Thanks to those of you who are pointing out that not everyone receives the same amount of state pension if you were previously on the old state pension. This is correct. My opening statement refers to the 35 years NIC needed for the new state pension - previously it was 30 years. The amount you received varied as there was a 2 tier system that explain in another video link => th-cam.com/video/YYi0vB1agn4/w-d-xo.html
You have dealt with this well as it a complicated topic! It may encourage more salary sacrifice, VCT models and other tax avoidance schemes for the wealthy
@@davidg9057 Not always. Contracted out for 4 - 5 years, accrued full state pension at around 49. Remember, you got NI credits 16-18 whilst in school. Forecast in 2016 had starter amount, including SP2, twenty odd years of contributions, less element for contracting out.
I have two pensions. I would much rather have had a Roth 401k throughout my working lifetime. $500/month invested from 25 - 65 at 9% is $2.3mil. I hate my job but can't leave because of I won't get my state pension. What do you think about doing a 70/30 stocks bond ratio?
I would avoid the index funds, mutual funds, or specific stocks for the time being. 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows signs of recovery
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
Generally speaking, a good number of people discredit the effectiveness of financial advisor in planning for retirement, For over the past 5years, I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $1million in gains… might not be a lot but retirement doesn’t seem so farfetched anymore.
She goes by ‘’Melissa Terri Swayne’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
The problem I have with this is the people who have saved and gone without to make provision are penalised. The people who have not, get the reward. That's never right.
The real problem is too many people in full time work not getting payed enough and the cost of living crisis. So there are loads of people who don't have enough money to save for their retirement, even with good money budgeting, skrimking. It's not the fault of the unemployed, you shouldn't listen to the tories and right wing media bull. And also according to our tory government unemployment is very low. Also most people on benefits are now working, we are just subsidising the businesses that they work for. We need to increase the minimum wage to a proper living wage and inforce it properly
Aye it’s also not right that the government are constantly moving the retirement age , all that’s doing is robbing us out of our so called benefit !! Benefit Even that makes it sound like your a cadger , the pensions in this country should be inline with the E.U then we might stand a chance of have a decent living, as for taxing pensions........disgusting!
@@fredatlas4396 No, that is totally the wrong thing to do. It's the minimum wage that has got the UK into this mess. High minimum wage has fed inflation to the point everything is expensive because unskilled workers in your supermarket, amazon picking packing jobs now earn £25,500 a year minimum. The has fed through to prices, in a doom loop. People do sit on benefits all their lives scrounging off the taxpayers. To earn what they do in benefits they would have to take a job paying 32k a year, so of course they have happy to sit on their asses, apart from the afternoons when they are in Spoons getting pissed and smoking tabs, watching Sky TV full movie package - then claiming they are can't afford to feed their kids
@@SimonDeBelleme1 yes, I thought as much. But they'd search your purchase history - even if it's cash ones. Plus, you'll be watched and they'd raid your home or follow you.
@@greigjduncanif I had another option knowing that the state pension was to end I would have saved more or in fact not paid as much NI and taxes. But what defines wealthy pensioners.
@@greigjduncan Perhaps that's what needs to change over future years. Perhaps 10% of current NI needs to be put in peoples pension pot and 90% goes towards current pensioners and over 50 ~ 100 years have a sliding scale to change this from 10 - 90% ratio to 80 -20% ratio so over time more of what you pay in is paid out and again over time pensioners are less reliant on the state. Hopefully the 20% contributions would fund those in society that fall through the gaps due to illness or whatever. Just a thought!
It's simple - I've paid national insurance from having a job from the age of 16 with the assurance that I would benefit from that when I retire. Having done that I expect to receive a state pension when I retire. That was the deal we were sold and the government needs to honour it.
I agree, despite legislation defining it as a benefit it is also a social contract that people who pay in all their working lives will be able to get it back at retirement age.
Yes I get the full pension having worked 51 years , Left school at 15 , Never long enough out of work to bother with trying to get any social security or dole money, always taught to to look after myself , Built my own house at 25 years old , 4 bed, 2 bathrooms on a 350 square meter plot. I worked 7 days a week to do this to give my family a decent home, was a bricklayer, now retired, 68 years old, My wife 69 looked after my daughters children for all the years she was working to give them a chance to better themselves and then when it came to retirement she was denied a full pension, yet lazy Bar-stewards who never worked a day in their lives, get a full pension!
You should not compare yourself to others. Your luck was your own but try to do your life from a wheelchair or position of weakness. Hardships are all around and they are made worse by governments who have no morals.
@@dasdasdatics420 Well said. I bought my own house for £1,300 at the age of 20 and was badly injured in a road accident a few days before my 21st birthday, my own work history being sketchy thereafter. I live with long term cervical myelopathy but looked after my old ma for 25 years, She's 101 now and in full time care, having refused to come home to me from hospital, saying that I 'wouldn't have any kind of a life'. The holier-than-thou, I've always been a grafter bricklayer above can go p1$$ up a rope, to use a quaint but very apt expression. Then again, perhaps all his talent is in his hands. It certainly isn't between his ears.
Like you i can relate fully to what your saying I’m also on a full state pension with a small private pension and I’m still paying tax on them,which leaves me with £920 state And £225 private total income being £1,145.00 monthly taxes are still penalising low income people like myself, the tax system only favours the rich? No one should be paying tax on the first £20,000 of ones income, only excluding the first £12,550. Is just another insult to the low paid,and you wonder why so many people can’t pay their rent and household bills,And I’m talking about the many on lower incomes than mine,it’s an utter disgrace from a government that doesn’t care and never has 🤔 enjoy stay safe 😎🇬🇧👍
The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $250k since then.
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this wonderful advice. I simply run a google check on her name, discovered her website, and wrote to her outlining my financial market objectives. I hope she gets back to me soon. Gratitude once again
Thank you. Just what I needed to watch. My hubby and I are directors of our farm business and own property, plus small pensions. I am nearly 52, hubby is 55. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing. Consider financial planning
I completely agree. I'm 60 years old, recently retired, and have relatively little retirement money compared to the value of my trading portfolio over the previous three years. I also have no debt and roughly 1.2 million dollars in other retirement accounts. Actually, the investment advisors may only be neglected rather than rejected. You only need to investigate them to locate a reliable one.
Nice theory. That's not what's going to happen. The PR start with sob stories of impoverished elderly and their tiny pension next to a 'millionaire' pensioner drinking champagne with theirs The point will be made that this is 'unfair' and so called wealthy elderly don't need the pension and the money should be redirected. Before you realize it, pensions will be means tested - starting indeed with elderly with say 2 million in savings. Once established the bar will drop. and drop and drop. Your pension that worked for will be removed because it's 'not fair'.
@@stumac869 I'm currently putting as much as I can into my private pension, if I reach pension age and it's means tested then I may as well have peed that money up against the wall. It doesn't take a genius to guess which party would be the most likely to means test the state pension and penalise those who have taken the grown up decision to provide for themselves. I made the decision early this year to take my tax free cash, as I thought that option is likely to be something that the next government will abolish.
@@kevlark If you have paid zero contributions like my brother in law he now gets pension credits which is nearly £50 more than I get after 50 years contributions, oh yes and unlike me he pays no council tax or rent 😊
The working has to tell the government to get off our back! Life's tough, get a job. HMRC stop grifting from my sweat and toil? They give/do nothing, but take 20% for doing it? Not legitimate anymore. We pay tax voluntarily. It is not ratified in law. Which is why every April it ends. They then have to apply for a new financial settlement? Allegedly? Never expected to get nothing but a pittance, I'll managed and crap! Not fit for purpose. So. They can shove it. I will provide for myself. Cannot rely on the dosey beggers in parliament? They are useless air stealers! Keep all your money to yourself. Tell the state to sling it's dirty grifting hook! Nowt but thieves and liars!😮
Remember it was Labour who killed off final salary pensions for the working class in 1997 with Blair and Browns tax raid on dividends. Raised £100b in tax,But-apart from working class pensions being destroyed for ever-what exactly have we got to show for it ? A Labour party over run with sheltered middle class "left wing" elites does more damage than the Tories. Go back to the 50's-70's no Labour government would have betrayed the working class as this generation of trust fund socialists and posh prigs have.
Along with most other comments on here, i would be against means testing the state pension. I worked ridiculously long hours, lived frugally so i could put money in a pension, never a high earner. People next door could have done the same but chose to go on long haul holidays, replace their car regularly, upgrade their kitchen. It cant be right to penalise savers by subsidising spendthrifts
Exactly..spend your life pissing your money up the wall and collect a state pension...work hard and live modestly, providing for your own retirement and then get penalised because the government says you're well off.
It seems to me our government don't like good hard working people to do any good for them selfs ..bunch of w..Kers if you've paid it you should get it...its strange you've worked hard all your life to achieve something in life but then because of this we are getting mugged we give up our house to pay for it this is diabolical disgrace..f..k our government...
@@kw8757Exactly. It should look at income/inheritance received over lifetime vs retained assets and those who've earned modestly yet provided for their own retirement shouldn't be penalised.
You’re right, and that’s exactly what the unfairness is of inheritance tax as well. The UK creeps closer & closer to communism. One day you’ll “own nothing & be happy”.
In the 1990s I sold pensions on the strength that the tax free lump sum would pay off most if not all of the mortgage and leave the investor with a pension for life. Most were over a 40 year term plus, I was not alone.
The approach of selling pensions with the promise that a tax-free lump sum would pay off mortgages and provide a lifelong pension was common in the 1990s. However, many factors can affect the outcome, including changes in the housing market and interest rates. It's crucial for investors to seek personalized advice and consider diversified financial strategies to ensure long-term financial stability.
it's vital for investors to seek personalized advice and adopt diversified financial strategies. Working with a knowledgeable financial advisor is crucial for achieving long-term financial stability and freedom
@@hasede-lg9hj I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've experimented with a few over the past years, but I've stuck with Annette Marie Holt for about three years now, and her performance has been consistently impressive. She's quite known in her field, look her up.
Sadly not paid for it is ponzi system, nothing was ever put aside, today's wokrkers pay for us today but sadly the worker pensioner ratio is falling, it is now 5 to 1, but will fall to 2 to 1 by 2050 due to falling birthrate. That is basically un affordable!!!!
@@philippayne4951 We then have to pay more taxes since it would no longer be tax revenue to the government (£17 billion approx.) and therefore could not cover the years we have to wait till enough funds are built up to pay pensions. There would have been very low returns on annuities since 2008 due to low interest rates, there would have been no triple lock since it would have been all market driven. Since 2008 annuities rates used for pensions have been very low meaning poor returns until quite recently were rates due to high interest rates are nearly at an all time high, but it will not last. Planning for the government would be hard since they would have to make up shortfalls when markets behave poorly or like private pensioners we would just have to take market value at the time of retirement. So since 2008 you would have a lot less then you would have had with the state pension triple lock. With wars and market situations effecting your annuity when you retire it would make it hard to plan. It might in the long run cost the government or us more and finally we have to trust companies to run our pensions. Their record does not look good great: rail ,water industry, power industry to name a few.
In the 70’s we paid taxes and we had NHS dental care; public care homes for the elderly; a good affordable transport system; people retired at 60 for women and 65 for men; affordable housing, either private or rental, free higher education; legal aid, and I could go on and on. We have lost so much, yet we pay much more tax and get a lot less. I would guess that most people look forward to retirement, particularly those whose jobs offer little in stimulation and are heavy work. To suggest that the state pension is means tested is an insult to the public they are supposed to represent. Especially in the light of the money wasted on a flu virus and these terrible wars. It’s anti human. It is absolutely clear that the government do not want our children to inherit.
You make the 1970s sound like a socialist Nirvana. You know that the free adult education only went to less than 10% of the population, and they were mostly very wealthy people, right ?
We also had free, or minimum charge, youth clubs to keep kids off the streets & free street loos & Bobbies walked the Beat & were respected, or feared & energy was affordable. Can I also mention the cost nowadays of all the police, clean up etc of all these street protests. Those protesting don’t realise the ultimate costs. Protest yes but pick & choose those that will benefit the U.K. people & don’t cause them further costs & disruption. All I see are lots of people farting in the wind, mainly about what is happening abroad!
