UK state pension: How means testing could derail your retirement forever.
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- čas přidán 14. 06. 2024
- Welcome back to the @Economese channel where together we will learn the language of money and wealth. We are also dedicated to mastering money and making financial wisdom available for all.
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Welcome to our latest video, where we dive into the hotly debated topic of means testing the UK State Pension. Whether you’re close to retirement or simply planning for the future, understanding the intricacies of the State Pension system is crucial.
In this video, we’ll cover everything you need to know about the current system, the arguments for and against means testing, and potential alternatives.
State Pension Refresher and Eligibility
We start with a refresher on the UK State Pension, explaining its importance as a cornerstone of retirement income for millions. We’ll outline eligibility criteria, including the number of qualifying years needed from National Insurance contributions and how to check your State Pension forecast.
The Triple Lock System
Next, we discuss the triple lock system, which ensures the State Pension increases annually by the highest of average earnings growth, inflation, or 2.5%. This policy aims to protect pensioners’ income, but with rising government expenditure, is it sustainable?
SERPS (State Earnings-Related Pension Scheme)
We’ll provide an overview of SERPS, its role in the State Pension system, and how it affects the pension amount for those who were part of the scheme before it was replaced by the State Second Pension (S2P).
Why Consider Means Testing?
The idea of means testing the State Pension has gained traction as the UK grapples with increased longevity and mounting government spending. We’ll explore why some policymakers are considering this approach and what it could mean for future retirees.
Longevity and Government Spending
Longevity is a critical factor, as people are living longer and drawing pensions for more extended periods. We’ll examine the impact of an aging population on government spending and the pressures it creates on public finances.
Arguments For and Against Means Testing
We’ll present a balanced view of the arguments for and against means testing:
Arguments For and Against Means Testing
For Means Testing:
Fairness: Directs funds to those in genuine need.
Sustainability: Helps control government spending.
Targeted Support: Ensures that the most vulnerable are protected.
Against Means Testing:
Complexity: Adds bureaucratic layers.
Disincentive to Save: May discourage personal savings.
Equity Concerns: Penalizes those who have saved for retirement.
Australian Age Pension Inspiration
Looking abroad, we’ll examine how the Australian Age Pension system works, where means testing is already in place. We’ll discuss the pros and cons of this system and whether it could serve as a model for the UK.
Monitoring and Supervision of Bank Accounts
One of the contentious aspects of means testing is the monitoring and supervision of pensioners’ bank accounts. We’ll delve into the implications of this surveillance, addressing privacy concerns and the administrative burden it could impose.
Alternatives to Consider
Finally, we’ll explore alternative solutions to means testing. These include raising the State Pension age, modifying the triple lock, or introducing a tiered pension system. We’ll weigh the potential benefits and drawbacks of each option.
Join us as we navigate this complex issue, shedding light on the future of the UK State Pension and what potential changes could mean for you.
Playlist
00.00 Introduction
02.16 State pension refresher and eligibility
03.01 Triple lock
03.36 SERPS and contracting out
03.55 State pension forecast
04.39 Why consider means testing anyway?
05.11 Government spending
05.27 Longevity concerns
05.56 Means testing benefits already exists
07.04 Australian Age Pension inspiration
08.31 Argument FOR means testing
09.03 Argument AGAINST means testing
10.00 Monitoring and supervision
10.52 What are the alternatives
11.45 What is the cost of annuity to replicate the cost of the state pension?
#ukpensions #statepension #retirementplanning #Australianpension #pensionreforms
10.26 Banking oversight and monitoring bank accounts
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Pension is NOT a benefit!!!!!
In their eyes it is.... and if you make trouble, they can sanction you.
@@janedoe6350 fuck them
Exactly right! Imagine a private pension company trying to pull this scam - you pay in all your life and then they turn around and say no mate, sorry, but you have enough money to live on already, so you can't have the pension pot you've paid into all your life.
@@randomnesspersonified Yes, but here's the point, Private companies are not allowed to run Ponzi schemes. The Gov don't put your money away.... they use new investors, to pay the old ones. And they are running out of new investors because the young can't afford to have kid.
Gov have been using immigration to bring in the new investors while pretending they don't like this immigration and pretending that they want to stop it. It's all a problem of demographics.
They need more young contributors to pay the old ones who are living longer. And like all pyramid schemes,it will come crashing down. Currently, this "means testing" is just a way of them buying more time. But the reality is.... they are broke. Your moneys gone. It was spent the day you deposited it!
Pensioners of today may remember how thair parents scrapped and scraped to save for retirement and if you fell short and asked for help you were means tested. If you had a nice table and chairs ect you were told to sell them to make money. Also fridges, freezers and televisions were all classed as luxuries. There will be some heart break.
It’s not fair to penalise those people who worked hard and saved hard all their working lives in order to have a comfortable standard of living in retirement.
To Labour fair isn't fair
If don't smoke drink or gamble the government considers you a tax avoider.
If you work hard & invest that money and set yourself up in old age now the government wants to take that away.
So who should we penalise? The youth? Problem is.... state pension is a ponzi scheme where they pay early investors with money taken from new investors.
But ponzi schemes blow up when they run out of new people coming in. And people are just not reproducing like they once did. If you or i ran a scheme like this, we would go to prison. But for the government.... it's fine. One thing is for sure.... at some point this ship is gonna sink and there will be no money for anyone.
They did that in Australia. So only those who absolutely need it get it. Of course those who wasted their money are also recipients. Most of my friends and colleagues are still working because of this. The UK should do means testing as a way of eliminating the burden and free up funds for more deserving causes.
Unfortunately the way the Welfare State works is that those who work hard are expected to pay for both themselves and others. In Australia half of the population make no net taxation contributions to run the country.
I’m all for equality. If you pay in, then you should receive out. Paying in and getting nothing in return should be challenged in court if it happens. None of us had any choice in paying NI and so the government should have no choice but to pay out. I would definitely fall into the category of getting nothing from the government if it was means tested, but have probably paid in 3-4 times the average fully paid up person over my working life.
The legal term is taking money fraudulently. Paid for 35 years & told it entitled you to a pension but then when you claim it .. Sorry. Sounds a bit like a Indian call centre.
Not so long ago the government run a scheme to help with the cost of changing your old gas boil. To a more up-to-date one.. the guy said I'm a pensioner do I qualify for this scheme the answer was No reason given state pension is not classified by the government as a benefit but an entitlement.. needless to say No help was given as to the cost of the up-to-date boiler.. .
@@stuartregan1627 by the time I retire I'd have paid 51 years.
@@fredsmith3859 If you ask you will be told it is a benefit, not something i agree with though
None of us had any choice in paying any form of tax, for nothing in return unless you fail to look after your health & overuse the NHS, and unless you fail in your education & training and end up on benefits. NI is just another form of tax, with as theoretical link to pensions as vehicle tax has to maintaining the roads.
That's like putting money in your Bank then when you go to get your money out then find out that the bank has spent it
Another youtuber covered this a while ago...that when you put your money into the bank it is no longer your money. Neil McCoy Ward I think it was, who discussed it. You have to hand it to them, they're very clever - they've got it all sewn up nicely in their favour. I remember when I used to get my wages in cash in a brown envelope every week. Then a cheque - which most people would pay into the bank. It transitioned over time, to the majority of people having their wage put straight into their bank account. So effectively, the employer just gives the money straight to the bank. Not that it's really the employer's money anyway, if it's already sitting in THEIR bank! It's just banks sending numbers ("money") to other banks and the account holders don't really matter at all. Incredible stuff really, huge con.
The real question here is what is right and fair, work hard and generate wealth, pay your taxes and you get penalised to pay for people who have done precisely the opposite really doesn’t sit well.
"We work so you dont have to" Thats the UK all over
Hi Vander, thank you for your comment and for supporting the channel. Balancing fairness in tax and in pension systems is crucial. It's important that hard work and wealth generation are rewarded, but it's also vital to support those who may have faced different challenges. A fair system should ensure that contributions through taxes are used effectively to benefit society as a whole, without unduly penalizing those who have worked hard and saved. Sounds easy in theory but much harder in practice. You'r right that it won't sit well with most. Please keeop watching and subscribe ;-)
Thatcher had us paying into private pensions only for Gordon Brown to come along and tax it.
Government needs to keep its sticky little fingers out of our pockets and then stop forking over tax payers money to foreign interests.
Thatcher also allowed big business to take a "contribution holiday" on employers contributions to final salary pension schemes when the stock market was riding high. . Forget the adage that you must pay in the good times to cover the bad.
When the UK stock market collapsed in the 90's and 2000's, final salary schemes racked up huge deficits due to the contribution holidays. This resulted in the collapse of final salary schemes and the pension crisis we now see unfolding in this video
@@andrewhutchinson36 wasn't aware of this - thanks.
Is Starmer about to hit pensions just like Brown did, I bet he will.
@@andrewhutchinson36Employers were forced to take a pensions contribution holiday because the pension laws did not allow for overfunding of future pension liabilities beyond a certain amount. So, when markets were climbing and returns were good, companies could not make more contributions tax free. The Government feared that firms would reduce their Corporation Tax bills by channelling corporate profits into the works pension fund needlessly. The real harm came from the raid on the pension funds initiated by Chancellor Gordon Brown. Then a tightening up of the pension administration rules after Maxwell et al meant that pension trustees became hugely risk-averse and ended up forced to invest in 'safe', but low-performing, bonds, rather than in riskier, but potentially better investments, such as equities. The final straw for many defined benefit schemes was a prolonged period of very low interest rates, meaning that returns were low and pension funds struggled to be funded well enough to pay out the promised pensions.
,
Brown did worse than that, apart from his one-off tax grabs, he removed the tax relief pension funds received on investments. Nowadays the funds, who were the biggest investors in British companies, hardly invest here at all. When the long-term cost of all his screw-ups is calculated Brown will go down as one of the most incompetent chancellors in history. I hope Rachel Reeves has learnt the lesson of the Brown years
Total Rip Off if they do that
Hi Allan, thank you for your comment and for supporting the channel. They can either measn test the pension or keep extending the state retirement age - either way will be unpopular and stoke resentment. Please keep watching and subscribe :-)
The government wants to means test its native citizens when they become of pension age, but has no problem with spending billions on people who have just turned up here and never contributed a penny.
Absolute hypocrites the lot of them, vote reform UK!!
Wonder if all these politicians will be subject to this as well like the rest of us mere mortals? Not that they need a state pension when they are on 85k a year for ruining everything for the rest of us!! No doubt they will make sure they are all financially OK and look after their own whilst penalising the rest of us!! Rotten dishonest hypocrites the lot of them. Maybe they wouldn't need to think about clawing some of this money back if they were not chucking millions at those illegal scumbag immigrants who do not even belong here but expect to be looked after and supported without paying into the system! So wrong on every level.
