE?? Please keep watching and subscribe ;-)
@@Economese Just think how many millions to be made out of means testing pensions.for Mps & Top civil servents linked to special interests , Politics is a dirty business. Big Business pays lobbyists to advance their interests. If Pensions are compulsory & pension companies can charge whatever they like then it's pigs in the trough time. Ai companies that track the bank accounts will also profit massively. As an indication of just how much money is to be made out of advanced computer Ai Technology. Track n Trace cost 37 BILLION. K. Ching k Ching K Ching.
@checkCanopy Great comment but will never happen. Do as I say not as I do . The last thing they want is their bank account scrutinised.
The Australian state pension is nothing like the uk state pension, it is means tested but it’s been like that since 1960, indeed it was means tested even before that but it had a significant change in 1960. It’s far more complex and totally different system than we have in the uk and employers are expected to provide what we would call finally salary pensions to their employees in many cases, these are largely gone in the uk. To suggest the means tested portion of the Australian system as an example of a potential change is a gross oversimplification of what the change would actually need to be implemented if they really wanted an Australian style pension system to replace what we currently have. Australia never had a system like that in the UK in the first place.
Hi Thomas, Thank you for the comment and for supporting the channel. You're right. The Australian state pension system is indeed very different from the UK's and has been means-tested for decades. Their approach, which includes employer-provided pensions, is more complex. Using Australia as an example oversimplifies the potential changes needed in the UK, but can be used as inspiration or as a base or foundation. Instead, we should focus on tailored solutions that consider our unique context, demographics, economy, business and other pressures such as longevity. We need to push for informed debate on how best to reform our pension system to ensure security and fairness for all retirees. Please keep watching and subscribe :-)
However those compulsory superannuation payments made by an employer are paid into a superannuation management type account, often run by banks or insurance companies and the end result is dependent on how well these funds do in the market place, not final salary related.
The complex system here in Australia provides emo
ployment for bureaucrats and very high fees for fi ancial advisors and accountants. Also the union sponsored superannuation funds provide directorships for defrocked politicians if left wing persuasions.
Not surprising since so many politicians have gheir own scheme and are ghemselves party hacks, defrocked lawyers and accountants. 😅😂😮
@@Economesebase rate age pension in australia is aus $1050 PF add ons too numerous to mention people who have never worked get age pension
😊income support is not taxed why are you talking about the state pension being taxed you said it’s a benefit
Really well explained video. Thank you for posting. Subscribed. 👍
Hi Jonathan, thank you for your comment and for supporting the channel and for your kind words. We are real people behind a real channel and each video takes about 12 hours from idea to post-prodcution and publishing. Your comments keep us motivated to keep going. Our next video is about the surveillance state and control which you might find interesting. Please keep watching :-)
I was contemplating buying into a SIPP pension but im wondering if my savings are better placed elsewhere. I've never been highly paid, but ive treated investment very seriously for many years and just because I had the foresight to invest throughout my working life, i feel that it would be unfair for me to lose some/all of my state pension. I have 33 out of 35 years paid in by the way. However, just to be on the safe side, I will mind my own business and move things around a little, whilst avoiding the rules about depravation of capital.
Hi Rob, thank you for your comment and for supporting the channel. The uncertainty surrounding the future of the state pension system is unsettling, especially for those of us who have diligently planned and saved for retirement. It sounds like you’ve been very responsible with your investments, and it’s only natural to want to protect what you’ve worked hard to build. A Self-Invested Personal Pension (SIPP) can be a great tool for retirement planning, offering flexibility and control over your investments. However, diversifying your savings and investments can help mitigate the risks associated with potential changes to the state pension system. It's wise to stay informed about the rules regarding deprivation of capital, as you mentioned. Moving assets around to safeguard your financial future while complying with the regulations is a smart approach. Ultimately, the key is to remain proactive and adaptable. Good luck and le tme know how you get on. Our next video out this weekend is titled Want To Retire Early at 62 But Worried? The Tough Road Ahead which you might find interesting. Please keep watching and subscribe :-)
@@Economese thank you for such a detailed response. I will keep an eye out on your channel.
I really cannot see means testing of the State Retirement Pension anytime soon. The cost of administering such a scheme would be ferocious. It is frankly easier simply to increase the age at which people can take it.
Changing the Triple Lock so that the middle of the three would be used would make more sense. Currently, with a minimum of 2,5%, the cost can only ever increase for the State.
Simon seems to think AI can investigate & interview the pensioners that get red flagged . Even if only 1 % are red flagged then it would take vast resources of labour from the DWP into the billions . 12 Million plus pensioners. Then of course the Ai that has been developed to moniter bank accounts . Is that free ? Track n Trace cost 37 BILLION. Again another plan thought out on the back of a fag packet. All the costs associated & means tested can easily be mitigated by a millionaire who simply parks his wealth offshore out of UK Jurisdiction.