@@timg1246 According to the Social History Society, the Adult Education in the 1970s were dominated by men as women couldn’t avail themselves of that free education, “not because they didn’t want it but owing to the unceasing round of household duties & the care of children”. Something the government forgot when failing the WASPI women!
@@Dana-ml7sy Thank you for this as now I can add these things onto my list. I will ask Sonia Poulton on TNT Radio if she will make this question of the day. What have we lost since the 70’s? My list is very long.
Perhaps for starters we shud look at the golden pensions paid to ministers and civil servants. Funded at great cost by the tax payer. Then look to reducing the state pension.
£80b this year and £45b last year is being spent to cover the BoE's losses on gilts they've decided to sell rather than jus hold to maturity. There is so much money in this country, the problem is the way it's being wasted by government
If you have worked all your working life and paid in full, of course you should receive the full amount, it is your pension money!!!! As an example an asylum seeker gets £49.18 per week which is not far of pension allowance , free acomodation, free NHS …. That’s where our pension money is going?
The state pension is £170 (basic old state pension) to £221 (new state pension) a week, the figures are not even close. If we processed asylum seekers quickly, then they could start working far sooner.
@@AgileSnowWeasel what? £55 a week as opposed to 49 a week is not that big and if you can be bothered to take into account some of us have paid in for 50 years, asylum seekers are being ‘given’ far too much.
Sorry but it’s not your pension money, your money payed for pensioners when you were young,the people working now pay for the pensioners of today.its amazing how many people don’t understand that.
On average people only collect around 8 years pension before they die. A working person, works for around 45 years before retirement. in that time they have paid into the country through national insurance, income tax, sales tax, VAT etc. In other words they have contributed to society. The least the country can do is let them enjoy their last remaining years in peace and comfort.
I received my pension at 60 and am now 78 and in excellent health. No wonder they want to decrease the lifespan of the working populace by various means, as there is mo money in the coffers.
@@stephfoxwell4620 I live in Scotland and am male, life expectancy for me is 76. so maybe 10 years, but then again I am a pessimist and by the time I reach 74 the average age will have dropped.
There was a lawyer talking about this on UK TV the other day and he said that there would be a case for this to happen. And it was put forward that taking into account 35 years of National Insurance Contributions, the medium sum would be around £85,000. Obviously not a large sum when compared to a lifetime state pension
This is a very slippery road to go down . Why should people who plan for their retirement be penalised in order to give those who haven’t more money . State pension is slightly less than a 3rd of what I earn now . With my other pensions I won’t even achieve what I earn now . I would probably fail the means test because my home is paid for . Which again seems unfair as I e planned this to make my retirement comfortable not rich . It aggravates me that I have paid so much in taxes throughout my life and I have saved only to be shafted by government civil servants and MPS who will all have final salary pensions and large bonus payments . Just saying
@@davidlindley6992 Great point , why dont you hear theres no money for public sector pensions ? 2.6 Trillion but the big problem is state pensions . Next level spindoctoring . were being played like a fiddle by civil servants & politicians who want to make pensions means tested so they can cash in though sleazy connections to the pension providers . It would have to be compulsory for obvious reasons , then these rip off companies could charge what they like in fees & charges K ching K ching K ching . As in life , all about the money with politicians.
@@davidlindley6992No it isn't all true. It is speculative. Your own home would probably not be considered an asset for something like this. MPs and civil servant pensions are not the state pension. If means testing was introduced, this pension incomes would be counted as income so may disqualify them if, and it is a big if, the government ever went down that route.
Now I’ve had more time to think about it, this video is a bit of scare mongering so people sign up to her (Dianne) guidance products. All this video has done is make a lot of people, angry, frustrated and anxious about something that may never happen!
Slippery slope. Yes indeed. If you are rich no state pension, no NHS, no point in trying to be independent. Richer people who contribute the most via tax and NICs to these services will then get no benefit from them.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Sophia Maurine Lanting turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Thank you for the information. I conducted my own research on google and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call.
I already am means tested. Having a works pension that combined with the state pension I have to pay income tax because the two combined take me over the tax free threshhold. You can't beat the system, happy days as usual. DOB 1956.
@@Jaymark-gk4li It sure does suck especially as we paid tax on it when we paid into it. Now we have to pay tax again. I hope that you are the same as me and have many happy memories of the days that were far better than the crap we now live in. Thanks for your reply and Take Care.👍
That is not remotely means testing. Obviously if you are rich and get a lot in various pensions it will be over the income tax qualifying thresholds. Quite rightly. Means testing means seeing your other incomes and assets so deciding you do ne need any or all of the State hand out pension give out in the first place!
Ha and think of all the anti-protest laws the Tories brought in. You will be like the climate activists unable to say why you protested or offer any moral reason, just you did such and such damage the reason is immaterial. To be fair no one is saying they will do that, not even a rumour. But the tories made the first move when in the 2024 finance bill they sneaked a law to be able too see all bank accounts of those recieving benefits, part of which was to see fraud, but why all those pensioners bank accounts just recieving the state pension??? The bill did not pass thanks to the election. But at present we have 5 workers to 1 pensioner, but by 2050 it will be 2 wokers to 1 with falling birthrate so the pension as it stands will have to change, but not as usual for the most self generation the baby boomers like me who had it all!! But no governement wants to pick the electoral bill, but in the end a cross party consensus may have to be taken. The Government Actuary's Department estimated the UK State Pension fund could run dry by 2033!! And who has been increasing the pension age = Tories!! Who robbed the WASPI women =Tories, by 2050 retirement age will be 71= tory ploicy
I’m a high earner, have contributed for over 35 years and I fear the next government Labour, will take the state pension away by applying means tests. I’d prefer the government to give me my contributions back. I’ll invest myself. At least I can trust my own decisions, unlike our political parties. It’s not a benefit, it’s a payment made to a future payback by the state. If you paid into a pension and the pension provider decided not to give you your investment back, it would be a criminal offence.
You are confusing state pensions with work place pensions. If means testing were introduced, it would seem fairly likwly that MPs would indeed lose out on state pension.
@@tonydalton6756I would like to say you are wrong. But Labour are talking about exemptions for doctors and civil servants when it comes to the Life Time Allowance for pensions.
Theres a lot of pple who worked over 36 years have died b4 collecting their pension That is never taken into account The government gets to keep that no questions asked!!!
The government factors that into their budget. This is one reason to invest in a private defined contribution pension, that has great inheritance tax advantages, especially if you die before 75.
Yes... everyone that has paid in should get the same amount regardless of savings and windfalls. The problem is... with savings etc... you have no idea how long they will last... especially with politicians mismanagement of the economy. Stop trying to claw back money from pensions to compensate for over spending on Woke issues and Immigrants . Leave pensions exactly as they are... stop frittering away tax payers money on virtual signalling... foreign aid... migrants... and we wouldnt need this conversation... The main problem is a population of nearly 70 million of which only approx 10% Work and pay tax... stop importing poverty.
I have saved all my life. I have never had to take any form of benefits not even child allowance. I see my state pension as a deferred payment irrespective of my savings
The problem with means testing is unexpected care costs can easily eat into your entire life's savings within a few years. Care in the UK is astronomical in comparison to the level you receive. 4000 per month to be left in a corner and fed canned soup.
Britain isn't France. There'd be no protest or anything (Tories made effective protest illegal anyway - you cheered when it was Just Stop Oil, but now it's your retirement...) and everyone would just get poorer and the economy would shrink with the reduced spending.
@@AgileSnowWeasel Agree, that is why we are in decline, 15 years of austerity, which is just a wealth transfer to the rich who avoid tax. Thats why Labour will get in now it is no longer left wing, so that they can carry on with the wealth transfers, and make private sector health care stronger.
He would not miss it because banks and corporations make sure that after he leaves office, he is hired for "consulting" or other fake jobs at an exorbitant rate. So he is likely rolling in millions from the above. Basically back door🚪 bribery for doing their bidding while in power. The latest being this means testing...
I believe everybody should get the same amount of state pension for years they have been contributed regardless of personal wealth, people can be savers or spenders, savers should not be penalised. For this to change we need a very long timescale and clear choices not to contribute to NI and make own arrangements with those contributions.
How do you pay for it? In 1950 people only lived to 68.93yrs on average, now it's 81.92yrs. And those over 65 now number over 10 million, increasing to 16 million by 2060. The burden on taxpayers for this, the £3trn national debt, and £5trn unfunded public sector workplace pensions would be so huge there'd be no point in working.
@@BenzkneesWe retired at age 66 and our Pension as far as we are concerned has already been paid for via National Insurance. Our contributions paid for our parents and our children’s contributions paid for ours. What the Government should have done was to invest enough to cover all Pensions and to continue investing every year.This way there would have been no shortfall at all. Another point my husband worked down the coal mines and paid into his mine workers pension.His pension was non taxable at that time because tax through earnings had already been paid it was also non means tested because miners put their lives at risk going down the mines to dig out coal to keep Britain warm. Then the Government took over running the mine workers pension.They immediately took a 50% split of the surplus changed it to a means tested and taxable pension and the government then enjoyed the 50% surplus without ever paying a penny towards that Pension. If they can invest the Mine workers money and make billions from it why can’t they do the same to provide a State Pension. We have saved hard all our lives and done without a lot to buy our home with money put away incase of big repairs like new roof rewiring etc. We also see our home as a gift that will be shared with our children, because we couldn’t give them a lot of material things when they were growing up. Let’s stop the huge pensions given to Prime Ministers like Liz Truss who only last a few days. Then there’s the House of Lords with £300 a day for turning up and huge Pensions Then the Royal Family. No we at the bottom have had enough let’s start at the Top first and stop grudging hard working people what they have rightly earned. I am disgusted at this plan it punishes the wrong people and discourages good people from saving and doing the right things.
@@Benzknees I've seen more recent statistics which are saying since about 2010 the average life expectancy dor the poor and less well off is actually falling now. I would say this could be down to increasing poverty levels and massive funding cuts for NHS since 2010. Also I think the rich and higher payed should pay some more in tax. I'm sure their is enough money just our government has squandered it in dodgy covid contracts, mismanagement incompetence and to their friends and tory donors. Plus our corporation tax is now the lowest in all the G7 nations and most likely a lot more besides. And it hasn't boosted our economy or benefitted the rest of us in anyway, those businesses have just put the extra money into their pockets, ceo's, directors . On the contrary, the experts are saying if we increased corporation tax it would encourage UK businesses to invest more back into the businesses, thus increasing growth and efficiency etc. Because those businesses would rather put the money back into the business when the choice is either give the money to the government in more tax or reinvest it and this get tax relief on the money reinvested
@@arabellasommers9343 - As those NI contributions by then current taxpayers have always paid for then current pensioners' State Pensions, the pensions would also have to be paid back.
You are spot on , they can only raise the entitlement age so high. Next step is means testing savings and assets. Punch to the gut for middle earners who have saved ☹️
I have a private pension which I paid 14% of my income into for 30 years. Why should I forfeit any of my state pension as I also paid 40 years of National Insurance. I had no option to opt out and expect to receive my full state pension when the time comes.
Indeed, I can only see this working if the entry date is 30 to 40 years in the future to give people time to adapt their contributions and make use of whatever NI saving or similar the government sweetens the deal by.
@@AgileSnowWeasel You've made a good point there, Graham. Those who've lived and worked within the old system shouldn't be penalised by any changes made by the new system whilst they're still alive.
My husband’s pension is less again this year because of the tax we pay, and mine is taxed as well. All the ‘triple lock’ does for us is increase our tax burden. We don’t have enough money to be worry free but just too much to get help.
Im lucky to be a higher rate taxpayer. Bear in mind, if you’re a high earner, your employer pays 13.8% in addition to the 10-12% (now 8%) This means high earners can pay in 100s of thousands along with the employer’s contribution which is technically part of your building up of contributions. To be told, that because you did well and probably saved and paid into a private pension, that you’re not eligible for SP, would be criminal.
I have already paid my 35 years in, as I started paying when I left school in the mid 80's. I will still have to wait another 12 years to receive it. I am also a high tax payer, and I have always used the SP calculation as part of my retirement plans - to means test it against my other incomes would be a poor move by any government - but I see it as a potential anti -working person thing a new Labour government will do - oddly.