Rock up on a dinghy, plenty of money.
You couldn’t make it up 👏
Exactly. Same here in Australia. Tired of rocking up to my chemist and paying full price for my prescriptions whilst a migrant gets it for free
Over my working life I’ve paid many hundreds of thousands of pounds in tax and NI and have never made a claim on the system. I have also saved into pension schemes to supplement my state pension when it becomes available. State taxation has been the biggest draw on my income and I have never made any claims on the system or made serious use of the health service. I would be furious if the state pension became means tested as I would end up losing a large part of my income in old age. State pension needs to be recognised as an entitlement not a benefit. State pensions are affordable they need to be prioritised over Government squandering which is just transferring tax payers money into private hands.
Well said I totally agree, as an older person in my 70’s who has always work paid my taxes and national insurance and saved for my retirement I too would be furious if this was implemented. I already have a form of means testing on my state pension because of the way it is treated by the tax system which means I loose part of my personal allowance and there pay more tax on my private pensions and my small Salary from my part time employment.
@@patmartin9727 I recall my father having the same. I guess it will happen to me as well when state pension age comes around. That’s already means testing. What more do they want? I’ll be damned if they start looking at my savings that I’ve already paid tax on.
Hi David, thank you for the comment and for supporting the channel. There is legislation going through Parliament at the moment allowing for greater scrutiny of bank accounts for assessing benefits and it is likely to be with us sooner than we think. All in the name of safety and security and fairness of course. Keep watching the channel for developments and subscribe :-)
Hi Pat, thank you for the comment and for supporting the channel. I hope you are enjoying your retirement. It would be highly unlikely to affect those who have already retired, but it could affect younger people. There is such negativity that the IFS stated that 33% of people don't think there will be a state pension AT ALL in 30 years - let alone means tested! Stay healthy and have an amazing retirement. Please keep watching and subscribe :-)
After paying taxes for 40 plus years the very minimum should be a livable pension. Not a pension that is only payed to the workshy & feckless. Telling people if they work too much they get no pension is probably the dumbest thing you can do in a capitalist country.
Yeah signed up at 16 yo in 1978, never been out of work, so that's 46 years of contribution, so if I'm not getting a pension I'll have my money back please
Bloody right !
You only need 35 years in your NI record for the maximum amount of pension and the amount of the pension no longer has any connection to the level of contributions paid (since the earnings-related additional pension was abolished for those reaching pension age after 5 April 2016).
you have paid into nothing there is no pot of cash you are paying for people who have retired now
@@philbrett9227 it was a rhetorical statement, of course there's no pot of money, there has never been successive governments rob Peter to pay Paul, the point is that having no choice in the matter, but being forced to pay into a scheme, that is nothing more than a Ponzi scam, and then being expected to take out additional pensions to provide a decent retirement, doesn't work either, you will be taxed, that's means testing in itself
Hi Chopper, thank you for your comment and for supporting the channel. Your view is echoed by many in the comments but your NI has already been spent on Government spending plans and for retirees. It is highly unlikely any changes will affect you but the concern is for the younger generations. Please keep watching and subscribe :-)
I'm getting this from Labour. They keep saying we won't tax WORKING PEOPLE. It feels very specific
Hi Whalewraith, Thank you for the comment and for supporting the channel. That comment has stuck with me too - why use that particular wording - are retirees are no longer working does that mean future retirees could be fair game in the future? Please keep watching and subscribe :-)
I'm pretty sure that they are referring to tax avoidance and evasion, offshored for tax purposes companies and other scams and schemes favoured by tories.
Yes they will
That's a bit of a stretch - they can't even define what a working person is !
@@jamesbarbour8400will probably struggle to define what a person actually is as well
Absolutely everything belongs to the government. Your money. Your old dvds you put on eBay. Your bodily autonomy. Your thoughts and how you express them. They are coming for it all and it's happening fast.
Yep. "You will own nothing and be happy". And you might get to eat some bugs along the way too, if you are lucky. Concerning, how quickly it's all coming to fruition.
Hi D, thank you for the comment and for supporting the channel. Your concerns about Government overreach are shared by many. A comedian once said "its a big club and we ain't in it!" Please keep watching and subscribe ;-)
I started work in 1971 and payed NI every year until I reached retirement age at 66. I’ve paid for my state pension, it’s not some means-tested benefit
46 years of contributions.. retired 66.. brought up 2 kids, single mother.. saved money and paid into a pension.. if this happens, there will be a lot of people demonstrating..
Hi Frederick, thank you again for the comment. Any future changes are highly unlikely to affect you as you are now retired. There is no pot of money allocated to anyone based on their contributions as NI is just another tax the Government uses to fund their spending plans. Please keep watching and subscribe ;-)
Hi Veronica, thank you for your comment and for supporting the channel as well as sharing your story. Your commitment is clear: 46 years of NI contributions, raising two kids as a single mother, and saving diligently for a decent standard of living in retirement. If the Government changes the pension system to penalise those who have worked hard and saved, it will surely spark widespread demonstrations across society due to the unfairness. Many like you will feel compelled to defend their well-deserved pensions and I will be there with you. Please keep watching and subscribe :-)
The state pension is already means tested (sort of) I.e if you have additional income on top of the state pension it is taxed.
Hi User, thank you for the comment and for supporting the channel. You're right (sort of) that while the state pension isn't currently means-tested, any additional income is subject to income tax, effectively reducing the net benefit for those with higher incomes. My point was that a measn tested state pension benefit means you would qualify for a lower state pension from the outset based on an assessment of income and assets. Please keep watching and subscribe :-)
Just think, if the government had paid my national insurance contributions into a diversified portfolio of investments for the last 20 years and continued to do so for the next 25 years, instead of using them to pay for some roadman's 15 illegitimate kids, they wouldn't need to means test my state pension.
Hi Log, Thank you for the comment and for supporting the channel. I understand your frustration. Investing contributions in diversified portfolios could be a forward-thinking solution for future stability starting at birth maybe and let compounding work its magic? We need innovative, sustainable approaches to pension funding that ensure fairness and reward lifelong contributions but it won't be easy to keep everyone onside with no financial disadvantages or poorer outcomes. Please keep watching and subscribe :-)
The problem was that when they started to pay out old age pensions, they used the current receipts to pay for those retired or retiring. This works well enough if there are relatively plenty of workers paying into the system and few pensioners. We have an ageing population and a falling birth rate, hence the problem.
One solution for the future would be for the State to pay in, say, £3,000 or £4,000 into an individual pension fund for every newborn from birth to 18 years of age and investing it in equities for those years and forwards. There would be plenty by the time that person reached their retirement age of say, 70. Perhaps richer parents would have to contribute instead of 100% from the State if wealthy enough.
NI contributions can only be used to pay for a limited number of benefits - mainly the State Pension, but also Jobseeker's Allowance, and Employment and Support Allowance when those benefits are paid on the basis of the claimant's NI record.
Most other benefits including Universal Credit are paid from general taxation.
@@jeremybarker7577 There is NO separate fund where NICs go.
As a non academic type leaving school aged 16 in `79 to work as a builder`s labourer for a year then 6.5 years army service , I worked several years as an LGV driver. Approaching retirement now , I checked my ( full ) N.I. contributions - the years spent working 60 - 70 hour weeks of driving , stress , HEAVY manual labour , numerous injuries with eyeball & neck searing fatigue saw large N.I. contributions ( for an ordinary working bloke ). To me the Money was gladly contributed if it went towards the pensions of the WW11 generation , many of whom lived through starvation level poverty before the upheaval & horrors of WW11 . Things aren`t as clear cut now , the country has changed drastically & the entire political debate about pensions , tax , N.I. & entitlement is so heatedly nuanced , who can make sense of it all ? Any pensions I will receive were more than paid for with financial sacrifice plus the mental & physical injuries I still live with . The working younger generations ( & the willing who can`t find long term decent employment ) who won`t receive much , will naturally be resentful of previous generations who receive pension "benefits" . The p0litical creatures who created this division ( amongst others) will continue the pantomime & appear blameless , while we fight in the gutter for pennies & crusts .
Hi Check, thank you for your comment and for supporting the channel. Thank you for sharing your story. Your journey from leaving school at 16, serving in the army, and working tirelessly as an LGV driver is truly inspiring. The physical and mental toll that your work has taken is a testament to your dedication and resilience.
It's clear that you have made substantial contributions, both financially and through your personal sacrifices, to support the system that provides pensions to older generations. Your perspective on the fairness of the current system and the challenges faced by younger generations is both poignant and valid. The political landscape and the debates surrounding pensions, taxes, and entitlements can indeed be complex and often divisive.
As you approach retirement, it’s important to acknowledge that your contributions were made with the hope of a secure future for yourself and for those who came before you. The gratitude for the benefits you will receive is well-deserved, given the years of hard work and the personal costs you've endured.
Thank you for your service, not only in the army but also in the many years of labour that followed. Your story highlights the importance of recognising the human side of these economic and political debates. It reminds us that behind every policy and statistic, there are real people who have given so much.
Wishing you a peaceful and fulfilling retirement. May you find the rest and recognition that you so rightly deserve. This is why we have this channel to learn together and share these personal stories with searing honesty. Please keep watching and subscribe ;-)
As soon as they changed the name to a benefit I knew what the psychos running things were planning.
Hi again L, thank you for supporting the channel. The state pension has been defined as a benefit since 1992 and that may now come with strings attached as it is part of the social security system now. Let;s hope that any changes are communicated decades in advance. Please keep watching and subscribe ;-)
If they do this then everyone who gets penalised should be entitled to every penny they paid in paid back. How this would be legal I have no idea, its theft!
Fells like a class action coming
Paid Ni for 40 plus years on the assurance of a pension. If they refuse to pay out its fraud . Pure & simple. 12 million law suits.
Hi Harassed, thank you for your comment and for supporting the channel. Feeling that changes to the pension system might be unfair is understandable. If significant alterations are made, there should be measures to ensure those affected are treated fairly. However, legally demanding a refund of all contributions is complex as NI is just another tax to fund the Government spending plans and has already been spent. Please keep watching and subscribe ;-)
I’m ok with a means tested state pension. Can I have my NI contributions back please? 🤷♂️
No, because they call the shots.
Hi Banthah, thank you for the comment and for supporting the channel (and for the positive humour). Agreed - Please take a ticket and form an orderly queue - BTW I have sharp elbows so no pushing in! Please keep watching and subscribe :-)
You are getting your NI Contributions back - it's called your pension.
Your NI Contributions don't pay for your retirement. They paid for other retirees at the time you were paying them. People currently paying NI Contributions will be paying for current retirees. That's how the system works.