Hi John, thank you for your comment and for supporting the channel and for your insights. I agree that means testing the State Pension would be costly and complex to administer. Raising the pension age is a simpler alternative and is the preferred option at this stage. Adjusting the Triple Lock to use the middle value of the three indicators (inflation, wage growth, or 2.5%) could help manage costs more effectively while still providing a fair increase for pensioners. Please keep watching and subscribe ;-)
People have factored the state pension into their plans and it would make a big difference to many including me, my private pension will top up the state pension so my wife and I won’t suffer a large drop in income and standard of living when we retire.
Hi John, thank you for the comment and for supporting the channel with sharing your story. You have thought ahead with discipline and sacrifice to provide a better retirement for you and your wife. This channel is dedicated to ensure others make the same informed and positive decisions. It's crucial to recognise that many people, like yourself, rely on the state pension as a key part of their retirement planning. Ensuring its stability and sustainability is essential for maintaining the standard of living for future retirees. Please keep watching and subscribe ;-)
State pension for a person who has contributed for 50 years is not a benefit this will go to a court
Hi K, thank you for your comment and for supporting the channel. The state pension is a benefit benefit but earned through decades of contributions. For someone who has contributed for 50 years, it’s unfair to classify it as a benefit and subject it to means testing. This could indeed be challenged in court, as it undermines the principle of fairness and the contractual nature of National Insurance contributions. Retirees who have diligently paid into the system deserve to receive what they've been promised, without unjust reductions. Please keep watching and subscribe :-)
I would go along with providing that the government returns all my contributions that I have paid in since I was 15. But we paid in therefore we get the pension no matter what
Hi again Eggy, thank you for the comment and for suporting the channel. I understand your perspective. It's crucial to recognise that many individuals have paid into the pension system from a young age with the expectation of receiving benefits later. The idea of means-testing raises valid concerns about fairness and equity of outcome. If the Government were to consider means-testing, it would be reasonable to ensure that those who have contributed significantly have the option to reclaim their contributions, whihc could be done through our trax codes? Ultimately, any changes to the pension system should uphold the principle that those who have paid in are entitled to receive their due benefits, maintaining trust in the system. Our latest video released over the weekend is about Banking Big Brother and the increased surveillance on our bank accounts whhchyou might find interesting. Please keep watching and subscribe :-)
Thanks, for your 2nd reply to my latest comment.
Because I’m on such a low income… i don’t pay any council tax; in which is only fair.
i live in a studio flat; so… not all that much to pay out really. My sister pays for the maintenance of the studio flat; so that’s a great help. I’m lucky to have her around whenever i do see her; even though we are not close. She’s very busy working for the NHS, so…..
I’ve never been married; and i don’t have any dependents either. i live alone; in which I’m quite happy with. Other than that… i do seem to get by, pretty well, these days, considering that my dad recently passed away. He used to always help me out. A great dad he was.
Other than that, I’m looking forward to receiving my pension each month ( it means I’ll have more money to live on, hopefully.) Only then, will i feel reasonably secure financially in my life.
Monday pm 22nd July 2024.
Hi peter, I hope you enjoyed the weekend. I am sorry to hear about the loss of your Dad, I lost mine during the pandemic and it is never easy to move on. When do you receive your stste pension? I am always here for a chat and a gossip so feel free to send me as many messages as you need. it might take a little time to reply as I have a full-time job as a co-owner of a financial planning firm. Stay strong and speak soon :-)
Yes, that's what i think the basic state pension isn't a benefit.
Hi Jeffrey, thank you for your comment and for suppporting the channel. While some argue that the state pension should be means-tested to ensure it goes to those most in need, it's important to recognise that the state pension is not officially classified as a benefit in the traditional sense. The Social Security Contributions and Benefits Act 1992, the state pension is indeed categorised under social security benefits. Introducing means testing could complicate the system and potentially penalise those who have saved diligently. This benefit also needs to be claimed and the eligibility criteria can change and have changed over time, including state pension increases if you live in certain countried when abroad. If it was a right or an entitlement, why the difference in rules? Our next video is about Banking Big Brother and increased bank account surveillance which you might find interesting. Please keep watching and subscribe :-)
What I'm most annoyed about is I'm taxed on my company pension and will pay tax until I die.
I've been retired for 20 years now and paying over £3000 a year in tax.So us pensioners with company pensions are still paying into the system. .
State Pension is a benefit that is paid for by all who pay National Insurance payments. For this reason, it should not be means tested. Those that do not need it could be encouraged to pay into social funds to benefit those in need. They could be offered a choice of different funds, even locally managed funds. A tax break could be offered as an incentive.
Hi Sue, thank you for your comment and for supporting the channel. There does need to be a different approach to pension reforms and a system to help those genuinely in need and not just gaming the system, should always be considered. Tax breaks for those who are contributing to others is also a good idea too. Please keep watching and subscribe ;-)
There are lots of people who receive full national insurance credits each year, yet have not actually paid national insurance. While those people continue to get those credits it seems like the resulting pension is almost by definition a benefit.
Owned asset of main residence means that I pay a 1/4 of my pension directly back to the consolidation fund to pay for government spending sprees, via council tax which they set at. £3200.