National insurance was always just another form of tax used to pay for current expenditure. With public debt at £3trn, and another £5trn in unfunded promises to public sector workers for their occupational pensions, we can expect both higher taxes & NI, lower or no state pensions, and more charges for using the NHS in future. Basically the country has been living well beyond its means for many decades, and the bill is coming due.
@@Benzknees The problem is national insurance is actually a flawed concept, as it has never covered the cost of the things we say it is for. A fairly skilled economist will tell you, that if you hold the tax threshold levels were they are for say two years, and reduce NI to say 1% - so we keep a record of who has paid - then the government will be raking more money than every before in tax, without NI. In the years after that you gradually lift the tax tiers by 2% a year or by inflation if it is less than 2%. That way maintaining fiscal drag, and increasing the tax pouring in . Psychologically you will notice less - as you have been given some money back in lower NI rates.
@@DS-cf1zc - Well yes, that's what they've done in part. But there comes a limit when taxpayers get fed up of being dragged into the higher rate tax band, even tho' their real wages haven't increased. I was one such, and gave up work early as a result. Scale that up across the country and you potentially have a big problem. Already the top 10% of taxpayers pay 60% of income taxes, up from 35% in 1978, while 56% of taxpayers get more in benefits than they pay in taxes. The tax base is scarily dependent on fewer & fewer people.
@@Benzknees I get it - I passed into the 40% bracket in 2008, and ever since I have paid 50-51% on every new pound I earn - purely down to NI. The current reductions mean I am down to around 47-48% on every new pound for the first time in 16 years. Hence why we need to somehow, restructure taxation. Increasing NI, and doing nothing with PAYE would mean for every new pound I make, I could end up paying up to and over 55%.
If any government wants to reduce or completely take away a persons pension then they should be made to repay all the contributions said person has paid I’m during their working life , let’s see how keen they are then !
A softly spoken voice keeps everyone calm. Don't rock the boat and keep legitimising their complete power and control over you by voting, but you'll keep dreaming that some party leader or someone out there cares about you. Wake Up..
The problem is worse because NIC pension money is not ‘ringfenced’ by government. In other words it gets ‘raided’ by government for other things… If you pay in, you should get out… end of
How would you do that when the state pension scheme was set up as a pyramid scheme? The original beneficiaries were paid by then current taxpayers & it's continued like that ever since.
@@timg1246 - A unsustainable scheme where large numbers of new members of workers are recruited with a promise of the same future rewards as a small number of pensioners get. But as those expecting s reward increase & new members tail off, the scheme fails. That's the very definition of a pyramid scheme!
I’m just under four years away from my state pension. I have a decent company pension that I paid into for nearly 40 years. I paid forty four years national insurance contributions, but I’m expecting something to change from the next government. Who knows how long they’ll live , the state pension should not be means tested otherwise what’s the point in working and saving hard all your life.
I would take my 25% tax free out of that works pension have a smaller pension to have with your state pension do it early so the pension has its tax on pay as you earn it works better than getting a tax letter Once a year to pay talk to someone who can give you good advice
In 2009 like many people I was made redundant when the company I worked for shut down - I signed on, as many did - then I found out because I was intelligent enough to put away money in savings, my benefits were "means tested" as well - I got £300 a month - while I should be grateful, I cannot help but be annoyed at the fact I was unemployed for over a year, as many were as the economy had just tanked, My outgoings were £800 (private rent not mortgage, bills food etc etc, I even SORN'd my car) so in the 15 months before I managed to get a job I used over £7500 of my savings - JUST BECAUSE I SAVED MONEY when so many did not and got double or more free from the govt.
@@nickcastings1568- banks have to notify HMRC of any accounts. Do what certain sections of the population ('travellers' etc) do and buy gold. Untraceable and easily hidden.
As far as I am concerned my contract for my pension started when I started work in 1983…. It’s already been changed so I have to work until 67… I have full stamp and still paying National Insurance…. This is nothing short of criminal if it happens
To some extent, it already is.....if anyone is below the 35-year threshold. However, what irks me is the fact that those who've never bothered to work are getting the full state pension. Those who've lived on the dole their whole lives should not get the state pension.
@@EIRE55 What’s worse is that you don’t have to have paid anything in to qualify for Pension Credit, you qualify by not qualifying for the state pension and it is a much more generous golden ticket.
@@denisescally7090 True. I was just about to switch off and go to bed, so I'll try to think of anything other than this.😵💫Stay safe and well, wherever you are.😉
@@christines5430 Agreed. It's like awarding failing pupils top grades, like arresting people who have not committed an offence, whilst releasing convicted criminals early and giving them benefits. They are essentially rewarding negative behaviour.
Few members of my immediate family lived long enough to receive the State Pension. Blue collar working class people tend to not live that long. As for !myself I started receiving the State Pension at 66 two years ago. The pension is 100% of my income. I'm very sorry that I managed to survive so long. But maybe not for much longer, seeing I'm undergoing tests for colorectal cancer. So all the more to keep foreign freeloaders in the style to which they have become accustomed.
How do you get to 66 without ever contributing to a private pension during your life? It's been mandatory for the last decade as well. I hope the tests come back clear for you.
@GrahamBriggs Thanks for your concern re my health issues. It's difficult taking out a private pension scheme when you earn barely enough to feed, clothe, and keep a roof over your head.
Currently only 40% pensioners receive a full pension. WASPI women had up to 6 years stolen from them. The uptake of pension credit is quite low. Anyone who has a work pension should know it’s taxed!
WASPI women have their upper middle class feminist sisters to blame, and EU equality regulatioms, for providing the Government with the pretext for raising the State Pension age for women.
@@wiganer9912 I withdrew a small amount initially from one small pension but I’m still taxed because they add it to another pension, which is slightly larger but nothing to write home about! The tax is not much but it the principal. I would have been better off having no extra work pensions & live off the state pension & pension credit which is more! I don’t qualify for pension credit as I have savings, from doing without & deferring gratification. Bitter sweet really!
Hi Dianne , just found your channel and liked and subscribed . My partner and I are still amazed at the recent general election result as to how many people moved from their natural/historical party allegiance because of the simplistic word 'Change' used by the Labour party . Did so many people really do this without questioning WHAT changes this might mean under Labour ????? And here we are , just a few days after their win , already discussing means tested state pensions ! Oh , that's one of the changes Labour meant was it . Yes , I'm afraid so but you can't withdraw vote now , idiots ! The Tories stood by the triple lock promise and certainly over the years we pensioners all applauded them for it . I won't even touch on the immigration problem and what Labour will do with that . Enough already . I enjoyed your video and appreciate many of the points raised . It is clear that any Government has a problem with the increasing ageing population and the burden that puts on revenue from tax & NI . If means testing was ever to be brought in any Government would have to set the savings/assets/income thresholds quite high so as not to penalise the average person or they would have a very short term of office , and might I say even huge protests and rebellions on the streets. Look forward to future videos , well presented.
Well, if the government does go ahead with any means testing for pensions….then I would argue we need means testing for how much we pay for everything else through life…..food, petrol….you name it!!! Both my parents didn’t make it to the age I need to be to get my state pension…..so I’m not expecting anything even though I’ve paid my 35 years…..
If it does go ahead, Im not sure if that wont be some international precedent? Im yet to hear of a country that means tests their pensions. Also if that idea ever gets entertained, this needs to be with a fair amount of advance notice on how the system will work so that we can adjust.
For a benefit that is contributed to by all workers, there should be no question of then, later, means-testing whether a worker 'deserves' the pension they have contributed towards. As we know life expectancy has increased since the original rules were established. This means that delaying when the pension is receivable could be reasonable. Unfortunately successive governments have used the income from National Insurance for current projects, rather than investing it for future liabilities, such as the State Pension.. Governments have also squandered the 'windfall' of North Sea oil profits, which might have been invested in a sovereign wealth fund such as the Norwegians did. The bottom line is that a wealthy democracy, such as the UK, should make sure that it has the ability to look after its elderly, treat its sick and prevent poverty. The distortions of the economy by the extremely wealthy and misguided politicians has meant that this simple set of goals are very difficult to attain.
The means testing of the UK state pension is only 7 to 10 years away. That is why The new legislation allowing government to check the bank accounts of anyone receiving a state pension, now classed as a benefit, not an earned right has been implemented. Once up and running the state pension will depend upon property owned, cash assets and private pensionable assets. You'll be audited without your knowledge and the state pension to be received, age 70+, will be tiered or possibly even denied. With the continued massive influx of foreigners, 10 million since 2005, resources will have to be made available for state pensions which will not be available for all. Once everyone knows what procedures and standards are set many will stop saving, stop paying into pensions and even stop working. This will play into government, EU WEF. WHO and UN hands. The less assets people hold in the form of cash, stocks and shares and property the easier it will be to implement Central Bank Digital Currency. Thus controlling the economy's of each country and their populace much more closely. That will just be the beginning......
Thank you, Jim, that's the best comment on here (yes, I've read every one of them). May I ask why you've said "The means testing of the UK state pension is only 7 to 10 years away"? How do you know it won't be sooner than that? Just curious, but would love to hear back from you. Stay safe and well, wherever you are.
I have worked like a trooper my whole life ( now 61 ) and already have more than 35 years of contributions, plus a net asset base of about £1.8m, so I am pretty well set for retirement..................My brother, who is a lazy bone idle waster has sweet fan Anne to show for his work life ( or lack thereof ) & will still get the same State Pension as me, PLUS a truck load of other benefits. If it becomes means-tested I will spit feathers.
Yes indeed, Max. I have a brother who's the same as yours, and who I was continually handing out to during my working life. Fortunately, I eventually had the sense to turn my back on him shortly before I retired. I haven't seen or heard from him for many years, but I lost nothing. Take care and stay safe.
Work doesn't pay now . Why would anybody work if the reward for working & creating wealth is the loss of the state pension ? The Government would target hard working people like you who bothered to get off their arse & created weath . Means testing is a Communist, s wet dream . Weath creators get their money redistributed to the bone idle.
@@jacquihigley1007 For sure he will be up to his neck in benefits once he retires. He'll get nowt from me though, or my Mother whom he hasn't spoken to for 9 years. She is leaving her whole estate to me so I will be even wealthier - make note though his two boys are my main beneficiaries as I have no kids, so they will get everything I have. They will get nothing from their father. If you gave my brother £250K he would spunk it up the wall in a couple of years...........on women - he's done it before.
I started life with nothing and I have most of it left, this is a lyric from a song written by a guy named sea sick Steve. It reminds me of what life feels like when you retire.
When I last spoke to the tax office they reminded me that money also goes to the NHS from the NICs. In addition the fact that the NIC was reduced 4% is worrying of what it is to come next. Now they will have an argument that NIC does not cover all pensions and NHS anymore so they will think of another way to cut our state pension
Hi. I am now 71. That was all very interesting facts. Wow. I remember when I worked for myself I had to make sure I payed mine in each month. It was a different amount (smaller). But I made it up. So as to make sure I had the full amount. When I became an pensioner. I received that letter saying I had done all that I had needed to do to become and have a pension. And would I need it now or later. Well at the time. Boy, did I need it. Things were happening in my life. So I am happy now. Thank you for the info. 😊
So once you reach the age of 67 years old and have paid 35 years NIC but unfortunately you die at 68 years old The government never tell you that side of the NIC story ?
I started work in 1977 after Uni as an Articled Clerk. We didn´t earn much so paid minimal NIC. Having qualified as a CA I went to work in the middle east, this lasted on and off for 20 or so years. I had 10 years contributions when I returned for good. Paid class 3 NIC for 5 missed years and did a small amount of small self employed work and paid Class 2 NIC, This got me to 27 years when the time needed was 30 years. They then changed the time to 35 years, I could not add any more years but I was not complaining. My first year of pension mostly covered my total contribution into the NIC.
A means tested pension would drive the narrative of, what's the point in putting money away for the future, you'll just lose all your state pension benefits.
Not a case of if changes occur in the future but when. You don't have to work to qualify for an income in old age, glad you mentioned pension credit and other benefits that accompany it, they will give you that income. We are sitting on a financial time bomb and it's about to go off. It's also high time the politicians told the truth.
Due to the very high rate of excess deaths since 2021 which doesn't seem to be slowing, the main thing people need to be concentrating on is what is causing the deaths and then avoiding it.