@@VinoVeritas_ well now, I stand corrected !
If this happens - then why the hell bother saving. Or even working? No incentive to do either. I'll just sit on my arse and hold my hand out.
This is why Gen Z ain't working. Work too much Soz ... no pension.
Hi Stuart, thank you for the comment and for supporting the channel. There must be an incentive for everyone to contribute into the system. Clearly, there are fewer people paying and working whilst there are more people claiming the state pension and living longer. The maths do not add up over the long-term. If the deficit keeps increasing, paid for by the Government, then how does this get repaid? More taxes? Please keep watching and subscribe :-)
Hi DC, thank you for the comment and for supporting the channel. I can feel the frustration and that is a response from many. However, we need to take responsibility for our own financial future and be prepared for any curve balls along the way. If you can foresee having less money in retirement, we should use that heads up as the trigger to save more so we can have the lifestyle we deserve. Please keep watching and subscribe :-)
A lot of people do that - and they're no-where near retirement age - called Dole Dwellers I believe......or you also have the economic parasites from abroad - also known as 'gimmegrants' !
Maybe that’s part of the plan, be subservient… you’ll own nothing and be happy 🤔
As my wife and I were never going to get anything other than mediocre company pensions to top up our state pensions, after both getting made redundant by the age of 50, with no prospects of ever getting decent work or indeed any meaningful work thanks to ageism we sold up in the south East and moved to a very modest house in the East Midlands, all our other money and one small inheritance was put into ISAs. These ISAs and tiny company pensions give us circa £4 kpa each on a drawdown basis, and will be just about gone by age of 90. If our pension is going to be cut on account of saving we will either buy a better or more convenient house leaving us with little savings or we will spend it down beforehand.
Buy some gold britannias.Hide them away.
Britain has the lowest state pension across Europe as it is!!!!!!!!! That idea is just bonkers, but it's an idea that I suppose will find political traction. The state pension is not enough for a person to live on per week. The minimum wage is between £5/6K more per year. So there needs to be a real and grown up debate on how to deal with that anomaly.
Hi Chris, Thank you for the comment and for supporting the channel. You raise a crucial point. Britain’s state pension needs serious attention despite being amongst the lowest in Europe. Minimum wage is £11.44 per hour x 37 hours per week x 52 weeks = £22K per year vs state pension of £11,541 per year. How do we redress the balance without breaking the bank and our backs in the process? An adult conversation indeed but are the current crop of politicians willing and able? Please keep watching and subscribe :-)
@Economese my rent alone is £14,400 a year imagine paying that with state pension. It would only leave the person on minimum wage with just over £7k to pay for bills and food.
that is why it is the richest country in Europe
Its simple as this.If they decide to do this I will be contacting my MP and they wont dont dare do this. There testing the water by putting rumours out....Bring it on but give me back all my Ni contributions at higher tax rate please for 37 years.
46 years I have contributed. I think it is apauling..
state pension roughly £11,000 a year, by increasing qualifying age from 65 to 67 recently the government have already taken £44,000 pounds off me and my wife.
Hi Jh, thank you for your comment and for supporting the channel and for sharing your personal story. Thsi highlights some of the financial stresses on the state pension. The Government policy is to raise retirement ages, rather than means-testing the system. When the retirement age is 68+, how many other couples will have to accept paying into the system for more years only to claim for fewer years? Please keep watching and subscribe ;-)
Means testing never works and is impossible to administer. Once again if they try to implement it will be those who have never worked and have no private pension that will benefit.
It isn't impossible to administer but it is expensive and open to fraud due to people failing to declare income and capital they have - sometimes deliberately and sometimes in error.
Hi Bethers, thank you for your comment and for supporting the channel. "eans testing is often complicated and inefficient to administer. Implementing it for state pensions could unfairly benefit those who have never worked or saved privately, while penalising responsible savers. The Australian system, with its combination of the Age Pension and superannuation, successfully supports retirees with means testing. There will be a lot of resentment as well if implemented as it will be deemed unfair. Please keep watching and subscribve ;-)
Disgraceful. People save for reoairs to their homes. It is robbery. People paid into state pensions.
Hi Isherwood, thank you for the comment and for supporting the channel. Taxing pensions can feel unfair, especially when you've saved responsibly. People rely on these savings for home repairs and other necessities. It's important to recognise that people paid into state pensions expecting security in retirement, and additional taxation can feel like a breach of that trust. Your concerns highlight the need for a fairer approach to pension taxation and the state pension specifically. Please keep watching and subscribe :-)
Basically ur better of going on benefits for most of your life. Like some people I know cos they thought it was their right. If you work hard and have savings you will be punished. Don't think it can getting worse
Well said !! work does not pay.
Naahh...4 kifs , single , of course, this person would never get a nett income better than benefits
....housing allowance being perhaps the big one , esp. in the S.E.
Yeah when i was younger a lot of girls would deliberately get pregnant and say i want a council house and pay nothing. But the likes of you and me having the pleasure of paying for them what a lovely system @normanpearson8753
Vote reform UK to stop this happening please!!
Hi Cliff, thank you for your comment and for supporting the channel. Relying on benefits might seem easier in the short term, but it can limit your financial independence and opportunities in the long run. Working hard and saving, despite the challenges, builds financial security and resilience and less reliant on the State. Self-esteem and respect don't have a value attached to them. Please keep watching and subscribe :-)
Just spend all your money and then they can’t take it away..or take it out in cash and hide it.
Cash is useless if they bring in CBDC. Unfortunately I think it may be part of the plan.
That's why Baby Boomers are cruising!!!😮
Hi David, thank you for the comment and for supporting the channel. I am afraid that we might sleepwalk into a digital currency world and cash will be a thing of the past. Please keep watching and subscribe. :-)
UK state pension is already means tested via the progressive tax system, so recipients of higher pension income, including State Pension are taxed more. Alternatives of stopping State Pension for those who have contributed to it their whole lives would never be forgotten by use senior voters.
Hi Mushroom, Thank you for the comment and for supporting the channel. You make an excellent point. The progressive tax system already ensures that those with higher incomes pay more, including on their state pensions. Preserving the state pension for lifelong contributors is crucial for maintaining trust and fairness. We should be able to focus on enhancing the system without compromising the benefits retirees already rely on. Is the social contract about to be rewritten? Please keep watching and subscribe ;-)
Underrated comment. Hasten to add that if more individuals have been auto-enrolled then the present day, there may be a larger proportion of the population being taxed via the progressive tax system (which could contribute to funding the state pension).
@@Random_Musings-z5x The state pension is only funded from NI contributions although if they are insufficient to cover the cost in any year the deficit is topped-up from general taxation. It's been many years since a top-up was required.
VOTE THE BUGGERS OUT .
Hi Susan, thank you for the comment - I think the UK population may be listening to you and paying attention already. Please keep watching and subscribe ;-)
What's the point of working all those years paying ni contributions, going without to save a little for retirement or pay into a private pension if they are going take it from you. If you have paid into and have the required number of years everyone should get the same amount of state pension those who have not should get a slightly lower rate.
If you never work and live in a council property you are actually better off when you retire than someone who has worked all of there life.
Agreed
@@richardeggett392
@@richardeggett392could you please explain that in a bit more detail, I’m genuinely interested.
@@huskyhooligans999 I have a sister in law, she is retired even though she has never worked since leaving school at age 15.she has never married but has 3 grown up children. her sister another sister in law, worked all her life, she was married her husband died in his 40s, they had a mortgage, she worked 60 hours a week to pay the mortgage and support her kids, when she retired she found that because she owns her own home she does not qualify for extra benefits, her sister gets extra pension credit free dental treatment and free glasses. the other one does not qualify for pension credit free dental or free glasses because she owns her own home. so if she had never worked she would be better off now,
@@richardeggett392 even better, if you just rock up in a dinghy claim your an asylum seeker then everything is free.
Any form of means testing that doesn't take account of the value of an owned home is highly discriminatory to people who have the same amount of wealth but choose to rent and invest the capital instead. I'd rather have the flexibility renting and the liquidity of funds invested in a portfolio than have everything tied up on a home. How can retirees ever spend the equity in a home without selling it and moving to rental?
Hi Adm, thank you for the comment and for supporting the channel. You raise a valid point about the potential discrimination in means testing that excludes the value of owned homes. This approach can unfairly disadvantage those who choose to rent and invest their capital elsewhere.
One potential solution is to consider equity release schemes, which allow retirees to access the value of their home without selling it, providing financial flexibility. It's important that any means testing system accounts for different forms of wealth to ensure fairness. There should be an approach to pension means testing that recognises various asset forms and promotes equity for all retirees. Please keep watching and subscribe :-)
Good luck with finding somewhere to rent with current policies on immigration. UN Agenda 21 encouraged cultural diversification. Tony Blair supported it. Socialists love it as immigrants overwhelmingly vote left. It also makes it easier to control the populace.
Hi, So this would encourage not saving.
Not a good idea.
Take care M.
Hi Mark, thank for the comment and for supporting the channel. A means-tested state pension discourages saving because people fear that their savings will reduce their pension benefits. To encourage saving for retirement and increasing private savings and investment, there should be more tax incentives, employer-matched contributions, and financial education to highlight the long-term benefits of personal savings for retirement. The system is creaking so we need to be ready should this ever come to pass. Please keep watching and subscribe :-)
That's what Labour want. That way they control everyone's income and therefore their lives
cbdc will maybe not allow you to save....time limit on you money then gone if not spent.all possible in the future
Labour will bring this in as they are a Party of Means Testing !! The triple lock will only apply to those on Pension Credits along with Winter Fuel payment. They will also increase TAX on any savings or investments but do not worry as the Money will go to the poor who Won't Work can't Work and no intention of Working..
A tax and spend party , O.K. , if we habe a booming economy , but......
Also will we have our unchecked illegal immigrants contribute into our society !!! Very doubtful
Hi Robert, thank you for your comment and for supporting the channel. Labour's manifesto emphasises protecting the triple lock and supporting pensioners, but concerns about means testing and increased taxes on savings are valid. We should give them the "benefit" of doubt and judge on performance. Please keep watching and subscribe. :-)
It not fear I work 50 years pay my tax and N/ and still pay tax as a penisoner i and why can’t pensioners have a little bit of savers it wrong the government needs to sort the thousands who not working and make them work for the money.
Hi Gladys, thank you for your comment and for suypporting the channel and sharing your story. After working and paying taxes for 50 years, it's frustrating to still face financial challenges as a pensioner. It's important that the Government recognises the contributions of retirees and allows them to save without penalty. I am more concerned about the younger generation who may not get to enjoy a state pension in the current format. Please keep watching and subscribe :-)
Problem is some people might retire early on the basis of company pension plus state pension. Those people may have stayed in work if they had known that state pension was going to be scaled back or fully taken away. But once they are in that over 55 age bracket it’s likely too late to get back into the workforce at a level that will allow them to cover the shortfall. I really can’t see it happening unless with a huge lead time.