Hi Gway, thank you for your comment and for supporting the channel. I know it is frustrating when a significant portion of your pension goes towards council tax, especially when it feels like it's funding Government spending. However, council tax is used to fund essential local services such as education, waste management, social care, and public safety as well. It will be fascinating to see if there is council tax band valuation review as the current system was based on property values in 1991 - so it is likely that they will increase further - with more potholes! Please keep watching and subscribe :-)
@@Economese I live in a smallish council area and there is very little being done here, BUT those that work for the council are VERY well paid for what they do the CEO £150000pa CFO130000 and various different grades including a diversity and inclusion executive, loads of them and each one has larges salaries an other benefits which come from my tax and 50 other people just to pay that one ‘Brother’ and so on down the scales. They do don t do anything for me but get a salary that reflects a ‘very. Successful,business’ but it isn’t it is a sinking organisation that runs for their major benefit.
It all comes down to where the dividing line wll be drawn. If past experience is any guide the line will be set pretty low, as it is for (example) pension credit.
Hi David, thank you for your comment and for supporting thh channel. You're right; the dividing line for means-tested benefits tends to be set quite low, as seen with pension credit. This could leave many people who just miss the cut-off struggling. If means testing were applied to the state pension, it's likely that the threshold would not be generous, potentially impacting many who have saved modestly for retirement. Please keep watching and subscribe :-) The next video is a General Election special which you might find interesting.
@@Economese I shall look forward to your next video, and see and learn how the new government deals with this.
Since the pension ( mini ) crisis during the Truss premiership cost me one third of my pension fund ( age 60 ) I was planning to retire as soon as possible, but at least if they bring in means testing of the state pension, I'll now fall under the threshold. Thanks Liz!
Every cloud !!!
Same thing happened with my husband’s pension. It has since recovered partly but will never get back to where it was because of course at the age of 63 it’s now invested in ‘safe’ areas which are low risk but also low growth. I very much hope anyone living in Liz Truss’s constituency doesn’t vote her back in.
Hi Usercb, thank you for yor comment and for supporting the channel and sharing your story. If the pension was invested in the financial markets, they should have recovered since then as markets are at or close to their all-time highs. That said, I'm sorry to hear about the impact on your pension fund during the Truss premiership. It's a tough situation and I hope you now have the funds to retire fully. I doubt means testing will affect those clsoe to retirement, but more focused on the younger genreration. Please keep watching and subscribve ;-)
Hi Julie, thank you for your comment and for supporting the channel and sharing youyr story. Sometimes lower risk funds are invested in bonds and fixed interest which perform badly when interest rates rise like they have done. I covered this in the auto-enrolment video. Interest rates are currently on hold at 5.25%. I hope you get to enjoy a dignified retirement together. Please keep watching and subscribe ;-)
if its means tested then are we cutting all the pensions of the mp's to 0?
Hi Kaiser, thank you for the comment and for supporting the channel. Now there is something that we could all get behind and support. This has been echoed in the comments throughout so you might be on to something! Please kepe watching and subscribe ;-)
Pension is NOT a benefit , its a savings plan, paid in over 40 yrs of hard graft, the more you pay in, the more you deserve (avc’s) and paying IN less should entitle you to less . Stop rewarding stupidity and penalising those who think ahead and plan to support their retirement years themselves.
Wrong. Most people pay far less in national insurance than they take out in a pension. My last year of work I paid £2000 in NI, now I receive over £11000 state pension. On average if you live longer than 8 years after state pension age you get back more than you paid. It is not a 'savings plan' your NI contributions are not saved or invested. The state pension is unsustainable.
Technically, the pension was classed as a benefit as of 2014. Furthermore, people who first received a pension back in the 1950s had not paid in, so it was founded out of the working population, exactly the same as today. ( in many ways it is a giant Ponzi scheme) However, the irony that the more you earn, the more tax contributions you make, and most likely the more provisions you make, the less you might get.
The law has treated the State Pension as a Social Security Benefit since 1973 when the Social Security Act 1973 replaced the previous National Insurance Acts. Section 9(1)(h) of the 1973 Act states that the retirement pension is one of the benefits in the system.
The National Insurance Act 1965 also considered the retirement pension was a benefit. I haven't got access to the previous National Insurance Acts of 1946 and 1957. The 1946 Act introduced the contributory state pension for all.
Before that state pensions had only been available to some people and initially they were means-tested. The original "Old Age Pension" introduced in January 1909 was 5 shillings (£0.25) a week for a single person and 7 shillings and 6 pence (£0.375) for a married couple but only available to a person with an income of less than £21 a year.
Hi Buddie, thank you for your comment and for supporting the channel. I understand your perspective that the state pension feels like a savings plan after years of contributions into the system. However, it is legally classified as a benefit under the Social Security Contributions and Benefits Act 1992 and forms part of the social security system and needs to be claimed like any other benefit. The amount received is based on National Insurance contributions, reflecting your working years. Those who think ahead should not be penalised, but praised and applauded instead. Please keep watching and subscribe ;-)
Any form of means testing that doesn't take account of the value of an owned home is highly discriminatory to people who have the same amount of wealth but choose to rent and invest the capital instead. I'd rather have the flexibility renting and the liquidity of funds invested in a portfolio than have everything tied up on a home. How can retirees ever spend the equity in a home without selling it and moving to rental?