I have a decent final salary pension although thanks to Gordon Brown's stealth taxes it is a third less than planned and I had to work 10 years longer and pay more. I have paid more in NI and will still get the standard State Pension. It is also taxed at 40 per cent. So it's already means tested.
A very interesting and informative video 😊I'm 55 years old and this is now something I think about alot! Great video and you do have a easy to listen to sweet voice 😊😊
Read this!!! When my dad died, i kept his bank acc open. I used this for saving into when i was working, keeping my own bank acc low. Retired eight years ago at 68 and still have both accounts, savings in my dad's and pension going into mine. Paid tax & N.I. since i was 15,,,no intention of paying any more 👍
As said below if the goverment looked after people that were born in this country and not wasted billions on the ones that see the Uk as treasure island funding the full state pension would not be an issue. One thing that will hit a lot of us already receiving the full sate pension will be income tax. At the moment the personal income tax allowance remains frozen at £12,570 this means that when the pension increases beyond this figure we will start to pay tax on it. The future does not look good for existing pensioners and worse for those facing a much longer time before they will receive it.
The state pension is consequence of paying in National Insurance. The more a person earned, the more a person paid in to the national pension pot. Everyone might get the same amount, but not everyone paid in the same amount. Some paid in a lot more.
Don't forget about those who's pensions were contracted out like the Civil Service and the National Health Service etc, I was fortunate enough to check my pension some years ago and found that there was a short fall which I then have had to make up show my years of contribution is around 46 years of paying into the scheme.
The state pension is already means tested in as much as it is kept low so that those with other income (company pensions etc.) can manage, and those with no other income have to claim benefits in order to survive.
If you have savings over £6,000 you are presumed to receive a certain income, over £16,000 you are not eligible to receive any means tested benefits. The amount of income the DWP assumes you receive from savings is far greater than any interest received by orders of magnitude. So basically, if you have savings blow it all before reaching retirement age.
I endured low pay and gruelling work as a nurse in the NHS , knowing that at least I would get a decent pension . Because of opting out I don’t get the full amount of state pension and I pay tax . Those who didn’t pay into the pension claim pension credits and all sorts of other benefits . They are better off than me . I should have spent my money .
Low pay and gruelling work as a nurse in the NHS? You do realise that the pay scale, shift allowances, sick pay and pension scheme for NHS nurses is a matter of public record. Of course, depends on how you class low pay and gruelling work.
@@danielcalderwood6674 I am now retired , pay when I was working was not what it is now . . Yes , we had sick pay , and I appreciated the pension terms , but I rarely worked in any unit which had its full complement of staff . . If you don’t think the work is hard, ask yourself why the NHS has such a huge number of vacancies and always has had .
I have been paying in to this pension from the ages of 17 to almost 70. It is not a benifit it is my money the government has been playing fast and lose with. The calculations she gives do not account for the massive devaluation of the pound over your lifetime.
I am 70 years old next month and your comment about the state pension being a pay as you go system is spot on. However, that is not how it was sold to us. As a child, we were told that there is a pot of money with our name on it and, as you work, your N. I. contributions is built up over the years in readiness for your old age. That was clearly a lie.
Your video is excellent and covers all possibilities, thank you. I did know most of it and it has reaffirmed my view of an ever changing entitlement. 👍
Means testing should be standard for anyone who is making a career solely from receiving state benefits without doing a day's work. To apply a means test to those who have worked for a pension is nothing but an outrage.
Spain pay pensioners £2,700 a month so it must be doable to pay what our government pay at the moment. We are 15th in Europe so much for GREAT Britain. Luxembourg is top paying £5,200 a month.
It’s definitely a benefit for Canadians married to a British person and therefore qualify for state pension, many of whom have never set set foot in our country. Get your head round that one.
This sounds like preparing for the universal income which has been talked about. Boris also spoke of how there will be a maximum number of CBDC's which can be held.
On the question of should we all get the same state pension. I believe if we all pay our required rate of NI contributions over the required number of years then we should all get the same back in state pension regardless of our personal financial means.
I’ve already paid 37 years N.I. & I’ve still got another 12 years to go. I wonder how much the pot would be worth after 49 years had it been put into a private pension?
Thanks for a great video. It's all too easy to assume there won't be changes to the state pension "contract". But as it becomes less affordable for governments there could be more than just small tweaks to it.
It will only become less affordable if this or any respective governments keep funding these illegals arriving every day.using our money to house them and feed them plus giving them some pocket money.🤔
Voluntary NI contributions is an interesting idea. This would allow people to invest the money they otherwise would have paid in NI contributions and hence be able to increase their pension quite considerably. I am all for it.
We saved up our working life to be reasonably well off when we retire and let’s be honest we do not know how long we will live. My father died at 70 so only had 5 years retirement and my mum was 82, I have liver cancer at 67 I may have 3 years left at best, so now I have the worry of not having sufficient funds to live anyway, what a freaking life. The pension is not a benefit it’s something I have paid into for 43 years, if I had a choice I would have put a proportion of my NI into a pension fund.
It is already "means tested" in a way, as a pensioner faces a pension progressive (income) tax. So if in receipt of a higher pension as they receive their state pension - they may be paying 40%, 42% or even 45% tax (means tested) on their additional income
Hi I live in Australia AND have been paying type 2 NI for my UK State Pension because I won’t qualify for the Oz Pension as I have been prudent and put enough into my Super (or hope to) that I won’t qualify. However, I’ll probably retire at 60 and then spend down my Super between then an 70 until a point when I get some State Pension. Finally, I do know many middle income people who do not over invest in their Super because they want the Pension. I guess you need to educate yourself about the options and make your choices! It’s certainly more complicated here!
Between the video and your comment it really sounds like the Australian system is punitive and has the opposite effect that is intended, of making people save for the future.
State Pension isn’t the highest it’s ever been in relation to earnings. The change to The New State Pension dramatically reduced State Pension by removing the “Earnings Related” element which was paid on top of the basic amount. For most people that reduced overall State Pension by around 40%. Previously, State Pension equated to around 50% of the average salary, now it’s down to around 30%.
My dad worked until he was 76, he started paying at the age of 14 but sadly died before his 80th birthday. He never received any care from the state when he was in palliative care due to none being available,but as a family it was our honour to care for him. How fair is that on a working man.
So, basically those who spend, spend, spend during their life will reap the reward in their pension years; and those who went without, but saved will be penalised in their pension years... That's not at all fair. In fact, that would be shockingly unfair. I think that everyone should get the same State Pension, and then they can decide what to do with it - be they poor, comfortably off or very rich.
I am getting very tired of being promised one thing by the govt and then when I come to claim it either I’m told I have to wait longer for it or it is not going to be worth anything. All my working life I planned for my retirement and that included the State Pension. Not only have I had to wait 6 yrs longer for the State Pension, something that was suddenly sprung on me but I now face having it snatched away entirely. Revolution beckons!
Thanks to those of you who are pointing out that not everyone receives the same amount of state pension if you were previously on the old state pension. This is correct.
My opening statement refers to the 35 years NIC needed for the new state pension - previously it was 30 years. The amount you received varied as there was a 2 tier system that explain in another video link => th-cam.com/video/YYi0vB1agn4/w-d-xo.html
It’s still not the same. If you have been contracted out you will get less
What about those already receiving the State Pension. I am an 85 year old male. Would I be means tested? Many thanks
You pay in for 35 Years , if you work for 50 Years , that is 15 more Years You pay in , and get nothing back .
You have dealt with this well as it a complicated topic! It may encourage more salary sacrifice, VCT models and other tax avoidance schemes for the wealthy
@@davidg9057 Not always. Contracted out for 4 - 5 years, accrued full state pension at around 49. Remember, you got NI credits 16-18 whilst in school.
Forecast in 2016 had starter amount, including SP2, twenty odd years of contributions, less element for contracting out.
I have two pensions. I would much rather have had a Roth 401k throughout my working lifetime. $500/month invested from 25 - 65 at 9% is $2.3mil. I hate my job but can't leave because of I won't get my state pension. What do you think about doing a 70/30 stocks bond ratio?
I would avoid the index funds, mutual funds, or specific stocks for the time being. 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows signs of recovery
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
Generally speaking, a good number of people discredit the effectiveness of financial advisor in planning for retirement, For over the past 5years, I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $1million in gains… might not be a lot but retirement doesn’t seem so farfetched anymore.
Could you possibly recommend a CFA you've consulted with?
She goes by ‘’Melissa Terri Swayne’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did.
The problem I have with this is the people who have saved and gone without to make provision are penalised. The people who have not, get the reward. That's never right.
It’s always the way. There’s people sitting on their backsides doing nothing getting more than people doing a full time job
The real problem is too many people in full time work not getting payed enough and the cost of living crisis. So there are loads of people who don't have enough money to save for their retirement, even with good money budgeting, skrimking. It's not the fault of the unemployed, you shouldn't listen to the tories and right wing media bull. And also according to our tory government unemployment is very low. Also most people on benefits are now working, we are just subsidising the businesses that they work for. We need to increase the minimum wage to a proper living wage and inforce it properly
@@fredatlas4396 not sure what that has with the government stealing peoples state pension
Aye it’s also not right that the government are constantly moving the retirement age , all that’s doing is robbing us out of our so called benefit !! Benefit Even that makes it sound like your a cadger , the pensions in this country should be inline with the E.U then we might stand a chance of have a decent living, as for taxing pensions........disgusting!
@@fredatlas4396 No, that is totally the wrong thing to do. It's the minimum wage that has got the UK into this mess. High minimum wage has fed inflation to the point everything is expensive because unskilled workers in your supermarket, amazon picking packing jobs now earn £25,500 a year minimum. The has fed through to prices, in a doom loop. People do sit on benefits all their lives scrounging off the taxpayers. To earn what they do in benefits they would have to take a job paying 32k a year, so of course they have happy to sit on their asses, apart from the afternoons when they are in Spoons getting pissed and smoking tabs, watching Sky TV full movie package - then claiming they are can't afford to feed their kids
If state pension becomes means tested. There is no point saving. Just piss it all up the walls. Then you will get a state pension.
No. Buy gold.
@@SimonDeBelleme1but then they'd try taking your gold off you. Or they'd say, "you've got gold, so you'll get less pension".
@@ForkCandle123 I didn't say anything about declaring it. What you do is buy physical gold, hide it and develop selective amnesia about it.
@@SimonDeBelleme1 yes, I thought as much. But they'd search your purchase history - even if it's cash ones. Plus, you'll be watched and they'd raid your home or follow you.
I haven't factored the state pension into our retirement plan's 56 now quitting work at 60 all being well.
It’s not a benefit . We contribute to it . We earned it!
What they really mean is that they have changed the rules so that they can take your pension off of you and give it to somebody else!
I get sick and tired of these idiots calling it a benefit. They talk out their backside.
Today’s NI and taxes pay for today’s pensions…. There is no pot of money. That’s a private pension!
@@greigjduncanif I had another option knowing that the state pension was to end I would have saved more or in fact not paid as much NI and taxes. But what defines wealthy pensioners.
@@greigjduncan Perhaps that's what needs to change over future years. Perhaps 10% of current NI needs to be put in peoples pension pot and 90% goes towards current pensioners and over 50 ~ 100 years have a sliding scale to change this from 10 - 90% ratio to 80 -20% ratio so over time more of what you pay in is paid out and again over time pensioners are less reliant on the state. Hopefully the 20% contributions would fund those in society that fall through the gaps due to illness or whatever. Just a thought!
It's simple - I've paid national insurance from having a job from the age of 16 with the assurance that I would benefit from that when I retire. Having done that I expect to receive a state pension when I retire. That was the deal we were sold and the government needs to honour it.
You were sold a bill 📜 of goods, kid.
@@mtrest4👍
The word "honour" is not recognised by the governments we have today.
Hi i have payed national insurance for 49 years so i think i have payed for my state pension and i am paying
Tax on my small private pension lol
I agree, despite legislation defining it as a benefit it is also a social contract that people who pay in all their working lives will be able to get it back at retirement age.
God bless this country. Once again, you pay more and more in but get less and less out.
You know they haven't changed it, right ?
The ones at the top don t pay their share....go after those
@@timg1246yet
more needy people are arriving daily. Dont be selfish.