Hi David, thank you for the comment and for supporting the channel. It's understandable that changes to the state pension system can create concerns, especially for those nearing retirement. However, means testing the state pension could help ensure that resources are allocated fairly and sustainably, providing more support to those who need it most. There is a 10+ year timeframe about state retirement age increases but more time might be needed for such radical means tested changes. That said, the system is not sustainable in the current format. Please keep watching and subscribe :-)
Governments don't tend to think long term. Most individuals don't intend to be around when the chickens come home to roost. It's why kicking the can down the road is such a popular tactic.
In Australia we also have Superannuation where workers allocated pay rises to be paid in every pay day but not accessed until retirement. Now the Government keeps eyeing this massive pot of workers money and are trying in every devious way posdible to getbtheir grubby hands on it❗😕😡
Hi DOwn, thank you for your comment and for supporting the channel and sharing your knowledge. The superannuation is a vital part of Australians' retirement savings, built up through years of hard work. It's crucial that this money remains secure and solely for the benefit of retirees. Any Government attempts to access these funds should be met with strong opposition. Let;s hope it doesn't happen - keep me posted. Please kepe watching and subscribe ;-)
State Pension is a benefit that is paid for by all who pay National Insurance payments. For this reason, it should not be means tested. Those that do not need it could be encouraged to pay into social funds to benefit those in need. They could be offered a choice of different funds, even locally managed funds. A tax break could be offered as an incentive.
Hi Sue, thank you for your comment and for supporting the channel. There does need to be a different approach to pension reforms and a system to help those genuinely in need and not just gaming the system, should always be considered. Tax breaks for those who are contributing to others is also a good idea too. Please keep watching and subscribe ;-)
Here’s a deal give me back all of my NI contributions and I’ll rescind any claim to a state pension
Hi Jason, thank you for your comment and for supporting the channel. I think there are several people in the comments who would gladly do the same. Opt-out and let us invest the money elsewhere. As the NI has already been spent that might not be an option though - sadly. Please keep watching and subscribe :-)
What needs to be investigated is do any the Mp,s & Top civil servents have any links to the Pension companies that would profit massively from means testing of the state pension. ? Lobbyists offering seats on the board or share options ?
Hi again Stuart, thank you for supporting the channel. I had not thought of that angle. It's important to ensure transparency in Government decisions. Investigating any potential links between MPs, top civil servants, and pension companies is crucial to prevent conflicts of interest. Scrutiny of lobbying activities and board appointments can help maintain public trust and ensure that policies are made in the best interest of all citizens - just like securing PPE?? Please keep watching and subscribe ;-)
@@Economese Just think how many millions to be made out of means testing pensions.for Mps & Top civil servents linked to special interests , Politics is a dirty business. Big Business pays lobbyists to advance their interests. If Pensions are compulsory & pension companies can charge whatever they like then it's pigs in the trough time. Ai companies that track the bank accounts will also profit massively. As an indication of just how much money is to be made out of advanced computer Ai Technology. Track n Trace cost 37 BILLION. K. Ching k Ching K Ching.
Retire early with private pensions, savings, investments then hit pension age with zero to claim full state pension.
Hi Gareth, thank you for your comment aqnd for supporting the channel. Retiring early with private pensions, savings, and investments is a smart strategy. By the time you reach pension age with minimal assets, you can claim the full state pension. This approach maximises your financial benefits while ensuring a secure retirement. I think the reality will be different though as they will need to communicate this change 10-15 years in advance so people can prepare ahead with confidence. Please keep watching and subscribve ;-)
What about those of us who continue working in order to pay a mortgage and I still pay tax too. If they take the pension I'm pretty well buggered there as I won't be able pay the mortgage. AND I'm one of the women who lost out when they stopped paying the pension at 60. If they do this they are thieves and criminals as THEIR pensions wont be affected.
We won't forget either.
By the way, £50 scarcely touches the sides.
I bet they won't help towards the mortgage which used to be done many moons ago.
I'm in the same boat!
Hi L, thank you for the spicy comment and for supporting the channel. All comemtns are welcome here so long as they don't violate any CZcams useage policies. I understand your frustration. Continuing to work while paying taxes and a mortgage is very challenging, especially for those who lost out on earlier pension benefits. I read that the political parties ar elooking to resolve the WASPI issue soon so i hope you get a positive outcome after campaigning for so long. Please keep watching and subscribe ;-)
Somebody has to pay those hotel bills !!
Hi Alan, thank you for your commnt and for supporting the channel. According to the Home Office Media, the UK Government is currently spending approximately £8 million per day to house asylum seekers, including those who have entered the country illegally. This figure represents a significant burden on the taxpayer, amounting to around £1.5 billion annually. That is a lot of state pension. Please keep watching and subscribe ;-)
If its implemented, would just be another government cash grab on those those work hard and sacrifice throughout their lives. So likely to happen as that's the direction of travel.
Hi Phil, Thank you for the comment and for supporting the channel. It could be another way of "redistributing" wealth across society. The financial shortfall is a growing burden each year with more people retiring, living longer and fewer working people paying NI. Make sure you have enough private provision and be prepared. Please keep watching and subscribe :-)
@@Economesesorry but this does not make sense. When you have a public sector pension like me that has had the retirement date moved back effectively stealing thousands from me. Then the NI that I have contributed to everyone else’s pensions isn’t taken in to account. This would be a betrayal of the contract between government and the people. That betrayal is effectively treason.
buy gold and silver for your retirement.
A part of the CBDC is blockchain technology. EVERYTHING anyone owns will need to be tokenised (placed onto the blockchain) in order to prove that you own it. If it isn't tokenised you cannot sell it. This is the "you will own nothing..." part of this dastardly plan.
Hi Puja, thank you for yor comment and for supporting the channel. Make sure you have a diversified global portfolio across countries, companies and sectors, low cost and liquid as well as having gold and silver as alternatives. Please keep watching and subscribe ;-)
Aussie Politicians are exempt from the asset test for their pension.
Funny that
Hi User-ph, thank you for your comment and for supporting the channel as well as bringing this to our attention. It's true that Australian politicians have a different set of rules for their pensions, often exempting them from the asset test that applies to the general public. This discrepancy raises questions about fairness and equality in the pension system. No surprises there :-( Please keep watching and subscribe for financial wisdom and fairness for all ;-)
When I was paying in for 35 years it was not called a benefit it said to be for our retirement. Only recently have slimey politicians started to call our pension a benefit. If we are not to get a pension we were mislead and deserve our NI payments back!.
Hi Neil, thank you for your comment and for supporting the channel. It was legally defined a benefit under the Social Security Contributions and Benefits Act 1992. Some benefits are already means tested in the UK which I alluded to in the video. Time will tell how the state pension will evolve. For now, the preference is to keep increasing the state pension age for those can can still keep working to that age of course! Please keep watching and subscribe ;-)
People have factored the state pension into their plans and it would make a big difference to many including me, my private pension will top up the state pension so my wife and I won’t suffer a large drop in income and standard of living when we retire.
Hi John, thank you for the comment and for supporting the channel with sharing your story. You have thought ahead with discipline and sacrifice to provide a better retirement for you and your wife. This channel is dedicated to ensure others make the same informed and positive decisions. It's crucial to recognise that many people, like yourself, rely on the state pension as a key part of their retirement planning. Ensuring its stability and sustainability is essential for maintaining the standard of living for future retirees. Please keep watching and subscribe ;-)
Looks like how unemployment benefits work in the UK not had a bean over the last 11 years.
It would put us into poverty I believe and be of benefit to those who haven't worked all their lives.
Hi Anthony, Thank you for the comment and for supporting the channel. I understand your concern. Means testing the state pension should be designed carefully to ensure it does not unfairly impact those who have worked hard all their lives. The goal is to create a fair and sustainable system that supports those in need without pushing others into poverty. It's essential to advocate for policies that protect and reward lifelong workers paying NI while ensuring a safety net for everyone. Please keep watching and subscribe :-)
The Australian state pension is nothing like the uk state pension, it is means tested but it’s been like that since 1960, indeed it was means tested even before that but it had a significant change in 1960. It’s far more complex and totally different system than we have in the uk and employers are expected to provide what we would call finally salary pensions to their employees in many cases, these are largely gone in the uk. To suggest the means tested portion of the Australian system as an example of a potential change is a gross oversimplification of what the change would actually need to be implemented if they really wanted an Australian style pension system to replace what we currently have. Australia never had a system like that in the UK in the first place.
Hi Thomas, Thank you for the comment and for supporting the channel. You're right. The Australian state pension system is indeed very different from the UK's and has been means-tested for decades. Their approach, which includes employer-provided pensions, is more complex. Using Australia as an example oversimplifies the potential changes needed in the UK, but can be used as inspiration or as a base or foundation. Instead, we should focus on tailored solutions that consider our unique context, demographics, economy, business and other pressures such as longevity. We need to push for informed debate on how best to reform our pension system to ensure security and fairness for all retirees. Please keep watching and subscribe :-)
However those compulsory superannuation payments made by an employer are paid into a superannuation management type account, often run by banks or insurance companies and the end result is dependent on how well these funds do in the market place, not final salary related.
The complex system here in Australia provides emo
ployment for bureaucrats and very high fees for fi ancial advisors and accountants. Also the union sponsored superannuation funds provide directorships for defrocked politicians if left wing persuasions.
Not surprising since so many politicians have gheir own scheme and are ghemselves party hacks, defrocked lawyers and accountants. 😅😂😮
@@Economesebase rate age pension in australia is aus $1050 PF add ons too numerous to mention people who have never worked get age pension
😊income support is not taxed why are you talking about the state pension being taxed you said it’s a benefit
I paid National Insurance contributions for 40yrs on the basis that my contributions were going towards paying my state pension. It is not a benefit it is a pension. This is what I was told at aged 18yrs; during my time working at Department of Health and Social Security awarding widows' pensions in my 20s; and when I retired at age 60yrs. At no time was it referred to as a benefit. 'Benefits' were supplementary payments for lower income groups and for those with disabilities etc. The problem lies in the fact that successive Governments over the years have robbed our pension pots to pay for other things and now there is no money left to pay our pensions. That is their problem and not ours. Funny how the UK Government can always find money to fund wars, usually against the will of the majority of UK residents!
Pay nowt in get nowt out. 10 million immigrants since 1997!! That's why the workers are shafted again.