Hi Adm, thank you for the comment and for supporting the channel. You raise a valid point about the potential discrimination in means testing that excludes the value of owned homes. This approach can unfairly disadvantage those who choose to rent and invest their capital elsewhere.
One potential solution is to consider equity release schemes, which allow retirees to access the value of their home without selling it, providing financial flexibility. It's important that any means testing system accounts for different forms of wealth to ensure fairness. There should be an approach to pension means testing that recognises various asset forms and promotes equity for all retirees. Please keep watching and subscribe :-)
Good luck with finding somewhere to rent with current policies on immigration. UN Agenda 21 encouraged cultural diversification. Tony Blair supported it. Socialists love it as immigrants overwhelmingly vote left. It also makes it easier to control the populace.
@adm58: I’ve thought about your suggestion and can’t really agree with you. Most people who buy a home are paying a mortgage which is usually pretty much in line with what you will be paying in rent….the difference is your rent will never end therefore adding continually to your outgoings. Your investments may go down as well as up just like the price of houses so unless you’re lucky or a savvy investor I see no advantage or disadvantage there but historically house prices have always risen. It’s interesting that you have chosen that life style, one that certainly wouldn’t suit me ( I’m 69 now anyway) and you say you prefer the flexibility but the downside from my point of view is your landlord can give you two months notice at any time and you have to move on. That’s not for me and I do know the government is trying to stop that ( no fault eviction) but let’s be fair the owner of a property has to retain the right to repossess his house eventually and so you will always be in a position of having to move on sooner or later which again wouldn’t suit a lot of people I’m sure. I’d lay odds you’re probably single and have no children. Your view may change when your life changes. Anyway good luck, if it works for you it’s the right thing to do.
@@Kingcarparpeggio it does all depend on circumstances, both personal and things like interest rates, tenancy terms etc. I'm 65. If I could get a 20 year very low interest rate mortgage (like the ones available until recently, before the rate rises), I would buy. I can't get a mortgage though as I'm too old. So, I'd have to buy cash. Something I could do but then there is the problem of being unable to ever spend the funds tied up in the house (owning means dying rich). I'm also fortunate in that I have a secure tenancy with a good landlord. I'd be concerned about an insecure tenancy, especially in old age. There are many factors that influence choices; financial, legal and personal. I definitely think that if we had more secure tenancies available in the UK, downsizing to a well managed rental home and releasing capital to spend down would suit many retirees. It's a mystery to me why a market for this hasn't arisen (corporate landlords could do this well).
@@Kingcarparpeggio in fact, if I could, I'd now buy a good mobile home and live in that. Unfortunately, in the UK the law makes even that very difficult. Apart from living, or even sleeping, in a van other than on a designated site being illegal, having no fixed address is legally very inconvenient, to the point of being practically impossible.
Means testing is unfair as it penalises people who save and rewards people who piss their money up against a wall
Hi Jonathan, thank you for your commetn and for supporting the channel. Means testing is unfair to those who have been diligent savers throughout their lives. It does feel like a punishment for making responsible financial choices while others who didn't save are rewarded. The goal of means testing is often to ensure that limited resources are directed to those who need them most, but it’s clear that such policies need to be carefully designed to avoid discouraging saving and punishing those who have planned for their future. There have been even more articles in the press and social media last week including The Times. Please keep watching and subscribe :-)
I have subscribed. Thanks for your comment.
Really good content. Thank you.
I’m one of those people who thankfully are still living in serious ill health . I received my nursing pension early. I’m unable to work due to serious health issues. What I don’t understand is .. what happens if I don’t get my state pension.
Should I be saving into a private pension and is that even allowed as I have a nursing pension. Thanks in advance .
Hi Jayne, thank you for your comment and for supporting the channel and for sharing your story. I'm sorry to hear about your health issues. The state pension is meant to support everyone, especially those who can't work due to illness. You should still be eligible for your state pension based on your National Insurance contributions and it is unlikely to affect those close to retirement and those already retired. If you are in rceipt of state benefits you can also qualify for a qualifying year of NI towards your state pension entitlement. They would also need to communicate any changes with a LONG lead time of perhaps 10-15 years so we can all plan ahead. As for saving into a private pension, it is allowed even if you have a nursing pension. As a general rule you can contribute £2,880 per year and still get £720 tax relief added = total contribution of £3,600 per year if you can afford to do so. It could be a good way to supplement your income in retirement. Take care and I wish you all the best with your health. Please keep watching and subscribe :-)
@@Economese thank you very helpful
It would cost a fortune to means test the state pension. Every case would need to be looked at individually because everyone's circumstances are different. So lots more staff needed to run such a system. That is the advantage of a universal system, cheaper to run and maintain.