Yes I get the full pension having worked 51 years , Left school at 15 , Never long enough out of work to bother with trying to get any social security or dole money, always taught to to look after myself , Built my own house at 25 years old , 4 bed, 2 bathrooms on a 350 square meter plot. I worked 7 days a week to do this to give my family a decent home, was a bricklayer, now retired, 68 years old, My wife 69 looked after my daughters children for all the years she was working to give them a chance to better themselves and then when it came to retirement she was denied a full pension, yet lazy Bar-stewards who never worked a day in their lives, get a full pension!
Totally agree 👍
This is totally ridiculous and wrong......and they say they want to make work pay
?????
You should not compare yourself to others.
Your luck was your own but try to do your life from a wheelchair or position of weakness.
Hardships are all around and they are made worse by governments who have no morals.
@@dasdasdatics420 Well said. I bought my own house for £1,300 at the age of 20 and was badly injured in a road accident a few days before my 21st birthday, my own work history being sketchy thereafter. I live with long term cervical myelopathy but looked after my old ma for 25 years, She's 101 now and in full time care, having refused to come home to me from hospital, saying that I 'wouldn't have any kind of a life'. The holier-than-thou, I've always been a grafter bricklayer above can go p1$$ up a rope, to use a quaint but very apt expression. Then again, perhaps all his talent is in his hands. It certainly isn't between his ears.
Like you i can relate fully to what your saying I’m also on a full state pension with a small private pension and I’m still paying tax on them,which leaves me with £920 state And £225 private total income being £1,145.00 monthly taxes are still penalising low income people like myself, the tax system only favours the rich? No one should be paying tax on the first £20,000 of ones income, only excluding the first £12,550. Is just another insult to the low paid,and you wonder why so many people can’t pay their rent and household bills,And I’m talking about the many on lower incomes than mine,it’s an utter disgrace from a government that doesn’t care and never has 🤔 enjoy stay safe 😎🇬🇧👍
The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.
True, It has never been easier to understand how to build your money after retirement than it is right now with the inflation, when you may study and experience a completely variegated market passively by employing a successful portfolio-advisor. The impacts of the U.S. dollar's gain or fall on investments, in my opinion, are complex.
Even if you’re not skilled, it is still possible to hire one. I was a project manager and my personal portfolio of approximately $850k of my retirement pension took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $250k since then.
I’m in dire need of guidance so i can salvage my portfolio due to the massive dips and come up with better strategies. How can I reach this advisor?
‘’Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
Thank you for this wonderful advice. I simply run a google check on her name, discovered her website, and wrote to her outlining my financial market objectives. I hope she gets back to me soon. Gratitude once again
Millions of pensioners in this country Mr Starmer. We will not forget
He is a criminal embezeling money thats not a benefit its a pension(Hands off)
There may well be fewer pensioners around after the coming winter, if it is a cold one!
pensions are not benefits is the big point
No we bloody will not, that is for sure.
@@mrvgranfieldYou try telling it to some of these dum dum, they got the dum idea it's a benefit.
Thank you. Just what I needed to watch. My hubby and I are directors of our farm business and own property, plus small pensions. I am nearly 52, hubby is 55. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.
It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.
Consider financial planning
I completely agree. I'm 60 years old, recently retired, and have relatively little retirement money compared to the value of my trading portfolio over the previous three years. I also have no debt and roughly 1.2 million dollars in other retirement accounts. Actually, the investment advisors may only be neglected rather than rejected. You only need to investigate them to locate a reliable one.
I will be happy getting assistance and glad to get the help of an advisor, who do you work with and how did you go about hiring them?
Her name is. '"Stacy Lynn Staples’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
thanks for saving me back and front of investigation , is stressful at my old age , checking her out and booking a call session at once
Yes, it doesn’t matter how wealthy you are you when you retire, you still worked for the pension
Nice theory. That's not what's going to happen. The PR start with sob stories of impoverished elderly and their tiny pension next to a 'millionaire' pensioner drinking champagne with theirs The point will be made that this is 'unfair' and so called wealthy elderly don't need the pension and the money should be redirected. Before you realize it, pensions will be means tested - starting indeed with elderly with say 2 million in savings. Once established the bar will drop. and drop and drop. Your pension that worked for will be removed because it's 'not fair'.
Exactly, and I would argue that the state pension should be based on the amount of NI a person has paid during their lifetime.
@@kevlarkit's a benefit so that'll never happen but could easily be means tested.
@@stumac869 I'm currently putting as much as I can into my private pension, if I reach pension age and it's means tested then I may as well have peed that money up against the wall.
It doesn't take a genius to guess which party would be the most likely to means test the state pension and penalise those who have taken the grown up decision to provide for themselves.
I made the decision early this year to take my tax free cash, as I thought that option is likely to be something that the next government will abolish.
@@kevlark If you have paid zero contributions like my brother in law he now gets pension credits which is nearly £50 more than I get after 50 years contributions, oh yes and unlike me he pays no council tax or rent 😊
The government has to stop penalising the working
The working has to tell the government to get off our back! Life's tough, get a job. HMRC stop grifting from my sweat and toil? They give/do nothing, but take 20% for doing it? Not legitimate anymore. We pay tax voluntarily. It is not ratified in law. Which is why every April it ends. They then have to apply for a new financial settlement? Allegedly? Never expected to get nothing but a pittance, I'll managed and crap! Not fit for purpose. So. They can shove it. I will provide for myself. Cannot rely on the dosey beggers in parliament? They are useless air stealers! Keep all your money to yourself. Tell the state to sling it's dirty grifting hook! Nowt but thieves and liars!😮
No it doesn't but it should🤝
And deporting the money drainers
It won't be means tested, she's click baiting !!! for money.
Remember it was Labour who killed off final salary pensions for the working class in 1997 with Blair and Browns tax raid on dividends. Raised £100b in tax,But-apart from working class pensions being destroyed for ever-what exactly have we got to show for it ? A Labour party over run with sheltered middle class "left wing" elites does more damage than the Tories. Go back to the 50's-70's no Labour government would have betrayed the working class as this generation of trust fund socialists and posh prigs have.
Along with most other comments on here, i would be against means testing the state pension. I worked ridiculously long hours, lived frugally so i could put money in a pension, never a high earner. People next door could have done the same but chose to go on long haul holidays, replace their car regularly, upgrade their kitchen. It cant be right to penalise savers by subsidising spendthrifts
Exactly..spend your life pissing your money up the wall and collect a state pension...work hard and live modestly, providing for your own retirement and then get penalised because the government says you're well off.
It seems to me our government don't like good hard working people to do any good for them selfs ..bunch of w..Kers if you've paid it you should get it...its strange you've worked hard all your life to achieve something in life but then because of this we are getting mugged we give up our house to pay for it this is diabolical disgrace..f..k our government...
@@kw8757Exactly. It should look at income/inheritance received over lifetime vs retained assets and those who've earned modestly yet provided for their own retirement shouldn't be penalised.
You’re right, and that’s exactly what the unfairness is of inheritance tax as well. The UK creeps closer & closer to communism. One day you’ll “own nothing & be happy”.
Of course it is not right but they are still going to take your pension. We live in a socialist society and the UK public are for it.
In the 1990s I sold pensions on the strength that the tax free lump sum would pay off most if not all of the mortgage and leave the investor with a pension for life. Most were over a 40 year term plus, I was not alone.
The approach of selling pensions with the promise that a tax-free lump sum would pay off mortgages and provide a lifelong pension was common in the 1990s. However, many factors can affect the outcome, including changes in the housing market and interest rates. It's crucial for investors to seek personalized advice and consider diversified financial strategies to ensure long-term financial stability.
it's vital for investors to seek personalized advice and adopt diversified financial strategies. Working with a knowledgeable financial advisor is crucial for achieving long-term financial stability and freedom
@@hasede-lg9hj I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I'm intrigued by this. I've searched for financial advisers online but it's kind of hard to get in touch with one. Okay if I ask you for a recommendation?
I've experimented with a few over the past years, but I've stuck with Annette Marie Holt for about three years now, and her performance has been consistently impressive. She's quite known in her field, look her up.
It is a pension and NOT a benefit. It has been paid for
Try telling that to some of these idiots.
Sadly not paid for it is ponzi system, nothing was ever put aside, today's wokrkers pay for us today but sadly the worker pensioner ratio is falling, it is now 5 to 1, but will fall to 2 to 1 by 2050 due to falling birthrate. That is basically un affordable!!!!
@@sarahjames505 All state pension money, should be given to the city, who can maximise it for the government, and get big returns for pensioners.
@@philippayne4951 We then have to pay more taxes since it would no longer be tax revenue to the government (£17 billion approx.) and therefore could not cover the years we have to wait till enough funds are built up to pay pensions. There would have been very low returns on annuities since 2008 due to low interest rates, there would have been no triple lock since it would have been all market driven. Since 2008 annuities rates used for pensions have been very low meaning poor returns until quite recently were rates due to high interest rates are nearly at an all time high, but it will not last. Planning for the government would be hard since they would have to make up shortfalls when markets behave poorly or like private pensioners we would just have to take market value at the time of retirement. So since 2008 you would have a lot less then you would have had with the state pension triple lock. With wars and market situations effecting your annuity when you retire it would make it hard to plan. It might in the long run cost the government or us more and finally we have to trust companies to run our pensions. Their record does not look good great: rail ,water industry, power industry to name a few.
In the 70’s we paid taxes and we had NHS dental care; public care homes for the elderly; a good affordable transport system; people retired at 60 for women and 65 for men; affordable housing, either private or rental, free higher education; legal aid, and I could go on and on. We have lost so much, yet we pay much more tax and get a lot less. I would guess that most people look forward to retirement, particularly those whose jobs offer little in stimulation and are heavy work. To suggest that the state pension is means tested is an insult to the public they are supposed to represent. Especially in the light of the money wasted on a flu virus and these terrible wars. It’s anti human. It is absolutely clear that the government do not want our children to inherit.
100%
You make the 1970s sound like a socialist Nirvana.
You know that the free adult education only went to less than 10% of the population, and they were mostly very wealthy people, right ?
We also had free, or minimum charge, youth clubs to keep kids off the streets & free street loos & Bobbies walked the Beat & were respected, or feared & energy was affordable.
Can I also mention the cost nowadays of all the police, clean up etc of all these street protests. Those protesting don’t realise the ultimate costs. Protest yes but pick & choose those that will benefit the U.K. people & don’t cause them further costs & disruption. All I see are lots of people farting in the wind, mainly about what is happening abroad!
@@timg1246 According to the Social History Society, the Adult Education in the 1970s were dominated by men as women couldn’t avail themselves of that free education, “not because they didn’t want it but owing to the unceasing round of household duties & the care of children”. Something the government forgot when failing the WASPI women!
@@Dana-ml7sy Thank you for this as now I can add these things onto my list. I will ask Sonia Poulton on TNT Radio if she will make this question of the day. What have we lost since the 70’s? My list is very long.
Perhaps for starters we shud look at the golden pensions paid to ministers and civil servants. Funded at great cost by the tax payer. Then look to reducing the state pension.
Absolutely. Most of our council tax goes on gold plated pensions
£80b this year and £45b last year is being spent to cover the BoE's losses on gilts they've decided to sell rather than jus hold to maturity.
There is so much money in this country, the problem is the way it's being wasted by government
2.6 Trillion .. yes Trillion but they try to tell us they cant afford the pitifull uk pension .
Very few defined benefit pensions ( so called gold plated ) in the private sector these days.
I Agree !
This lady also works for the Government and is on the Govt website.
...These Millionaires couldn't care less about the rest of us !
If you have worked all your working life and paid in full, of course you should receive the full amount, it is your pension money!!!!
As an example an asylum seeker gets £49.18 per week which is not far of pension allowance , free acomodation, free NHS …. That’s where our pension money is going?
The state pension is £170 (basic old state pension) to £221 (new state pension) a week, the figures are not even close. If we processed asylum seekers quickly, then they could start working far sooner.
@@AgileSnowWeasel what? £55 a week as opposed to 49 a week is not that big and if you can be bothered to take into account some of us have paid in for 50 years, asylum seekers are being ‘given’ far too much.
@@AgileSnowWeasel They are mostly unemployable and they will forever be a drain on our society. Fact.