If you look at the amount of people who have payed into the pension system for years and die just a few years before they are due to get any money back at all I think it must be at least 30%
Hi David, thank you for your comment and for supporting the channel. That is a shocking statistic which I could not believe. However, statistics show that around 30% of people die before reaching retirement age, meaning their pension savings do not directly benefit them (source: ONS Office for National Statistics). There is no pot for us as the state pension is a Pay-As-You-Go system. Sadly, this is used to lower the funding gap with nothing to a spouse or partner. Please keep watching and subscribe ;-)
If you earn more, you pay more in NI contributions but you can only receive a maximum amount at payout. Something many folk ignore or are blissfully unaware of
Hi Pick, Thank you for your comment and for supporting the channel. It is true that higher earners get the same level of state pension. Should they get less as they are wealthier or get more state pension as they have paid more into the system? Please keep watching and subscribe ;-)
Quite correct. The abolition of the earnings-related additional pension for those reaching state pension age after 5 April 2016 was a bad error in my opinion. Before that started in the 1970s NI contributions were all at a flat rate per week rather than a percentage of earnings.
i very much doubt this would ever happen, impacting on the grey vote in such a negative fashion, and also when we have one of the lowest state pensions in the developed world, pretty much guarantees the party implementing this is losing the next election.
Hi I receive pensions but I pay tax the more pension I get the more tax I pay - so its already means tested
Hi Anthony, thank you for the comment and for supporting the channel. You’re right! Pensions are already effectively means-tested through taxation. The more pension income you receive, the higher the tax you pay. This progressive tax system ensures that those with higher incomes contribute more, making additional means testing unnecessary and redundant. If the state pension was actually means-tested and perhaps you got less state pension as a result, you would also pay less income tax - which option would you prefer? I can foresee a lot of resentment around this subject for years to come. Please keep watching and subscribe :-)
Yup, I’m in this category too, I am privileged enough to have taken early retirement and already pay a substantial amount of tax, however it does not sit well with me that my taxes would be paying for others state pensions whilst I may be not eligible due to means testing… not right, not fair and definitely not acceptable.
The point is , in future some people will have less money to be taxed , as their other assets puts them as too well off to be paid a State Pension
Since the pension ( mini ) crisis during the Truss premiership cost me one third of my pension fund ( age 60 ) I was planning to retire as soon as possible, but at least if they bring in means testing of the state pension, I'll now fall under the threshold. Thanks Liz!
Every cloud !!!
Same thing happened with my husband’s pension. It has since recovered partly but will never get back to where it was because of course at the age of 63 it’s now invested in ‘safe’ areas which are low risk but also low growth. I very much hope anyone living in Liz Truss’s constituency doesn’t vote her back in.
Hi Usercb, thank you for yor comment and for supporting the channel and sharing your story. If the pension was invested in the financial markets, they should have recovered since then as markets are at or close to their all-time highs. That said, I'm sorry to hear about the impact on your pension fund during the Truss premiership. It's a tough situation and I hope you now have the funds to retire fully. I doubt means testing will affect those clsoe to retirement, but more focused on the younger genreration. Please keep watching and subscribve ;-)
Hi Julie, thank you for your comment and for supporting the channel and sharing youyr story. Sometimes lower risk funds are invested in bonds and fixed interest which perform badly when interest rates rise like they have done. I covered this in the auto-enrolment video. Interest rates are currently on hold at 5.25%. I hope you get to enjoy a dignified retirement together. Please keep watching and subscribe ;-)
well we are allowing vast numbers of boat people in who are uneducated and will probably never work so someone has to pay for them
Hi Agi, thank you for your comment and for supporting the channel. Immigration is a complex issue. While some immigrants may initially need support, many contribute positively to the economy over time. Studies show that immigrants often fill essential jobs, pay taxes, and help address skill shortages. I read figures that we have 600,000 emigrate each year so we will need 600,000 legal immigrants to meet the shortfall. Illegal immigration is another matter outside the scope of this channel. Please keep watching and subscribe :-)
I find it amazing that only 275,000 new claimants or new retirees are claiming their state pension per year. Considering that this year is the 1957 cohort when there were around 682,000 live births, it leaves we wondering where the other 400,000 have gone. I'd expect it to be less through early deaths, emigration and late retirees but not by 2/3.
Hi Nod, thank you for the comment and for supporting the channel. I appreciate the comment so we can all learn together and I was unaware of this cohort. The discrepancy you noted between the number of new state pension claimants and the birth cohort can be attributed to several factors. Many people retire later, emigrate, or pass away before reaching pension age. Additionally, some may not claim their pension immediately due to continued employment or other income sources.
In 2023, there were approximately 12.7 million people receiving the state pension, with the number of new claimants annually being lower due to these factors. This reflects a complex interplay of demographics and individual choices impacting pension statistics. I have taken an average of retirement statistics and erred on the cautious side of retiree increases. Please keep watching and subscribe :-)
I am totally opposed to StatePension means testing. We worked most of our lives for low wages and never had the opportunity to save much. When our kids left home we scrimped and saved to purchase our ex council property because we feared not being able to afford to pay rent. When we did retire we had our mortgage cleared. We realised that we would need to keep saving incase we needed new windows new roof or any other repairs. If they means test us will they take into consideration what our savings are for or will the punish us for being responsible by removing money from our State Pension which at the moment is £883.67 a month for me and £825.42 for my husband, our outgoings are £1484.00. We don’t go on holiday we don’t smoke or drink alcohol. We spend extra money on our garden and our children and great grandkids.Why can’t we just be left in peace to enjoy the little we have without the fear of being plunged into poverty yet again. I feel like we can’t move forward without the threat of being dragged backwards. After paying into the system for over 50 years I expect better than this. PS We are still paying full Council Tax😢
Labour will add mean tested pensions. Stick with conservatives or reform.
Hi Ab, politics and economics are intertwined for sure. Whatever the political colour, changes will be needed. Make sure you have a retirement plan and importantly a "Plan B" just in case. Please keep watching and subscribe :-)
Many people want means testing .With small pensions , firm and State , they've nothing to lose , and may well gain .
The Australian system is totally different from the UK.
Compulsory employer paid superannuation at 11.5% of wages/salary.
No capital gains tax on primary residence.
Tax offsets for property investments known as negative gearing.
Downsize family home and transfer $300k to your superannuation fund.
There is no tax on pensions when you reach the preservation age of 65.
Only 15% tax on earnings on pensions above $ 3 million.
Investment dividends where tax has been paid is tax exempt in your hands. Known as dividend imputation.
Hi Geoffrey, thank you for your valuable insights and for supporting the channel. While the Australian system has its benefits, such as compulsory employer-paid superannuation and tax advantages, it's important to note the differences from the UK system.
The UK lacks compulsory employer contributions at the same level and workplace enrolment is optional with contribution levels of a minimum of 8%. The state pension is funded through National Insurance. If you have more details of the Australian system, please email me at simondrake07800@gmail.com Please keep watching and subscribe ;-)
Would be End of THAT Govt . Forever , State pension is paid from Every Paypacket N. I. Deduction . It's a Right, & WOULD BE HIGHER IF UK Govt . WASN'T STEALING OUR PENSION MONEY for over 30 year to Pay of National Debt.
Hi Douglas, thank you for your comment and for supporting the channel. I understand your comment but the state pension is a benefit and was classed as such in 1992 and it has to be claomed as with any other benefit. Your deduced NI has already been spent. While it's true that state pensions are funded by National Insurance contributions, it's important to understand that NI also funds other critical services like the NHS and various social security benefits. I think the cost of servicing the national debt was £140 billion last year - shocking. Please keep watching and subscribe :-)
@@Economese NI was never Intended to Pay OFF National Debt, If Govt. Had tried Stealing it back @ the Begining of NI they'd have been Lynched. NI was a Voluntary Contribution back when it started..
This cant be landed on us suddenly, it has to be phased in. Anyone starting work when the scheme begins will be told they wont get a pension if they earn too much money. then lets see what happens. While for the rest of us who are still or already contributed into the system must get paid a pension as promised. End of debate.
In a capitalist country you want people to start businesses , employ people & create wealth but telll them if they do their wealth is stolen at retirement. Wow ! Any takers ? Thought not
Hi User DO, thank you for your comment and for supporting the channel. Your point about phasing in changes to the pension system and honouring existing contributions is crucial. Any new pension scheme should be phased in gradually. Those starting work under the new scheme will be aware from the outset about the conditions, including income thresholds affecting pension eligibility. The lead time should be 10-15 years so there is no excuse for not understanding the future changes. Please keep watching and subscribe :-)
What do you expect from commis. Perhaps they should tax robots and ai and the corporations that use them instead of employing human beings
Hi Sean, thank you for the comment and for supporting the channel. I did giggle when I read your comment! As AI is transforming the way we work - and it is the worst it's ever going to be - with exponential growth in the future - that might be a good idea as corporations could replace many of us in the not-too-distant future. This approach could ensure that the benefits of technological advances are shared more equitably without discouraging innovation? Please keep watching and subscribe ;-)
Could see this coming a mile off, these smarmy bastards will do anything to weasel out of paying up
We can't go on paying more and bigger pensions ....be fair.....something's gotta give .
Be fair? *There is nothing fair about this* .@@normanpearson8753
@@normanpearson8753 It's the lowest pension in the western world & we can't afford that. Do me a favour.
Hi Stuart, thank you for supporting the channel. The UK state pension is relatively low compared to other developed countries. According to various sources, the UK ranks 25th globally in terms of state pension payments. The maximum UK state pension will pay a total of approximately £958.53 per month in 2024. Please keep watchng and subscribe ;-)
State pension is not a benefit it is alright which you have worked all your life
Hi Bubble, thank you for your comment and for supporting the channel. The state pension is indeed seen by many as a right earned through years of hard work and contributions into the system. However, it is legally classified as a benefit under the Social Security Contributions and Benefits Act 1992. While it may feel modest, it is a crucial support for many retirees who have contributed throughout their working lives. Please eep watching and subscribe ;-)
So what have the goverment done with our money? Million/billionaires make money out of investment! Who do we hold to accoubt ?civil servants?
I'm a millionaire. I didn't squander money on smoking, gambling or drinking. I educated myself , invested in a business. Worked 70 hours a week giving employment to others and paying high levels of tax. NI is a tax.
You make your choices in life, so suffer the consequences and don't rely on others hard earned.
@@geoffreystone4849 I think you're missing the point. We automatically pay NI as a workforce, unfortunately not everyone is as intelligent or educated like yourself, even billionaires rely on a workforce, but the point is most ordinary working people had to pay this hidden tax known as NI on the basis that they would receive a retirement income in their retirement years, now it maybe taken away! Imagine the government saying you have to lose all your savings or most of it, you'd be the first one to moan and complain, so why shouldn't those who have paid in to the system complain. I hope you get to keep every penny you have but don't look down your nose at others, its a long way down when you're at the bottom! And this is coming from a non smoker, non gambler or drinker!