Hi, thank you for the comment and for supporting the channel. I disagree as there is legislation going through Parliament as we speak allowing banks and financial institutions more control and access to our bank accounts to assess levels of saving and income. With AI and technology in place, this could be done seamlessly in the future. A scary future and almost dystopian. Please keep watching and subscribe :-)
Absolutely correct. Means testing 12 millions plus pensioners every year will cost hundreds of millions if not billions. One of the main reasons only Australia do it . The argument AI will do everything & cost nothing is farcical. To illustrate just how expensive Computer programs are you only need to look at Track n Trace corona Virus .A cheap as chips 37 billion yes BILLION. Any computer programs would need to be updated constantly & costs of millions . Would a millionaire not just put his millions into a offshore bank with no UK Jurisdiction ?
@@Economese Track N Trace 37 Billion . Do you think advanced programs that track bank accounts are free ? Is the Ai going to Interview the pensioners the computer program deems needing investigation ? It will cost billions & you can be dam sure that the politicians involved in passing means testing will have their sticky fingers in the Pension companies jar or the Ai Designers jar . Why wouldn't a millionaire just put his money in an offshore bank out of UK Jurisdiction or investing in Crypto ?
The administrative costs of operating means-tested benefits is a significant fraction of the cost of providing the benefit. I recall seeing claims years ago that the cost was as much as 50% of the amount of benefit paid.
Retire early with private pensions, savings, investments then hit pension age with zero to claim full state pension.
Hi Gareth, thank you for your comment aqnd for supporting the channel. Retiring early with private pensions, savings, and investments is a smart strategy. By the time you reach pension age with minimal assets, you can claim the full state pension. This approach maximises your financial benefits while ensuring a secure retirement. I think the reality will be different though as they will need to communicate this change 10-15 years in advance so people can prepare ahead with confidence. Please keep watching and subscribve ;-)
Since when does a benefit give someone the right to pay for years that are missing from their contributions to gain a full pension. I was a single parent for many years. I went back to work. I owned my own house. I had no handouts from the state and I paid full contributions for the whole of my working life. I did not go out on the town enjoying myself and I did not go on any holidays. So do the people claiming other state benefits at this time get asked to pay for missing years of payments before they can receive the full benefit amount and do all the immigrants get benefits and pensions paid to them? We have many UK people living abroad still being paid a state pension. These pensioners had the yearly increase if they lived in the EU but the UK did not benefit from these pensions being spent in the UK. If pensioners did not move to an EU country then they did not get any increases after they moved to their new country. Have the increases stopped now we have left the EU or is that another blunder by the Government? This needs far more thought than the knee jerk reactions that is being used by a Government that has been totally useless at budgeting. Current and past governments have been disgraceful at using money wisely which means that they have squandered the taxes that we have paid them so now they want us to pay again. I met my husband and got married in 2007. We both had a property and we had both worked like mad to achieve this. We hit the recession and lost all our interest on our savings (money given to all those who lived it up and got into debt) so we bought a buy to let. We worked hard to do it up and have treated all our tenants in the way that we would wish to be treated. The government have now started to tax us to the hilt even though we have paid for all that we own with already taxed money. We did not sit and moan but set about getting round a problem. We are not rich by any means but now we feel as if the Government will not be happy until we are in poverty and claiming government assistance. We need a Government that has common sense both with money and with working out what is the best direction. It has to be remembered that Keir Starmer and Rishi Sunak are both extremely wealthy people who certainly do not know anything about poverty or the working class other than if they get too big for their boots take away their state pension and put them on real benefits.
Hi Lynne, thank you for the comment and summary of the current situation as well as supporting the channel. I can hear and understand your frustration. It's disheartening to see those who’ve worked hard and saved being penalised, while others can fill gaps in their contributions through benefits. Immigrants and benefit recipients should be held to the same high standards. The inconsistency in pension increases for UK pensioners abroad, especially post-Brexit, needs addressing. But that might be a long wait unfortunately. Overall management by successive governments has led to unfair taxation on those who saved responsibly. We need leaders who truly understand and support the broader society and wise use of taxpayer money - I won't hold my breath just yet. Please keep watching and subscribe ;-)
I had some bathrooms refitted by a plumber.
Noticed he kept telling me about all the Porsche cars he had owned. All bought new from the dealer I might add.
At some point in his weeks working here, it then became clear he didn’t have a pension.
When asked what he would do, he was quite clear about it. As he got older he said the government would have to look after him. House him, put him in a care home when needed and he fully believed he would become a problem of the state.
I was staggered.
This shows that the system is geared to specifically look after people like him at the expense of everyone else, whilst during his life he was swanning around in brand new exotic cars, with the intention of becoming a burden to tax paying society, most of which are NOT driving around in brand new Porsches.