Asylum seekers only have to work 5 years to receive a full State Pension, unlike Uk citizens that need 35yrs !!
Sorry but it’s not your pension money, your money payed for pensioners when you were young,the people working now pay for the pensioners of today.its amazing how many people don’t understand that.
On average people only collect around 8 years pension before they die. A working person, works for around 45 years before retirement. in that time they have paid into the country through national insurance, income tax, sales tax, VAT etc. In other words they have contributed to society. The least the country can do is let them enjoy their last remaining years in peace and comfort.
Well said
I received my pension at 60 and am now 78 and in excellent health. No wonder they want to decrease the lifespan of the working populace by various means, as there is mo money in the coffers.
@@Olaias1 No, they tried that with Covid.... how much money did they save as a result ..
No. Average life expectancy in the UK is 81. Pension age is 66.
So typically they draw it for fifteen years.
About £165,000.
@@stephfoxwell4620 I live in Scotland and am male, life expectancy for me is 76. so maybe 10 years, but then again I am a pessimist and by the time I reach 74 the average age will have dropped.
If that`s the case, all contributions made to state should be returned with interest.
I agree, Cf the McCloud pension judgement.
There was a lawyer talking about this on UK TV the other day and he said that there would be a case for this to happen. And it was put forward that taking into account 35 years of National Insurance Contributions, the medium sum would be around £85,000. Obviously not a large sum when compared to a lifetime state pension
Too right
This is a very slippery road to go down . Why should people who plan for their retirement be penalised in order to give those who haven’t more money . State pension is slightly less than a 3rd of what I earn now . With my other pensions I won’t even achieve what I earn now . I would probably fail the means test because my home is paid for . Which again seems unfair as I e planned this to make my retirement comfortable not rich . It aggravates me that I have paid so much in taxes throughout my life and I have saved only to be shafted by government civil servants and MPS who will all have final salary pensions and large bonus payments . Just saying
It's all true!!!! MP's and civil servants are guaranteed solid gold pensions.
@@davidlindley6992 Great point , why dont you hear theres no money for public sector pensions ? 2.6 Trillion but the big problem is state pensions . Next level spindoctoring . were being played like a fiddle by civil servants & politicians who want to make pensions means tested so they can cash in though sleazy connections to the pension providers .
It would have to be compulsory for obvious reasons , then these rip off companies could charge what they like in fees & charges K ching K ching K ching . As in life , all about the money with politicians.
@@davidlindley6992No it isn't all true. It is speculative. Your own home would probably not be considered an asset for something like this. MPs and civil servant pensions are not the state pension. If means testing was introduced, this pension incomes would be counted as income so may disqualify them if, and it is a big if, the government ever went down that route.
Now I’ve had more time to think about it, this video is a bit of scare mongering so people sign up to her (Dianne) guidance products. All this video has done is make a lot of people, angry, frustrated and anxious about something that may never happen!
Slippery slope. Yes indeed. If you are rich no state pension, no NHS, no point in trying to be independent. Richer people who contribute the most via tax and NICs to these services will then get no benefit from them.
I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.
Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
pls how can I reach this expert, I need someone to help me manage my portfolio
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Sophia Maurine Lanting turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Thank you for the information. I conducted my own research on google and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call.
I already am means tested. Having a works pension that combined with the state pension I have to pay income tax because the two combined take me over the tax free threshhold. You can't beat the system, happy days as usual. DOB 1956.
Exactly the same for me, also class of '56..I lose 2 weeks state pension each month in tax..hmmmm
@@Jaymark-gk4li It sure does suck especially as we paid tax on it when we paid into it. Now we have to pay tax again. I hope that you are the same as me and have many happy memories of the days that were far better than the crap we now live in. Thanks for your reply and Take Care.👍
@@rubberyowen1469 aye, and you mate
That is not remotely means testing.
Obviously if you are rich and get a lot in various pensions it will be over the income tax qualifying thresholds. Quite rightly.
Means testing means seeing your other incomes and assets so deciding you do ne need any or all of the State hand out pension give out in the first place!
@@nicholaspostlethwaite9554 hand out ?..did we not pay in ?
I can see trouble ahead for labour . Similar to the poll tax riots
People with gold plated pension make these "tough" decisions
Yup so can I.
@@Ofelas1fully agree . No money for pensions unless it's their own gold plated pension
@@petersmith5723 Big trouble. We ain't seen nothing yet. The budget will show them up.
Ha and think of all the anti-protest laws the Tories brought in. You will be like the climate activists unable to say why you protested or offer any moral reason, just you did such and such damage the reason is immaterial. To be fair no one is saying they will do that, not even a rumour. But the tories made the first move when in the 2024 finance bill they sneaked a law to be able too see all bank accounts of those recieving benefits, part of which was to see fraud, but why all those pensioners bank accounts just recieving the state pension??? The bill did not pass thanks to the election. But at present we have 5 workers to 1 pensioner, but by 2050 it will be 2 wokers to 1 with falling birthrate so the pension as it stands will have to change, but not as usual for the most self generation the baby boomers like me who had it all!! But no governement wants to pick the electoral bill, but in the end a cross party consensus may have to be taken. The Government Actuary's Department estimated the UK State Pension fund could run dry by 2033!! And who has been increasing the pension age = Tories!! Who robbed the WASPI women =Tories, by 2050 retirement age will be 71= tory ploicy
I’m a high earner, have contributed for over 35 years and I fear the next government Labour, will take the state pension away by applying means tests.
I’d prefer the government to give me my contributions back. I’ll invest myself. At least I can trust my own decisions, unlike our political parties.
It’s not a benefit, it’s a payment made to a future payback by the state. If you paid into a pension and the pension provider decided not to give you your investment back, it would be a criminal offence.
ARE they going to means test MP's and house of Lords too???
Doubt it!!
You are confusing state pensions with work place pensions. If means testing were introduced, it would seem fairly likwly that MPs would indeed lose out on state pension.
@@timg1246 They'll put an exemption into law don't worry.
@@tonydalton6756I would like to say you are wrong. But Labour are talking about exemptions for doctors and civil servants when it comes to the Life Time Allowance for pensions.
Theres a lot of pple who worked over 36 years have died b4 collecting their pension
That is never taken into account
The government gets to keep that no questions asked!!!
Excellent point
Of course it's taken into account. You think the government doesn't know some people die before retirement age?
Work and private pension providers rely on people dying before they retire. That's how they make their money.
Natiinal insurance is used to fund lots of things - not just pension. These numbers used here are meaningless
The government factors that into their budget. This is one reason to invest in a private defined contribution pension, that has great inheritance tax advantages, especially if you die before 75.
Yes... everyone that has paid in should get the same amount regardless of savings and windfalls.
The problem is... with savings etc... you have no idea how long they will last... especially with politicians mismanagement of the economy.
Stop trying to claw back money from pensions to compensate for over spending on Woke issues and Immigrants . Leave pensions exactly as they are... stop frittering away tax payers money on virtual signalling... foreign aid... migrants... and we wouldnt need this conversation... The main problem is a population of nearly 70 million of which only approx 10% Work and pay tax... stop importing poverty.
Well said !!
Here Here. Totally agree. Never truer word spoken
I Agree !
Only 10% work? I'd love to know your source for that assumption.
I know what he means…but totally incorrect data Boris!
I have saved all my life. I have never had to take any form of benefits not even child allowance. I see my state pension as a deferred payment irrespective of my savings
The problem with means testing is unexpected care costs can easily eat into your entire life's savings within a few years. Care in the UK is astronomical in comparison to the level you receive. 4000 per month to be left in a corner and fed canned soup.
Nearly 6 grand mate in Scotland
@@ewenwalker7740Scotch Broth and left in a corner then!
@@ewenwalker7740 Scotch broth and left in a corner then!
Abolish the state pension, and the government will face 30 million Guy Fawkes.
How come? Look at the crap the general public have taken over the last few years without batting an eyelid.
Britain isn't France. There'd be no protest or anything (Tories made effective protest illegal anyway - you cheered when it was Just Stop Oil, but now it's your retirement...) and everyone would just get poorer and the economy would shrink with the reduced spending.
People will just moan and keep voting these muppits in. There'll be no protests.
@@AgileSnowWeasel Agree, that is why we are in decline, 15 years of austerity, which is just a wealth transfer to the rich who avoid tax. Thats why Labour will get in now it is no longer left wing, so that they can carry on with the wealth transfers, and make private sector health care stronger.
Don't vote Labour if you want to keep your pension!
What about looking at the 100,000 a year an ex PM gets on top of their pension . plus a state pension
He would not miss it because banks and corporations make sure that after he leaves office, he is hired for "consulting" or other fake jobs at an exorbitant rate.
So he is likely rolling in millions from the above.
Basically back door🚪 bribery for doing their bidding while in power.
The latest being this means testing...
I believe everybody should get the same amount of state pension for years they have been contributed regardless of personal wealth, people can be savers or spenders, savers should not be penalised. For this to change we need a very long timescale and clear choices not to contribute to NI and make own arrangements with those contributions.
Agree! Why should we save if we are penalised?
How do you pay for it? In 1950 people only lived to 68.93yrs on average, now it's 81.92yrs. And those over 65 now number over 10 million, increasing to 16 million by 2060. The burden on taxpayers for this, the £3trn national debt, and £5trn unfunded public sector workplace pensions would be so huge there'd be no point in working.
@@BenzkneesWe retired at age 66 and our Pension as far as we are concerned has already been paid for via National Insurance. Our contributions paid for our parents and our children’s contributions paid for ours. What the Government should have done was to invest enough to cover all Pensions and to continue investing every year.This way there would have been no shortfall at all. Another point my husband worked down the coal mines and paid into his mine workers pension.His pension was non taxable at that time because tax through earnings had already been paid it was also non means tested because miners put their lives at risk going down the mines to dig out coal to keep Britain warm. Then the Government took over running the mine workers pension.They immediately took a 50% split of the surplus changed it to a means tested and taxable pension and the government then enjoyed the 50% surplus without ever paying a penny towards that Pension. If they can invest the Mine workers money and make billions from it why can’t they do the same to provide a State Pension. We have saved hard all our lives and done without a lot to buy our home with money put away incase of big repairs like new roof rewiring etc. We also see our home as a gift that will be shared with our children, because we couldn’t give them a lot of material things when they were growing up. Let’s stop the huge pensions given to Prime Ministers like Liz Truss who only last a few days. Then there’s the House of Lords with £300 a day for turning up and huge Pensions Then the Royal Family. No we at the bottom have had enough let’s start at the Top first and stop grudging hard working people what they have rightly earned. I am disgusted at this plan it punishes the wrong people and discourages good people from saving and doing the right things.
@@Benzknees I've seen more recent statistics which are saying since about 2010 the average life expectancy dor the poor and less well off is actually falling now. I would say this could be down to increasing poverty levels and massive funding cuts for NHS since 2010. Also I think the rich and higher payed should pay some more in tax. I'm sure their is enough money just our government has squandered it in dodgy covid contracts, mismanagement incompetence and to their friends and tory donors. Plus our corporation tax is now the lowest in all the G7 nations and most likely a lot more besides. And it hasn't boosted our economy or benefitted the rest of us in anyway, those businesses have just put the extra money into their pockets, ceo's, directors . On the contrary, the experts are saying if we increased corporation tax it would encourage UK businesses to invest more back into the businesses, thus increasing growth and efficiency etc. Because those businesses would rather put the money back into the business when the choice is either give the money to the government in more tax or reinvest it and this get tax relief on the money reinvested
@@arabellasommers9343 - As those NI contributions by then current taxpayers have always paid for then current pensioners' State Pensions, the pensions would also have to be paid back.
I'm gonna start spending my money before they come for me, saved all my life paid 5% OF MY INCOME IN TO MY OWN PENSION AND FOR WHAT,!!!!!!
It's a evil and a disgrace what there doing 🥵💖🙏🇬🇧
Exactly
You are spot on , they can only raise the entitlement age so high. Next step is means testing savings and assets. Punch to the gut for middle earners who have saved ☹️
I have a private pension which I paid 14% of my income into for 30 years. Why should I forfeit any of my state pension as I also paid 40 years of National Insurance. I had no option to opt out and expect to receive my full state pension when the time comes.