@Harassed247 I didn't miss the point I left school at 15 in the UK and paid NI. One of 8 kids in a poor district of Tottenham. The NI paid was understood to give a universal pension. When the money was taken there was no expectation it wouldn't be given back when one retired.
If the socialists want to change the rules it should be on new contributions from the date they implement the change NOT for past contributions.
Government see the amassed contributions as the honey jar they can use to garner more votes for Labour. After all they classifier all poorer people as likely left wing voters.
Hi Julia, thank you for your comment and for supporting the channel. The Government uses taxpayer money to fund a wide range of public services and investments, from healthcare and education to infrastructure projects and social security. That is nto to say that this money is spent wisely or even efficiently despite the intention of improving our standard of living and public services. We hold the Government to account at the General Election and in local elections, but it seems a lot of the UK is broken and not working as it should. Please keep watching and subscribe :-)
Owned asset of main residence means that I pay a 1/4 of my pension directly back to the consolidation fund to pay for government spending sprees, via council tax which they set at. £3200.
Hi Gway, thank you for your comment and for supporting the channel. I know it is frustrating when a significant portion of your pension goes towards council tax, especially when it feels like it's funding Government spending. However, council tax is used to fund essential local services such as education, waste management, social care, and public safety as well. It will be fascinating to see if there is council tax band valuation review as the current system was based on property values in 1991 - so it is likely that they will increase further - with more potholes! Please keep watching and subscribe :-)
@@Economese I live in a smallish council area and there is very little being done here, BUT those that work for the council are VERY well paid for what they do the CEO £150000pa CFO130000 and various different grades including a diversity and inclusion executive, loads of them and each one has larges salaries an other benefits which come from my tax and 50 other people just to pay that one ‘Brother’ and so on down the scales. They do don t do anything for me but get a salary that reflects a ‘very. Successful,business’ but it isn’t it is a sinking organisation that runs for their major benefit.
Means testing should not be the way to go, but pensions will become unaffordable at some point. Perhaps the best way to go is to freeze the state pension at some point with plenty of notice. The auto enrolment needs decades to build up the funds to retire, so at some point pensions could be frozen and drop overtime in spending power. Anyone not having enough to live on when this happens could get benefits, which are obviously means tested.
This way there is a transition period over many many years until the spending power of the pension has deteriorated due to inflation.
If working & saving means no state pension . Would a lot of people not stick 2 fingers up & not work ?
@@stuartregan1627 maybe, but a solution needs to be found or the taxes the younger working people will have to increase to pay for the pensions. If pension costs double it will be the young workers that already cannot get close to buying a house that will be paying for the pensions. Pensions will become unaffordable at some point, I simply suggested a transition state rather than simply making pensions suddenly becoming means tested as older people have already planned their retirement.
@@user-xu8mt3hw3b Yeah I agree . But encouraging people to work & save less will make GDP worse not better . Under the Madness of means testing , people who work hard & save get a reduced pension, if they work really really hard they get no state pension at all.
Is the implementation of means testing not economic insanity ?
@@stuartregan7219if I know I’m getting means tested if I reach a certain threshold then my motivation to reach the certain threshold is gone.
Taxation seems the only fairer option to wealthy pensioners getting state pensions.
Hi UserX, thank you for the comment and for supporting the channel. Freezing the state pension with advance notice is a pragmatic approach. It allows auto-enrolment to build retirement funds over time. As the pension’s spending power gradually reduces, means-tested benefits can support those in need, ensuring a smooth transition and encouraging long-term saving. For example, when you get to 35 years NI, you don't pay any more NI for the state pension - so you pay less NI allowing to reinvest this additional money elsewhere. Please keep watching and subscribe :-)
I really cannot see means testing of the State Retirement Pension anytime soon. The cost of administering such a scheme would be ferocious. It is frankly easier simply to increase the age at which people can take it.
Changing the Triple Lock so that the middle of the three would be used would make more sense. Currently, with a minimum of 2,5%, the cost can only ever increase for the State.
Simon seems to think AI can investigate & interview the pensioners that get red flagged . Even if only 1 % are red flagged then it would take vast resources of labour from the DWP into the billions . 12 Million plus pensioners. Then of course the Ai that has been developed to moniter bank accounts . Is that free ? Track n Trace cost 37 BILLION. Again another plan thought out on the back of a fag packet. All the costs associated & means tested can easily be mitigated by a millionaire who simply parks his wealth offshore out of UK Jurisdiction.
Hi John, thank you for your comment and for supporting the channel and for your insights. I agree that means testing the State Pension would be costly and complex to administer. Raising the pension age is a simpler alternative and is the preferred option at this stage. Adjusting the Triple Lock to use the middle value of the three indicators (inflation, wage growth, or 2.5%) could help manage costs more effectively while still providing a fair increase for pensioners. Please keep watching and subscribe ;-)
Since when does a benefit give someone the right to pay for years that are missing from their contributions to gain a full pension. I was a single parent for many years. I went back to work. I owned my own house. I had no handouts from the state and I paid full contributions for the whole of my working life. I did not go out on the town enjoying myself and I did not go on any holidays. So do the people claiming other state benefits at this time get asked to pay for missing years of payments before they can receive the full benefit amount and do all the immigrants get benefits and pensions paid to them? We have many UK people living abroad still being paid a state pension. These pensioners had the yearly increase if they lived in the EU but the UK did not benefit from these pensions being spent in the UK. If pensioners did not move to an EU country then they did not get any increases after they moved to their new country. Have the increases stopped now we have left the EU or is that another blunder by the Government? This needs far more thought than the knee jerk reactions that is being used by a Government that has been totally useless at budgeting. Current and past governments have been disgraceful at using money wisely which means that they have squandered the taxes that we have paid them so now they want us to pay again. I met my husband and got married in 2007. We both had a property and we had both worked like mad to achieve this. We hit the recession and lost all our interest on our savings (money given to all those who lived it up and got into debt) so we bought a buy to let. We worked hard to do it up and have treated all our tenants in the way that we would wish to be treated. The government have now started to tax us to the hilt even though we have paid for all that we own with already taxed money. We did not sit and moan but set about getting round a problem. We are not rich by any means but now we feel as if the Government will not be happy until we are in poverty and claiming government assistance. We need a Government that has common sense both with money and with working out what is the best direction. It has to be remembered that Keir Starmer and Rishi Sunak are both extremely wealthy people who certainly do not know anything about poverty or the working class other than if they get too big for their boots take away their state pension and put them on real benefits.
Hi Lynne, thank you for the comment and summary of the current situation as well as supporting the channel. I can hear and understand your frustration. It's disheartening to see those who’ve worked hard and saved being penalised, while others can fill gaps in their contributions through benefits. Immigrants and benefit recipients should be held to the same high standards. The inconsistency in pension increases for UK pensioners abroad, especially post-Brexit, needs addressing. But that might be a long wait unfortunately. Overall management by successive governments has led to unfair taxation on those who saved responsibly. We need leaders who truly understand and support the broader society and wise use of taxpayer money - I won't hold my breath just yet. Please keep watching and subscribe ;-)
Pension is NOT a benefit , its a savings plan, paid in over 40 yrs of hard graft, the more you pay in, the more you deserve (avc’s) and paying IN less should entitle you to less . Stop rewarding stupidity and penalising those who think ahead and plan to support their retirement years themselves.
Wrong. Most people pay far less in national insurance than they take out in a pension. My last year of work I paid £2000 in NI, now I receive over £11000 state pension. On average if you live longer than 8 years after state pension age you get back more than you paid. It is not a 'savings plan' your NI contributions are not saved or invested. The state pension is unsustainable.
Technically, the pension was classed as a benefit as of 2014. Furthermore, people who first received a pension back in the 1950s had not paid in, so it was founded out of the working population, exactly the same as today. ( in many ways it is a giant Ponzi scheme) However, the irony that the more you earn, the more tax contributions you make, and most likely the more provisions you make, the less you might get.
The law has treated the State Pension as a Social Security Benefit since 1973 when the Social Security Act 1973 replaced the previous National Insurance Acts. Section 9(1)(h) of the 1973 Act states that the retirement pension is one of the benefits in the system.
The National Insurance Act 1965 also considered the retirement pension was a benefit. I haven't got access to the previous National Insurance Acts of 1946 and 1957. The 1946 Act introduced the contributory state pension for all.
Before that state pensions had only been available to some people and initially they were means-tested. The original "Old Age Pension" introduced in January 1909 was 5 shillings (£0.25) a week for a single person and 7 shillings and 6 pence (£0.375) for a married couple but only available to a person with an income of less than £21 a year.
Hi Buddie, thank you for your comment and for supporting the channel. I understand your perspective that the state pension feels like a savings plan after years of contributions into the system. However, it is legally classified as a benefit under the Social Security Contributions and Benefits Act 1992 and forms part of the social security system and needs to be claimed like any other benefit. The amount received is based on National Insurance contributions, reflecting your working years. Those who think ahead should not be penalised, but praised and applauded instead. Please keep watching and subscribe ;-)
The state pension is already means tested - we either get Pension Credits or not depending upon our circumstances. This pension credit is a form of pension means testing. My prediction is that we'll be forced to drop the triple lock thereby reducing the increases in the state pension whilst at the same time allowing an increase in the value of pension credits. This way the Government (of whatever flavour) can continue with the myth that pensions are not means tested whilst diverting more money to those who need (not deserve) it more.
Hi Simona, thank you for the thoughful comment and for supporting the channel. Your point about Pension Credit already serving as a form of means testing is accurate. Pension Credit is designed to top up your weekly income to a guaranteed minimum level. For the current year, the minimum levels are £201.05 per week for a single person and £306.85 for a couple.The potential abolition of the triple lock, which ensures pensions rise by the highest of inflation, wage growth, or 2.5%, could indeed slow down state pension increases. Redirecting funds to increase Pension Credits might allow the government to focus more resources on those in need without openly admitting to means testing. However, this approach could risk widening the gap between those solely reliant on state pensions and those with additional income. This could be a new policy decision for Government. Please keep watching and subscribe :-)
Great Point. The people who put thousands of their hard earned money into their pension must be scratchings their head wondering why did they bother. Clear lesson if you save for retirement the Government will steal it back.
I wonder if eventually it'll just get all wrapped into Universal Credit as it's a benefit already.
There are so many little sweeteners like fuel allowance, tax credits etc. that I think it'll all just form part of a Univeral Basic Income of some sort in 20 years.