Hi Gee, thank you for you comment and for supporitng the channel. It's amazing how some people can prioritise luxury over planning for the future. While it's true the system needs a balance to avoid enabling such behaviour, let's hope more people opt for a sensible approach to both their finances and their retirement planning. Meanwhile, maybe we should start a new trend: Pensions before Porsches! Our next video is about the 10 Rules of Money this weekend which you might find interesting. Please keep watching and subscribe :-)
It's the prudent propping up the profligate - been going on for years.
He knows the Government punish the Sensible & prudent so he is not having a pension as in all likelihood it will be stolen at retirement. The Government create this situation so you can't blame people for playing the Governments rules .
He is a fool and will absolutely regret that approach
@@GeeBeeMike I was a plumber unless you paid him cash in hand he paid a higher tax rate and judging his openess he wouldn't have got away with tax avoidance
My father always said that labour would like to take all your income and savings and give you back what they think you should have
Hi User, thank you again for supporting the channel. Our tax situation is the highest since 1948 so I wonder where it will end up from April 2025? That would be more aligned to communism. Communist states often implemented policies where the Government seized private property and assets. Individuals were then given what the state considered necessary for their subsistence or based on their perceived contribution to society. ur next video out this weekend is "Drawdown for Dummies: How Can I Get Money Out" which you might find interesting. Please keep watching and subscribe :-)
If its implemented, would just be another government cash grab on those those work hard and sacrifice throughout their lives. So likely to happen as that's the direction of travel.
Hi Phil, Thank you for the comment and for supporting the channel. It could be another way of "redistributing" wealth across society. The financial shortfall is a growing burden each year with more people retiring, living longer and fewer working people paying NI. Make sure you have enough private provision and be prepared. Please keep watching and subscribe :-)
@@Economesesorry but this does not make sense. When you have a public sector pension like me that has had the retirement date moved back effectively stealing thousands from me. Then the NI that I have contributed to everyone else’s pensions isn’t taken in to account. This would be a betrayal of the contract between government and the people. That betrayal is effectively treason.
I find it amazing that only 275,000 new claimants or new retirees are claiming their state pension per year. Considering that this year is the 1957 cohort when there were around 682,000 live births, it leaves we wondering where the other 400,000 have gone. I'd expect it to be less through early deaths, emigration and late retirees but not by 2/3.
Hi Nod, thank you for the comment and for supporting the channel. I appreciate the comment so we can all learn together and I was unaware of this cohort. The discrepancy you noted between the number of new state pension claimants and the birth cohort can be attributed to several factors. Many people retire later, emigrate, or pass away before reaching pension age. Additionally, some may not claim their pension immediately due to continued employment or other income sources.
In 2023, there were approximately 12.7 million people receiving the state pension, with the number of new claimants annually being lower due to these factors. This reflects a complex interplay of demographics and individual choices impacting pension statistics. I have taken an average of retirement statistics and erred on the cautious side of retiree increases. Please keep watching and subscribe :-)
I am totally opposed to StatePension means testing. We worked most of our lives for low wages and never had the opportunity to save much. When our kids left home we scrimped and saved to purchase our ex council property because we feared not being able to afford to pay rent. When we did retire we had our mortgage cleared. We realised that we would need to keep saving incase we needed new windows new roof or any other repairs. If they means test us will they take into consideration what our savings are for or will the punish us for being responsible by removing money from our State Pension which at the moment is £883.67 a month for me and £825.42 for my husband, our outgoings are £1484.00. We don’t go on holiday we don’t smoke or drink alcohol. We spend extra money on our garden and our children and great grandkids.Why can’t we just be left in peace to enjoy the little we have without the fear of being plunged into poverty yet again. I feel like we can’t move forward without the threat of being dragged backwards. After paying into the system for over 50 years I expect better than this. PS We are still paying full Council Tax😢
It’s an interesting point. Some might have died, some still working, but not that amount.
You pay that through your working life. That's theft.
Hi Say, thank you for your comment and for supporting the channel. If you've paid National Insurance (NI) contributions throughout your working life, means testing the state pension may feel like theft. These contributions are intended to secure your pension, not be subject to further eligibility criteria. Ensuring fairness and honouring these contributions is crucial to maintaining trust in the system. The Government should recognizs and reward those who have consistently contributed, rather than penalising them with means testing. Instead, you can make them retire later and later and later.......... Please keep watching and subscribe :-)
Of course this will come, no doubt about it,great idea we need bigger taxes 👍🇬🇧
Hi Stevem thank you for your comment and for supporting the channel. While higher taxes might seem like a straightforward solution, they can also place a significant burden on taxpayers and businesses. It's crucial to find a balance without stifling economic growth or penalising hard work. Dropping interest rates would be a positive start to give people more money in their pocket. Our taxation is the highest for 70 years so I am not sure how much extra we can give. Debt to GDP is 100% and the repayment costs are £140 billion per year. Our next video for this coming weekend is about Retirement Money: To spend or not to spend which you might find interesting. Please keep watching and subscribe :-)
What about Pensions already in payment?? Would any changes due to means testing be carried out retroactively?