Exactly right! 👍
Indeed, I can only see this working if the entry date is 30 to 40 years in the future to give people time to adapt their contributions and make use of whatever NI saving or similar the government sweetens the deal by.
@@AgileSnowWeasel
You've made a good point there, Graham. Those who've lived and worked within the old system shouldn't be penalised by any changes made by the new system whilst they're still alive.
Spot on 👍
My husband’s pension is less again this year because of the tax we pay, and mine is taxed as well. All the ‘triple lock’ does for us is increase our tax burden. We don’t have enough money to be worry free but just too much to get help.
I am in exactly the same position but be happy those taxes we pay are helping to pay for those poor souls on £60,000 a year to get child benefit
Labour are talking about getting rid of the triple lock.
Im lucky to be a higher rate taxpayer.
Bear in mind, if you’re a high earner, your employer pays 13.8% in addition to the 10-12% (now 8%)
This means high earners can pay in 100s of thousands along with the employer’s contribution which is technically part of your building up of contributions.
To be told, that because you did well and probably saved and paid into a private pension, that you’re not eligible for SP, would be criminal.
I have already paid my 35 years in, as I started paying when I left school in the mid 80's. I will still have to wait another 12 years to receive it. I am also a high tax payer, and I have always used the SP calculation as part of my retirement plans - to means test it against my other incomes would be a poor move by any government - but I see it as a potential anti -working person thing a new Labour government will do - oddly.
National insurance was always just another form of tax used to pay for current expenditure. With public debt at £3trn, and another £5trn in unfunded promises to public sector workers for their occupational pensions, we can expect both higher taxes & NI, lower or no state pensions, and more charges for using the NHS in future. Basically the country has been living well beyond its means for many decades, and the bill is coming due.
@@Benzknees The problem is national insurance is actually a flawed concept, as it has never covered the cost of the things we say it is for.
A fairly skilled economist will tell you, that if you hold the tax threshold levels were they are for say two years, and reduce NI to say 1% - so we keep a record of who has paid - then the government will be raking more money than every before in tax, without NI.
In the years after that you gradually lift the tax tiers by 2% a year or by inflation if it is less than 2%. That way maintaining fiscal drag, and increasing the tax pouring in .
Psychologically you will notice less - as you have been given some money back in lower NI rates.
@@DS-cf1zc - Well yes, that's what they've done in part. But there comes a limit when taxpayers get fed up of being dragged into the higher rate tax band, even tho' their real wages haven't increased. I was one such, and gave up work early as a result.
Scale that up across the country and you potentially have a big problem. Already the top 10% of taxpayers pay 60% of income taxes, up from 35% in 1978, while 56% of taxpayers get more in benefits than they pay in taxes. The tax base is scarily dependent on fewer & fewer people.
@@Benzknees I get it - I passed into the 40% bracket in 2008, and ever since I have paid 50-51% on every new pound I earn - purely down to NI.
The current reductions mean I am down to around 47-48% on every new pound for the first time in 16 years.
Hence why we need to somehow, restructure taxation.
Increasing NI, and doing nothing with PAYE would mean for every new pound I make, I could end up paying up to and over 55%.
If any government wants to reduce or completely take away a persons pension then they should be made to repay all the contributions said person has paid I’m during their working life , let’s see how keen they are then !
£238,000 I paid in at agrand a month pension amounts take lump iff offered
A softly spoken voice keeps everyone calm. Don't rock the boat and keep legitimising their complete power and control over you by voting, but you'll keep dreaming that some party leader or someone out there cares about you. Wake Up..
The problem is worse because NIC pension money is not ‘ringfenced’ by government. In other words it gets ‘raided’ by government for other things… If you pay in, you should get out… end of
How would you do that when the state pension scheme was set up as a pyramid scheme? The original beneficiaries were paid by then current taxpayers & it's continued like that ever since.
NI is just income tax and isn't ring-fence for anything.
@@BenzkneesThat is not a pyramid scheme.
@@timg1246 - A unsustainable scheme where large numbers of new members of workers are recruited with a promise of the same future rewards as a small number of pensioners get. But as those expecting s reward increase & new members tail off, the scheme fails. That's the very definition of a pyramid scheme!
@@timg1246 No, it's a legalised Ponzie scheme
I’m just under four years away from my state pension. I have a decent company pension that I paid into for nearly 40 years. I paid forty four years national insurance contributions, but I’m expecting something to change from the next government. Who knows how long they’ll live , the state pension should not be means tested otherwise what’s the point in working and saving hard all your life.
Would be just another way to put down people who have tried hard.
I would take my 25% tax free out of that works pension have a smaller pension to have with your state pension do it early so the pension has its tax on pay as you earn it works better than getting a tax letter
Once a year to pay talk to someone who can give you good advice
@@TheCornish123456 Indeed. So retire early.
In 2009 like many people I was made redundant when the company I worked for shut down - I signed on, as many did - then I found out because I was intelligent enough to put away money in savings, my benefits were "means tested" as well - I got £300 a month - while I should be grateful, I cannot help but be annoyed at the fact I was unemployed for over a year, as many were as the economy had just tanked, My outgoings were £800 (private rent not mortgage, bills food etc etc, I even SORN'd my car) so in the 15 months before I managed to get a job I used over £7500 of my savings - JUST BECAUSE I SAVED MONEY when so many did not and got double or more free from the govt.
There’s a lot to be said for hiding your savings, specially now the interest rate is going lower.
@@nickcastings1568is that legal? What would be the consequences of this legally?
I’m sure it’s not.
@@nickcastings1568 now you can see why Ken Dodd didn't declare all his earning, I praise him for that.
@@nickcastings1568- banks have to notify HMRC of any accounts. Do what certain sections of the population ('travellers' etc) do and buy gold. Untraceable and easily hidden.
As far as I am concerned my contract for my pension started when I started work in 1983…. It’s already been changed so I have to work until 67… I have full stamp and still paying National Insurance…. This is nothing short of criminal if it happens
The state pension should be based on how much you have contributed into it. Plain and simple.
To some extent, it already is.....if anyone is below the 35-year threshold. However, what irks me is the fact that those who've never bothered to work are getting the full state pension. Those who've lived on the dole their whole lives should not get the state pension.
@@EIRE55 What’s worse is that you don’t have to have paid anything in to qualify for Pension Credit, you qualify by not qualifying for the state pension and it is a much more generous golden ticket.
@@denisescally7090
True. I was just about to switch off and go to bed, so I'll try to think of anything other than this.😵💫Stay safe and well, wherever you are.😉
@@christines5430 Agreed. It's like awarding failing pupils top grades, like arresting people who have not committed an offence, whilst releasing convicted criminals early and giving them benefits. They are essentially rewarding negative behaviour.
@@christines5430 It is. But this lot, are stealing from pensioners.
Few members of my immediate family lived long enough to receive the State Pension. Blue collar working class people tend to not live that long. As for !myself I started receiving the State Pension at 66 two years ago. The pension is 100% of my income. I'm very sorry that I managed to survive so long. But maybe not for much longer, seeing I'm undergoing tests for colorectal cancer. So all the more to keep foreign freeloaders in the style to which they have become accustomed.
So sorry for your diagnosis, hope for a good prognosis.
Thanks for your concern. It's greatly appreciated. I intend to be around for a few more years.
@@danielcalderwood6674 excellent news.
How do you get to 66 without ever contributing to a private pension during your life? It's been mandatory for the last decade as well. I hope the tests come back clear for you.
@GrahamBriggs Thanks for your concern re my health issues. It's difficult taking out a private pension scheme when you earn barely enough to feed, clothe, and keep a roof over your head.
Currently only 40% pensioners receive a full pension. WASPI women had up to 6 years stolen from them. The uptake of pension credit is quite low. Anyone who has a work pension should know it’s taxed!
SP alone will be taxed soon as it edges ever closer to £12,570…
WASPI women have their upper middle class feminist sisters to blame, and EU equality regulatioms, for providing the Government with the pretext for raising the State Pension age for women.
Not if you only withdraw 25% of it
@@wiganer9912 I withdrew a small amount initially from one small pension but I’m still taxed because they add it to another pension, which is slightly larger but nothing to write home about! The tax is not much but it the principal. I would have been better off having no extra work pensions & live off the state pension & pension credit which is more! I don’t qualify for pension credit as I have savings, from doing without & deferring gratification. Bitter sweet really!
Waspi women had up to 6 years to earn extra NI qualifying years, you mean.
Its a bit of a stitch up if you have paid in 45 years and suddenly it’s taken from you
Not the first stitch up … waspi women
I'm one of those unfortunates .....
Hi Dianne , just found your channel and liked and subscribed . My partner and I are still amazed at the recent general election result as to how many people moved from their natural/historical party allegiance because of the simplistic word 'Change' used by the Labour party . Did so many people really do this without questioning WHAT changes this might mean under Labour ????? And here we are , just a few days after their win , already discussing means tested state pensions ! Oh , that's one of the changes Labour meant was it . Yes , I'm afraid so but you can't withdraw vote now , idiots ! The Tories stood by the triple lock promise and certainly over the years we pensioners all applauded them for it . I won't even touch on the immigration problem and what Labour will do with that . Enough already .
I enjoyed your video and appreciate many of the points raised . It is clear that any Government has a problem with the increasing ageing population and the burden that puts on revenue from tax & NI . If means testing was ever to be brought in any Government would have to set the savings/assets/income thresholds quite high so as not to penalise the average person or they would have a very short term of office , and might I say even huge protests and rebellions on the streets. Look forward to future videos , well presented.
Well, if the government does go ahead with any means testing for pensions….then I would argue we need means testing for how much we pay for everything else through life…..food, petrol….you name it!!! Both my parents didn’t make it to the age I need to be to get my state pension…..so I’m not expecting anything even though I’ve paid my 35 years…..
If it does go ahead, Im not sure if that wont be some international precedent? Im yet to hear of a country that means tests their pensions. Also if that idea ever gets entertained, this needs to be with a fair amount of advance notice on how the system will work so that we can adjust.
@@Kaizen917 So apparently other countries means test for pensions. Including Australia I think. I will try to find where I read this.
For a benefit that is contributed to by all workers, there should be no question of then, later, means-testing whether a worker 'deserves' the pension they have contributed towards. As we know life expectancy has increased since the original rules were established. This means that delaying when the pension is receivable could be reasonable. Unfortunately successive governments have used the income from National Insurance for current projects, rather than investing it for future liabilities, such as the State Pension.. Governments have also squandered the 'windfall' of North Sea oil profits, which might have been invested in a sovereign wealth fund such as the Norwegians did. The bottom line is that a wealthy democracy, such as the UK, should make sure that it has the ability to look after its elderly, treat its sick and prevent poverty. The distortions of the economy by the extremely wealthy and misguided politicians has meant that this simple set of goals are very difficult to attain.
Spot on & well said 👍👍👍
The means testing of the UK state pension is only 7 to 10 years away. That is why The new legislation allowing government to check the bank accounts of anyone receiving a state pension, now classed as a benefit, not an earned right has been implemented. Once up and running the state pension will depend upon property owned, cash assets and private pensionable assets. You'll be audited without your knowledge and the state pension to be received, age 70+, will be tiered or possibly even denied. With the continued massive influx of foreigners, 10 million since 2005, resources will have to be made available for state pensions which will not be available for all. Once everyone knows what procedures and standards are set many will stop saving, stop paying into pensions and even stop working. This will play into government, EU WEF. WHO and UN hands. The less assets people hold in the form of cash, stocks and shares and property the easier it will be to implement Central Bank Digital Currency. Thus controlling the economy's of each country and their populace much more closely. That will just be the beginning......
Yeah I agree. Don't have a private pension. You will be Shafted.
Spot on. I’ve had a gut feeling about means testing state pension for some time and my gut feeling over the last four years hasn’t been wrong yet.
1984 citizen!
Scary
Thank you, Jim, that's the best comment on here (yes, I've read every one of them).
May I ask why you've said "The means testing of the UK state pension is only 7 to 10 years away"?
How do you know it won't be sooner than that? Just curious, but would love to hear back from you.
Stay safe and well, wherever you are.