HI Roger, Thank you for the comment and for supporting the channel. t's possible that future reforms could streamline benefits into a Universal Basic Income, simplifying the system. This could ensure a more efficient and fair distribution of resources, providing everyone with a stable foundation. What is clear is that the state pension system is creaking and may need an overhaul. Please keep watching and subscribe :-)
I recently read about two people who retired on their state pensions & now homeless with one living in a camper van & the other sleeping in a tent because their state pension doesn’t cover the rent. If you include housing in our state pension not being one of the lowest state pensions in the developed world it’s already a poultry sum taking account of today’s cost of living. As the next generation of retires are going to be a nation of renters because others bought homes for their pension it’s a disaster waiting to happen. It could likely end up with those who invested in property losing their homes under compulsory purchase orders if the housing crisis for future generations of pensioners becomes a national scandal which is very likely imo. If anything for future generations we are going to have to come into line with other developed countries & pay a pension people can pay for a roof over their heads & feed themselves.
Hi Everything, thank you for your comment and for supporting the channel. The UK state pension is relatively low compared to other developed countries. According to various sources, the UK ranks 25th globally in terms of state pension payments (Euronews) (Express.co.uk). The maximum UK state pension will pay a total of approximately £958.53 per month in 2024. " understand your concerns, and it's crucial to address these issues. We need a state pension that aligns with the cost of living and supports basic needs, including housing. Looking at successful models from other developed countries could guide us in improving our system but that will come at a cost. Shoudl wealthier retirees receive less state pension with any surplus going to help tjhose people in your example? Ensuring that future generations have secure retirements with adequate pensions will require policy changes and out of the box solutions to the very real housing crisis. I have heard a promise to deliver 1.5m homes in the next 5 years - that's 34 per hour or a houe every 2 minutes!!!! Please keep watching and subscrive ;-)
The argument to remove the pension is financial due to the changing balance of earners and dependents. Surely therefore any reduction in pensions should be focused on those who didn't have kids.
Those who have had kids have provided the earners of tomorrow and paid a fortune to benefit society
Hi Mike, thank you for your comment and for supporting the channel. The argument to cut pensions due to the changing balance of earners and dependents seems misguided. Targeting reductions at those without children isn't fair even though they may have more assets to use in retirement. Everyone contributes to the system through their taxes and National Insurance, regardless of whether they have children. That said as a society we need to have more children as the fertility rate in the UK is down to 1.5 from the historic 2.4 (ONS). Without more children, who will be working to pay the state pension in the future? Please keep watching and subscribe ;-)
Another reason to keep cash so they can’t steal your hard earned pension from you
Taking us into a cashless society is part of their plans. All cash and assets will be tokenised and placed on a blockchain. We must resist - cash is king!
Hi Raymond, thank you for your comment and for supporting the channel. A robust financial plan for retirement, including a globally diversified portfolio, which will include cash, is important to give you more options and choices in retirement. In times of uncertainty cash can be King. Please keep watching and subscribe ;-)
Why would the Australian be used as a template, their system doesnt even look remotely similar to ours. They changed the basis of theirs in the 70's if i recall.
It sounds very much like scaremongering on your part, so its a bit disingenuous to suggest only a part of how the Australian system works, and how this "may" be applied to the UK system.
He's not scaremongering. Every other week there's a story in the media about the affordability of the state pension Do you think it's a coincidence that means testing story's appear regularly. It's not , it's called kite flying. Work too much & no state pension, live on benefits or save nothing then full pension. Gen Z know it ain't worth working & gaining wealth . Auto enrollment is a trojan horse to steal your pension.
Hi Grey, Thank you for the comment and supporting the channel. Australia’s pension system indeed differs from the UK’s, but it offers valuable insights. The UK financial services sector draws inspiration from Australia's successful superannuation scheme used as part of our current auto-enrolment pension clearly amended for our demographics, law, businesses and economy. Means testing can be part of a broader strategy to ensure fairness and sustainability and reducing Government borrowing to support the deficit. By learning from Australia, we can innovate and improve our own system to benefit all retirees, but it will be a brave decision. I think it might be disingenuous to believe that the current system can continue indefinitely without change? Please keep watching and subscribe :-)
Hi Stuart, politicians may only whisper it for sake of saying the awkward part out loud - it is getting too expensive to provide with more retirees, living longer, inflation + rises and fewer workers to pay NI. It's understandable to feel concerned, but auto-enrolment is designed to secure our future. While means testing stories can be worrying, they're part of exploring sustainable solutions. Focusing on saving and investing through auto-enrolment ensures a more comfortable retirement. Let's try to work towards a system that rewards hard work and savings for everyone. Please keep watching and subscribe :-)
Shouldn’t be means tested or devalued by locks. However, qualifying years need to increase to 40yrs and kick in to be 70yrs sooner.
They've got access to pensioners bank accounts and are reducing NI with the aim of getting rid of it completely so they can start to means test the state pension. They already refer to it as a benefit.
Hi Chrysalis, Thank you for the comment and for supporting the channel. While changes can be concerning, the aim should be a fair and sustainable pension system. There is legislation currently going through Parliament allowing more scrutiny on out bank accounts for assessing benefits and yes, the state pension is legally a benefit and part of the social security system. Please keep watching and subscribe ;-)
No they don't. They ask for your bank details to pay your pension in.
@@mark.e.pand you think they aren't going to snoop on your financial wealth - ffs wake up !
its not not a benefit its a right !!!!!!!!!!!!!!!!
@@Economese The legislation you mention was dropped when Parliament was dissolved before the forthcoming General Election.
The word BENEFITS is a game changer, I am near 68 and phoned the DWP the lady said you are receiving BENEFITS, I argued with her about the wording, this basically means we are all on the DOLE !, I said to the DWP lady I am going on a good overdue vacation, since working non stop since 1971, she relied back, and stated if your out the UK for a length of time you must let the DWP know or it could affect your BENEFITS, now you see how this crafty wording is controlling us, basically they could make us do voluntary work etc etc or make us sign on each month as it is BENEFITS, I hope you can see where this is going people…
Hi Ready, thank you for yor comment and for supporting the channel and for sharing your story. The state pension is part of the social security system and is legally defined as a benefit - with all that description entails. If you live abroad, you are unlikely to get inflation increases to your pension. It does feel like you need to be grateful for the sttae pension and that there could be rules attached in the future, based on your conversation with DWP. It makes sense to have additional pension saving and investments. Have a wonderful time away as you have earned it! Please keep watching and subscribe ;-)
@@Economese Thank you, I now live on my own, my 3 bedroom detached house has been paid off for 10 years now, plus I run my craft and design business mostly making and designing jewellery, us old school people know how to survive, I do not trust any politician gangsters and Freemasons in suits, and that is a fact. Keep up the good work.
No crystall ball here but I cannot see this happen without it being gradually changed over the course of decades. What I mean by this is that even if the government decides to do that tomorrow, they would be shooting themselves in the foot if they roll it out quickly and without giving people chance to adjust to it. For example, if they tell me when I was 16 that they will make my pension means tested in future so if I wish, I can keep the NI money instead (which I would likely invest anyway) then that would be acceptable. But even without that in mind, there are too many other reasons why this (if possible) isnt wouldnt be on the agenda.
Hi Kaizen, thank you for the comment and for supporting the channel. I would expect a lead time of 10-15 years to communicate these changes to the population. An opt-out could work with NI savings invested for the future may mean the state pension is more sustainable. I agree that any major changes to the pension system would need to be phased in gradually to allow people to adjust. Implementing such changes suddenly would be impractical and unfair. Clear communication and long-term planning are essential for any potential reforms. Please keep watching and subscribe ;-)
I'm a single person, in the job I do, frankly, not that many of us statistically live to retirement age, I personally doubt that I will make it to retirement, I have around 10 years to go, I've never married, got no kids, I have invested for my future, took out a private pension at the age of 18, managed to buy my property outright from a redundancy payout, I've managed to never borrow or be in debt, no credit of any description, all bills are prepaid, my home, car, motorcycle are all fully paid for, I also bought a lock up garage to store my vehicles when not in use, I go abroad once every other year, I don't have a huge amount in the bank, enough for a rainy day, I have never claimed a penny from the state, probably never will, although I have looked to the future, I don't think I will see any benefit from it
Hi Andrew, thank you for your comment and for supporting the channel and sharing your story. You've led a financially responsible and independent life, planning diligently for your future despite the challenges of your job. While it's frustrating to feel you might not benefit from your careful planning, your investments and savings provide security and peace of mind. Even if you don't claim state benefits, your prudent choices ensure you won't be a financial burden and can maintain a good quality of life - and that sounds like a better future than many. I think that 14% of perople in teh UK die before state retirement age which is currently age 66. A bigger concern is that many will not enjoy good health in retirement and may need extra help. Please keep watching and subscribe ;-)
The more complex any system is the more it costs and the easier to fiddle. Keep it simple.
Ho Robert, thank you for your comment and for supporting the channel. You're absolutely right. The more complex a system is, the higher the costs and the easier it is to manipulate. Keeping the pension system simple ensures transparency, reduces administrative costs, and minimises opportunities for fraud. Wait until the banks and the financial institutions have greater access to your bank accounts to ensure a "more seamless and efficient benefits system". I remember "A-Day" in April 2006 which was supposed to be "pension simplification day" I am still holding my breath. Please keep watching and subscribe ;-)
It would cost a fortune to means test the state pension. Every case would need to be looked at individually because everyone's circumstances are different. So lots more staff needed to run such a system. That is the advantage of a universal system, cheaper to run and maintain.
Hi, thank you for the comment and for supporting the channel. I disagree as there is legislation going through Parliament as we speak allowing banks and financial institutions more control and access to our bank accounts to assess levels of saving and income. With AI and technology in place, this could be done seamlessly in the future. A scary future and almost dystopian. Please keep watching and subscribe :-)
Absolutely correct. Means testing 12 millions plus pensioners every year will cost hundreds of millions if not billions. One of the main reasons only Australia do it . The argument AI will do everything & cost nothing is farcical. To illustrate just how expensive Computer programs are you only need to look at Track n Trace corona Virus .A cheap as chips 37 billion yes BILLION. Any computer programs would need to be updated constantly & costs of millions . Would a millionaire not just put his millions into a offshore bank with no UK Jurisdiction ?
@@Economese Track N Trace 37 Billion . Do you think advanced programs that track bank accounts are free ? Is the Ai going to Interview the pensioners the computer program deems needing investigation ? It will cost billions & you can be dam sure that the politicians involved in passing means testing will have their sticky fingers in the Pension companies jar or the Ai Designers jar . Why wouldn't a millionaire just put his money in an offshore bank out of UK Jurisdiction or investing in Crypto ?
The administrative costs of operating means-tested benefits is a significant fraction of the cost of providing the benefit. I recall seeing claims years ago that the cost was as much as 50% of the amount of benefit paid.