Hi Strat, thank you for your comment and for supporting the channel. It's a valid concern. While changes like means testing could potentially impact future pensions, applying such changes retroactively to pensions already in payment would likely face significant legal and ethical challenges. We would need to see 10-15 years advance warning to prepare ahead and then there could be transitional protections to protect the most financially vulnerable. Please keep watching and subscribe :-) The next video is a General Election special which you might find interesting.
Looks like how unemployment benefits work in the UK not had a bean over the last 11 years.
It would put us into poverty I believe and be of benefit to those who haven't worked all their lives.
Hi Anthony, Thank you for the comment and for supporting the channel. I understand your concern. Means testing the state pension should be designed carefully to ensure it does not unfairly impact those who have worked hard all their lives. The goal is to create a fair and sustainable system that supports those in need without pushing others into poverty. It's essential to advocate for policies that protect and reward lifelong workers paying NI while ensuring a safety net for everyone. Please keep watching and subscribe :-)
Lowest state pension in Europe
Hi Carla, it is amongst the lowest in Europe for sure especially when compared to the average cost of living in this country when compared to others. By that I mean £11,502 per year goes a lot further elsewhere in Europe and it is not enough to meet the minimum lifestyle and expenditure in the UK - currently this is £14,400 per year for a single person. Our next video out this weekend is an Inflation Report: Too Little Too Late which you might find interesting. Please keep watching and subscribe :-)
Means testing should not be the way to go, but pensions will become unaffordable at some point. Perhaps the best way to go is to freeze the state pension at some point with plenty of notice. The auto enrolment needs decades to build up the funds to retire, so at some point pensions could be frozen and drop overtime in spending power. Anyone not having enough to live on when this happens could get benefits, which are obviously means tested.
This way there is a transition period over many many years until the spending power of the pension has deteriorated due to inflation.
If working & saving means no state pension . Would a lot of people not stick 2 fingers up & not work ?
@@stuartregan1627 maybe, but a solution needs to be found or the taxes the younger working people will have to increase to pay for the pensions. If pension costs double it will be the young workers that already cannot get close to buying a house that will be paying for the pensions. Pensions will become unaffordable at some point, I simply suggested a transition state rather than simply making pensions suddenly becoming means tested as older people have already planned their retirement.
@@JamesKerr-z4o Yeah I agree . But encouraging people to work & save less will make GDP worse not better . Under the Madness of means testing , people who work hard & save get a reduced pension, if they work really really hard they get no state pension at all.
Is the implementation of means testing not economic insanity ?
@@stuartregan7219if I know I’m getting means tested if I reach a certain threshold then my motivation to reach the certain threshold is gone.
Taxation seems the only fairer option to wealthy pensioners getting state pensions.
Hi UserX, thank you for the comment and for supporting the channel. Freezing the state pension with advance notice is a pragmatic approach. It allows auto-enrolment to build retirement funds over time. As the pension’s spending power gradually reduces, means-tested benefits can support those in need, ensuring a smooth transition and encouraging long-term saving. For example, when you get to 35 years NI, you don't pay any more NI for the state pension - so you pay less NI allowing to reinvest this additional money elsewhere. Please keep watching and subscribe :-)
I am 53 I’ve worked since I was 16 full time never been out of work - However, the way my life went getting divorced twice et cetera I’ve got a mortgage until I’m 70 and I’m not planning to retire until I’m 73 as long as I’m healthy enough. I’m hoping at that point I would’ve built up enough wealth to be able to retire enjoy rest of left of my life. I’ll be rather upset if my state pension is means tested, but nothing would surprise me in the UK at the moment 😢
Hi Ian, thank you for yor comment and for supporting the channel and for sharing yor story. Your situation is understandable, and it's clear you've worked hard to build your future. Many share your concerns about potential changes to the state pension. Let's hope that any changes will take into account the efforts of those like you who have diligently planned and sacrificed for their retirement and can be healthy enough to enjoy a dignified retirement. Keep in contact and let me know how you get on. Please keep watching and subscribe :-) Our next video is a General Election special which you might find interesting.
The state pension was always considered an entitlement up until 2016 when it was first referred to as a benefit in legislation, so all entitlement built up prior to that date would have to be paid non means tested irrespective of any future legislation. The government has not said anything about any plans for means testing of the state pension, so this is pure speculation. If they wanted to bring this in it could only be applied to future accruals and they would have to give at least 10 years notice as people have already made retirement plans based on current legislation. It would also be political suicide for any party to even suggest such a thing, so i dont think it will happen in the forseeable future. The cost of funding the UK state pension is actually quite small in comparison to many other countries.