I have worked like a trooper my whole life ( now 61 ) and already have more than 35 years of contributions, plus a net asset base of about £1.8m, so I am pretty well set for retirement..................My brother, who is a lazy bone idle waster has sweet fan Anne to show for his work life ( or lack thereof ) & will still get the same State Pension as me, PLUS a truck load of other benefits. If it becomes means-tested I will spit feathers.
Yes indeed, Max. I have a brother who's the same as yours, and who I was continually handing out to during my working life. Fortunately, I eventually had the sense to turn my back on him shortly before I retired. I haven't seen or heard from him for many years, but I lost nothing. Take care and stay safe.
Work doesn't pay now . Why would anybody work if the reward for working & creating wealth is the loss of the state pension ? The Government would target hard working people like you who bothered to get off their arse & created weath . Means testing is a Communist, s wet dream . Weath creators get their money redistributed to the bone idle.
@@EIRE55 I haven't heard from mine for 8 years - I couldn't care less to be honest, I certainly don't miss the dramas.
You will probably get less than your brother because he needs it and you don't so unfair
@@jacquihigley1007 For sure he will be up to his neck in benefits once he retires. He'll get nowt from me though, or my Mother whom he hasn't spoken to for 9 years. She is leaving her whole estate to me so I will be even wealthier - make note though his two boys are my main beneficiaries as I have no kids, so they will get everything I have. They will get nothing from their father. If you gave my brother £250K he would spunk it up the wall in a couple of years...........on women - he's done it before.
I started life with nothing and I have most of it left, this is a lyric from a song written by a guy named sea sick Steve.
It reminds me of what life feels like when you retire.
NIC’s represent 14.8% of all government income. So if 11% is set aside for pensions… where is the money going? Why can they not afford pensions?
When I last spoke to the tax office they reminded me that money also goes to the NHS from the NICs. In addition the fact that the NIC was reduced 4% is worrying of what it is to come next. Now they will have an argument that NIC does not cover all pensions and NHS anymore so they will think of another way to cut our state pension
Hi. I am now 71.
That was all very interesting facts. Wow.
I remember when I worked for myself I had to make sure I payed mine in each month. It was a different amount (smaller). But I made it up. So as to make sure I had the full amount. When I became an pensioner.
I received that letter saying I had done all that I had needed to do to become and have a pension. And would I need it now or later.
Well at the time. Boy, did I need it. Things were happening in my life.
So I am happy now.
Thank you for the info. 😊
So once you reach the age of 67 years old and have paid 35 years NIC but unfortunately you die at 68 years old The government never tell you that side of the NIC story ?
Neither do the upper middle class "high earners" who retire in their fifties, and live to a hundred.
I started work in 1977 after Uni as an Articled Clerk. We didn´t earn much so paid minimal NIC. Having qualified as a CA I went to work in the middle east, this lasted on and off for 20 or so years. I had 10 years contributions when I returned for good. Paid class 3 NIC for 5 missed years and did a small amount of small self employed work and paid Class 2 NIC, This got me to 27 years when the time needed was 30 years. They then changed the time to 35 years, I could not add any more years but I was not complaining. My first year of pension mostly covered my total contribution into the NIC.
No i am on the old pension and get less than the man next door who never had a job from leaving school how fair is that
A means tested pension would drive the narrative of, what's the point in putting money away for the future, you'll just lose all your state pension benefits.
well you could put it away, and spend it before you claim your pension. Or put it in your kids bank, and hope they share it if you need some.
@@shaz7132 people have the right to decide when they spend their own money .
Not a case of if changes occur in the future but when. You don't have to work to qualify for an income in old age, glad you mentioned pension credit and other benefits that accompany it, they will give you that income. We are sitting on a financial time bomb and it's about to go off. It's also high time the politicians told the truth.
Due to the very high rate of excess deaths since 2021 which doesn't seem to be slowing, the main thing people need to be concentrating on is what is causing the deaths and then avoiding it.
I have a decent final salary pension although thanks to Gordon Brown's stealth taxes it is a third less than planned and I had to work 10 years longer and pay more.
I have paid more in NI and will still get the standard State Pension. It is also taxed at 40 per cent. So it's already means tested.
A very interesting and informative video 😊I'm 55 years old and this is now something I think about alot! Great video and you do have a easy to listen to sweet voice 😊😊
The government’s attitude is enough to persuade people not to try too hard anymore. Life rewards the slackers!
Read this!!! When my dad died, i kept his bank acc open. I used this for saving into when i was working, keeping my own bank acc low. Retired eight years ago at 68 and still have both accounts, savings in my dad's and pension going into mine. Paid tax & N.I. since i was 15,,,no intention of paying any more 👍
Assuming you are the sole beneficiary, I imagine both accounts would be assessed for means testing. Legally speaking.
@@jamesburke6739 Dad's account kept secret, only I know about it so can't be assessed.
As said below if the goverment looked after people that were born in this country and not wasted
billions on the ones that see the Uk as treasure island funding the full state pension would not be an issue.
One thing that will hit a lot of us already receiving the full sate pension will be income tax.
At the moment the personal income tax allowance remains frozen at £12,570 this means that when the pension
increases beyond this figure we will start to pay tax on it.
The future does not look good for existing pensioners and worse for those facing a much longer time before they
will receive it.
If you contribute you should get the rewards simple.
The state pension is consequence of paying in National Insurance. The more a person earned, the more a person paid in to the national pension pot.
Everyone might get the same amount, but not everyone paid in the same amount. Some paid in a lot more.
Don't forget about those who's pensions were contracted out like the Civil Service and the National Health Service etc, I was fortunate enough to check my pension some years ago and found that there was a short fall which I then have had to make up show my years of contribution is around 46 years of paying into the scheme.
The state pension is already means tested in as much as it is kept low so that those with other income (company pensions etc.) can manage, and those with no other income have to claim benefits in order to survive.
If you have savings over £6,000 you are presumed to receive a certain income, over £16,000 you are not eligible to receive any means tested benefits. The amount of income the DWP assumes you receive from savings is far greater than any interest received by orders of magnitude. So basically, if you have savings blow it all before reaching retirement age.
Mine will be in my thai bank account ...
I endured low pay and gruelling work as a nurse in the NHS , knowing that at least I would get a decent pension . Because of opting out I don’t get the full amount of state pension and I pay tax . Those who didn’t pay into the pension claim pension credits and all sorts of other benefits . They are better off than me . I should have spent my money .
I did and iam glad i enjoyed myself while young enough
Low pay and gruelling work as a nurse in the NHS? You do realise that the pay scale, shift allowances, sick pay and pension scheme for NHS nurses is a matter of public record. Of course, depends on how you class low pay and gruelling work.
@@danielcalderwood6674 I am now retired , pay when I was working was not what it is now . . Yes , we had sick pay , and I appreciated the pension terms , but I rarely worked in any unit which had its full complement of staff . . If you don’t think the work is hard, ask yourself why the NHS has such a huge number of vacancies and always has had .
@@danielcalderwood6674 I am retired now , we didn’t have such good conditions then . There are 40,000 nurse vacancies now . What does that tell you ?
I have been paying in to this pension from the ages of 17 to almost 70. It is not a benifit it is my money the government has been playing fast and lose with. The calculations she gives do not account for the massive devaluation of the pound over your lifetime.
I am 70 years old next month and your comment about the state pension being a pay as you go system is spot on. However, that is not how it was sold to us. As a child, we were told that there is a pot of money with our name on it and, as you work, your N. I. contributions is built up over the years in readiness for your old age. That was clearly a lie.
yep, and this happens in most countries hence the premise that its a government backed ponzi scheme.
If those who did not contribute get a state pension how can they penalise those who did contribute and also saved else where for their pension.
@stuartkennedy4202 .Great Question?
Your video is excellent and covers all possibilities, thank you. I did know most of it and it has reaffirmed my view of an ever changing entitlement. 👍
Means testing should be standard for anyone who is making a career solely from receiving state benefits without doing a day's work. To apply a means test to those who have worked for a pension is nothing but an outrage.
Spain pay pensioners £2,700 a month so it must be doable to pay what our government pay at the moment. We are 15th in Europe so much for GREAT Britain. Luxembourg is top paying £5,200 a month.
A lot of Europe pay in more than we do..
Certainly in France they pay in much much more, so they get more out.
@@stevenmetcalfe1808 And in France the retirement age is younger.
It’s definitely a benefit for Canadians married to a British person and therefore qualify for state pension, many of whom have never set set foot in our country. Get your head round that one.
They've already moved the goalposts, work longer and more qualifying years required.
Another great video on pensions. Much needed as retirement saving in this country is just not high enough on the agenda. 👏🏾👏🏾
This sounds like preparing for the universal income which has been talked about. Boris also spoke of how there will be a maximum number of CBDC's which can be held.
Our pension was paid for by ourselves ,the government isn’t giving us anything ,I have paid into it all my working life .🏴🏴🏴🇬🇧
On the question of should we all get the same state pension. I believe if we all pay our required rate of NI contributions over the required number of years then we should all get the same back in state pension regardless of our personal financial means.
I’ve already paid 37 years N.I. & I’ve still got another 12 years to go. I wonder how much the pot would be worth after 49 years had it been put into a private pension?
Thanks for a great video. It's all too easy to assume there won't be changes to the state pension "contract". But as it becomes less affordable for governments there could be more than just small tweaks to it.
It will only become less affordable if this or any respective governments keep funding these illegals arriving every day.using our money to house them and feed them plus giving them some pocket money.🤔
If you have paid into it you should get it, if not nothing!
You will be getting a goose🪿 egg🥚out of it.
A taxed egg at that !
Voluntary NI contributions is an interesting idea. This would allow people to invest the money they otherwise would have paid in NI contributions and hence be able to increase their pension quite considerably. I am all for it.
@oddrunhaland . I agree Voluntary NI contributions is a good idea. That would give people more control over their preferred retirement age etc.
We saved up our working life to be reasonably well off when we retire and let’s be honest we do not know how long we will live. My father died at 70 so only had 5 years retirement and my mum was 82, I have liver cancer at 67 I may have 3 years left at best, so now I have the worry of not having sufficient funds to live anyway, what a freaking life. The pension is not a benefit it’s something I have paid into for 43 years, if I had a choice I would have put a proportion of my NI into a pension fund.
It is already "means tested" in a way, as a pensioner faces a pension progressive (income) tax. So if in receipt of a higher pension as they receive their state pension - they may be paying 40%, 42% or even 45% tax (means tested) on their additional income
Means testing would undermine the incentive to save for pensions since your savings would effectively be wasted.
Hi I live in Australia AND have been paying type 2 NI for my UK State Pension because I won’t qualify for the Oz Pension as I have been prudent and put enough into my Super (or hope to) that I won’t qualify. However, I’ll probably retire at 60 and then spend down my Super between then an 70 until a point when I get some State Pension. Finally, I do know many middle income people who do not over invest in their Super because they want the Pension. I guess you need to educate yourself about the options and make your choices! It’s certainly more complicated here!
Between the video and your comment it really sounds like the Australian system is punitive and has the opposite effect that is intended, of making people save for the future.
State Pension isn’t the highest it’s ever been in relation to earnings. The change to The New State Pension dramatically reduced State Pension by removing the “Earnings Related” element which was paid on top of the basic amount. For most people that reduced overall State Pension by around 40%. Previously, State Pension equated to around 50% of the average salary, now it’s down to around 30%.
My dad worked until he was 76, he started paying at the age of 14 but sadly died before his 80th birthday. He never received any care from the state when he was in palliative care due to none being available,but as a family it was our honour to care for him. How fair is that on a working man.
Means testing a very low inadequate state pension just provides another disincentive NOT TO SAVE.
And even work .
So, basically those who spend, spend, spend during their life will reap the reward in their pension years; and those who went without, but saved will be penalised in their pension years... That's not at all fair. In fact, that would be shockingly unfair. I think that everyone should get the same State Pension, and then they can decide what to do with it - be they poor, comfortably off or very rich.
This has been happening for decades, successive governments have ignored the issue.
I am getting very tired of being promised one thing by the govt and then when I come to claim it either I’m told I have to wait longer for it or it is not going to be worth anything. All my working life I planned for my retirement and that included the State Pension. Not only have I had to wait 6 yrs longer for the State Pension, something that was suddenly sprung on me but I now face having it snatched away entirely. Revolution beckons!
It is already means-tested why do you think you still have a tax code and pay tax on additional income...