Lowest pension in the western world but is unsustainable were told . Completely ridiculous
Hi Darren, thank you for your comemnt and for supporting the channel. The state pension was defiend as a benefit under the Social Security Contributions and Benefits Act 1992. It's true that the state pension changed in 2016 but the Old State Pension benefits were carried forward to no-one was worse off as a result of the changes. Whilst a means tested pension is not curent policy, the senior Labour consultant who has recently floated the idea of means-testing the state pension is Sir Edward Troup. He is a former senior executive at HM Revenue and Customs (HMRC), has been advising the Labour Party, particularly Chancellor Rachel Reeves, so how much longer before this could be addressed? I agree that 10-15 years advance warning would need to be provided so we can plan ahead. Measn testing would likely apply at the point of retirement when assessing income from all sources and assets and may not afect future accrual - unless we got the option to opt out of the state pension and could invest the savings elesewhere? You're correct that the cost of the UK state pension is approximately £125 billion per year, which accounts for about 4.7% of the UK's GDP. This is low when compared to Spain, France, Germany and Italy. But with falling birth rates, the system is failing in slow motion. Our next video released this coming weekend is about the Bank of England decision to lower interest rates "Too Little Too Late" Please keep watching and subscribe ;-)
They've got access to pensioners bank accounts and are reducing NI with the aim of getting rid of it completely so they can start to means test the state pension. They already refer to it as a benefit.
Hi Chrysalis, Thank you for the comment and for supporting the channel. While changes can be concerning, the aim should be a fair and sustainable pension system. There is legislation currently going through Parliament allowing more scrutiny on out bank accounts for assessing benefits and yes, the state pension is legally a benefit and part of the social security system. Please keep watching and subscribe ;-)
No they don't. They ask for your bank details to pay your pension in.
@@mark.e.pand you think they aren't going to snoop on your financial wealth - ffs wake up !
its not not a benefit its a right !!!!!!!!!!!!!!!!
@@Economese The legislation you mention was dropped when Parliament was dissolved before the forthcoming General Election.
buy gold and silver for your retirement.
A part of the CBDC is blockchain technology. EVERYTHING anyone owns will need to be tokenised (placed onto the blockchain) in order to prove that you own it. If it isn't tokenised you cannot sell it. This is the "you will own nothing..." part of this dastardly plan.
Hi Puja, thank you for yor comment and for supporting the channel. Make sure you have a diversified global portfolio across countries, companies and sectors, low cost and liquid as well as having gold and silver as alternatives. Please keep watching and subscribe ;-)
Labour will add mean tested pensions. Stick with conservatives or reform.
Hi Ab, politics and economics are intertwined for sure. Whatever the political colour, changes will be needed. Make sure you have a retirement plan and importantly a "Plan B" just in case. Please keep watching and subscribe :-)
Many people want means testing .With small pensions , firm and State , they've nothing to lose , and may well gain .
I have work all my life for pension so I would like it
Hi Sandra, thank you for your comment and for supporting the channel. Any changes to the state pension are unlikely to affect those of us who have worked all our life. My fear is that the younger generations may not have the same financial support in retirement. As there are fewer workers and we are living longer, maybe the Government will make changes so the state pension is more sustainable? Please keep watching and subscribe ;-)
If Starmer had declared this to be the truth, he would never have got his feet under the table.
Hi IB, thank you for your comemnt and for supporting the channel. Political leaders often face significant challenges in balancing transparency with the practicalities of election campaigning - and as a result telling the truth. If Keir Starmer or any other leader were to propose substantial changes to the state pension system, it would indeed be crucial for them to communicate these plans clearly to ensure we could plan ahead so i would expect 10-15 years notice. Let's see if the Pensions Minister Emma Reynolds can solve the problem. Our latest video released over the weekend is about Banking Big Brother and the increased surveillance on our bank accounts which you might find interesting. Please keep watching and subscribe :-)
Why would the Australian be used as a template, their system doesnt even look remotely similar to ours. They changed the basis of theirs in the 70's if i recall.
It sounds very much like scaremongering on your part, so its a bit disingenuous to suggest only a part of how the Australian system works, and how this "may" be applied to the UK system.
He's not scaremongering. Every other week there's a story in the media about the affordability of the state pension Do you think it's a coincidence that means testing story's appear regularly. It's not , it's called kite flying. Work too much & no state pension, live on benefits or save nothing then full pension. Gen Z know it ain't worth working & gaining wealth . Auto enrollment is a trojan horse to steal your pension.
Hi Grey, Thank you for the comment and supporting the channel. Australia’s pension system indeed differs from the UK’s, but it offers valuable insights. The UK financial services sector draws inspiration from Australia's successful superannuation scheme used as part of our current auto-enrolment pension clearly amended for our demographics, law, businesses and economy. Means testing can be part of a broader strategy to ensure fairness and sustainability and reducing Government borrowing to support the deficit. By learning from Australia, we can innovate and improve our own system to benefit all retirees, but it will be a brave decision. I think it might be disingenuous to believe that the current system can continue indefinitely without change? Please keep watching and subscribe :-)
Hi Stuart, politicians may only whisper it for sake of saying the awkward part out loud - it is getting too expensive to provide with more retirees, living longer, inflation + rises and fewer workers to pay NI. It's understandable to feel concerned, but auto-enrolment is designed to secure our future. While means testing stories can be worrying, they're part of exploring sustainable solutions. Focusing on saving and investing through auto-enrolment ensures a more comfortable retirement. Let's try to work towards a system that rewards hard work and savings for everyone. Please keep watching and subscribe :-)