Thanks for the presentation, although it did not tell me much I was not aware of. However I would make one point, GDP is not the national income, export reciepts (205B)are. As for our expencese,we as nations buy (import) 895B. So as a nation for every one pound of income we make we spend over four.
Hi Life, thank you for your comment and for supporting the channel and for sharing your knowledge so we can all learn together. Your point about GDP and national income highlights an important distinction. I was not aware of this technical information which I will remember and use in the future. The income vs spending ration of 1:4 does not seem sustainable for the long-term. Please keep watching and subscribe ;-)
@@Economese Hi Simon Thanks for the reply, I will like and subscribe as economica is a faverite subject of mine. I was wrong about the level of UK exports and will try to find why I was so wrong, and send a more acurate set of numbers. The thing about economics is economists delberatly use a language that is boring and confusing. Keep it up it is important for Brits to understand what is going on as there are millions of us dependent on them good managers.
@@Economese Hi Simon One other thing I noticed in the last set of export numbers that I found interesting was that nearly 7% was gold. How sustainable is that concidering we have very little if any left in the ground.
We’ve always been means tested for the government pension in Australia. Really impacts those who rely totally on their pension. My sister, a farmer, can only get a partial pension because their farm land is asset tested even though their farm returns less than a minimum wage earner
Hi Grobbo, thank you for your comment and for supporting the channel. Means testing for pensions, like in Australia, can indeed unfairly impact those who rely solely on their pension. Your sister's situation highlights a flaw: asset testing farm land that generates minimal income penalises hard-working individuals. A more balanced approach is needed to ensure fairness and support for those in genuine need. I would like to know a lot more about the Australian system, so please feel free to contact me on simon07800@gmail.com Please keep watching and subscribe :-)
That should be simondrake07800@gmail.com Apologies.
If you are means tested you will spend your money before hand , If you have to much you don’t get pension credit topup so does it pay to be a saver for your later years. There’s always the Kids Acounts
Hi ANdy, thank you for your comment and for supporting the channel. Means testing can discourage saving if people fear they won't qualify for benefits. It's essential to design policies that reward saving for retirement rather than penalise it. Don't break into their piggy banks just yet! But have a financial plan giving financial independence if you can. Please keep watching and subscribe ;-)
I was set for the 30 years of stamps but they changed it to 35 years. I worked in factories then joined the army and served my time. I've now emigrated and can not work to add the 5 years. They then raised the pension age and will raise it again. I won't receive the triple lock because I'm in a country that's not included in the annual rise list. How in hells name can I magically produce 5 years. Yes I can voluntarily pay for 5 years but no way on earth will I. I live on my military pension that's included with the triple lock and no doubt the means test will deminish the state pension more. I don't calculate or bet on the state pension, take what ever I have to grovel for and that's what is called serving your country.
Hi Shepherd, thank you for the comment and for the comment. More importantly, thank you for your service :-) I hope that Government changes their mind and allows the triple lock for those outside the UK and the current system is unfair. A voluntary class 3 NIC will cost approximately £907.40 for an extra year and you will receive an extra £328.64 per year in state pension. Therefore, once you have lived 3 extra years you have made your money back and anything extra is a benefit. They do offer good value is you are eligible to buy back these 5 years. After years of hard work in factories and military service, the changes to pension rules feel unfair. The option to voluntarily pay for extra years is unappealing and feels like an additional burden after a lifetime of service. Please keep watching and subscribe :-)
It wouldn't make sense to implement in such a way that removing it materially effects the ability of those having their pension reduced to enjoy the benefits of their retirement by putting them near to or into poverty after a lifetime of effort.
Ongoing, the government should be brave and look to arranging an at birth investment into something like an all world etf akin to vwrp with a gradually increasing bond mix after the first 20 years or so. Parents, until the childs maturity with tax incentives should maybe have a portion of their income attributed to that investment each year At the age of maturity or when child enters employment after uni and then takes on that responsibility until they choose to retire. This would be done with the idea that no state pension will be available at rerirement.
It would cost a lot less in tax 60 years from now, and much earlier if done on a sliding scale for people already with children below 18. Although it would mean a bit of a tax bump now to bring in i guess.
Hi Greg, thank you for the comment and for supporting the channel. Great idea! Implementing a birth investment into a diversified ETF, with tax-incentivised contributions from parents and later the individual, can ensure financial security in retirement without state pensions. This long-term approach reduces future tax burdens, supports financial independence, and rewards a lifetime of effort, making it a smart, forward-thinking solution. Instead of a state pension, how about a one-off payment to invest of say £3K-£4K and let compounding works its magic? Please keep watching and subscribe :-)
@@Economese Wouldn't the market adjust itself, by means of the "invisible hand", to the new situation by reducing interest rates?
Means testing the state pension is hardly an election winner so is unlikely to ever happen. If it did, then all contributors to private pension plans would switch to investing in collectibles or other tangible assets. Also, you cannot live on the state pension alone so it would have to double in size.
Hi 47, thank you for the comment and for supporting the channel. I agree that it would be politically damaging however, is it fairer to tell the younger generation that their NI will need to increase as retirees are living longer? There is always winners and losers when there is dramatic changes to policy. The NI saving could be invested for sure but that would have uncertain outcomes and a lot of investment risk. It is very challenging to live on the state pension of £221.20 per week for everything, including utility bills, council tax, wi-fi, mobiles, running a car, food and any small luxuries like eating out or a holiday. Please keep watching and subscribe :-)
Should that be the HIGHEST of CPI inflation, 2.5% or increase in average earnings? Do we not say the "higher of" when there are just two choices?
Hi again John, thank you for supporting the channel and for reminding me that I should have said "highest" as there are three options. My mistake:-) Please keep watching and subscribe :-)
Work too much..... Sorry no state pension.
Hi Stuart, thanks again for the ongoing support. I understand the concern, but saving and investing through auto-enrolment ensures a level of financial security. Let's strive for a fair system that rewards hard work. Your efforts and sacrifice and discipline today will pave the way for a brighter, more secure retirement, regardless of state pension changes. Keep investing in your future! Please keep watching and subscribe :-)
@@Economese You say let's have a fair system. What's fair about taking pensions off the people bothered to work & plan their retirement to give it to the people who didn't ? Means testing is a great way to incentivise living on benefits & saving nothing.
@@stuartregan1627agree.pension credit is more than most peoples state pension so no point in working.
@@stuartregan1627 excellent point - totally agree !
I’ve just retired after working forty nine and a half years in the same job .
And paid into private pensions all my working life as well , now I’ve just got to live long enough to enjoy it.
Hi Paul, thank you for your comment and for supporting the channel and for sharing your story. Congratulations on your retirement after 49 and a half years of dedication to the same job - I hope you got more than a gold watch :-) This is a success story and I hope many younger viewers follow yor example by paying into workplace pensions and personal pensions and investments. I hope you have a magical retirement and I wish you the best health so you can get into a lot of mischief. Please keep watching and subscribe :-)
@@Economese
Just subscribed
The state pension is a classic bit of mis selling - people are encouraged to believe that they are paying into a fund that pays out when they retire. This has never been true and it never will be.
Hi Bigbagbith, thank you for the comment and for supporting the channel. One of the biggest myths is that there is a pot of money for you at retirement in your name. It's true that the state pension operates on a pay-as-you-go basis rather than a personal fund. Clear communication about how the system works is essential to ensure people have realistic expectations and can plan accordingly for their retirement. There is a lot of work still to be done. Please keep watching and subscribe :-)
Whilst our Government spends lavishly abroad they plead poverty at home , say state pensions are at risk , one I cannot understand is if NI is part of the funding means for the state pension and whilst the Government tell us they are cash strapped why would they reduce NI contributions , I also think all automation should bare a tax to replace that lost and would have been paid by the workers its replaced .
Hi again Stuart, thank you for your comment and for supporting the channel. You bring up some good points. While it may seem contradictory that the Government reduces National Insurance contributions while claiming state pensions are at risk, these policies are often part of broader economic strategies which remans unclear. NICs fund state pensions, but changes might aim to support economic recovery or alleviate financial pressures on workers and businesses. Essentially, it is just another tax which has already been spent. Please keep watching and subscribe :-)
If the State Pension is means tested where is the incentive for people to invest in Company pensions? OK for bankers and public sector workers, who will get huge pensions but for normal workers they might as well spend their savings in Benidorm as save it in a second pension.
There is Zero incentive & that's why Government would have to make Private pensions compulsory. This Would be a Gravy train of money for Politicians & Top civil Servents who would have their sticky fingers in the Pension & big tech companies that would profit massively from the transition.The idea it's to save money is plainly ludicrous. Means testing costs billions , it discourages work & worse of all it is easily Mitigated by Millionaires who simply park their wealth offshore or invest in non means tested assets like Crypto & gold.
If Labour get in it could be the perfect storm conditions to realign the pensions, personally I hope they dont.I do think we need to encourage a more self sustainable pension for future generations .Meantime it should be a fair support for all who conributed. Very helpful information thanks.
Hi Nicolas, thank you for the comment and for supporting the channel. Labour have confirmed a review of pension policy which could affect tax relief, workplace pension contributions, state pension age amongst many other areas. It's essential to find a balance between encouraging
self-sustainable pensions and providing fair support for those who have contributed. Regardless of political changes, the focus should be on ensuring a fair and reliable system for everyone. Please keep watching and subscribe ;-)
Hi Simon How about a vidio on money. What it is, what its purpose is, what is the system we all use, why is there so much money, how is it created etc. I think we average people are treated like mushrooms. There is a general feeling that everythig is broken and no longer works as it used to when we were much younger. I would like to see you explore the murky world of why we are in so much trouble and no one seems to have an answer other than "we need more growth". As we live on a planet with limited non renewable resourceses, that is not sustainable. It is like we are all taking our family treasures down to the flee market and selling them off to put food on the table.
Hi Life, thank you for supporting the channel and for the suggestion. Consider it done! I have taken a screenshot and I will prepare a video on this topic and give you a shout out during the video somake sureo you subscribe and hit the notification bell. I will send you a message when it is ready. I have the next 3 weeks content prepared, so please allow me a month to get this done correctly and properly researched. let's hope it goes down well ;-)
@@Economese Great if you would like some input from me on the subject just me know as I have been following the subject for years
people are not living longer. In fact the discrepancy between rich and poor longevity is increasing.
Hi Ant, thank you for your comment and for supporting the channel. Your nuanced observation is very welcome for any reading the comments section. While overall life expectancy in the UK has increased, the gap between rich and poor is widening as you state. Recent statistics show that men in the wealthier areas live around 9 years longer than those in the most deprived areas, while for women, the gap is around 7 years. This growing disparity highlights the need to address social inequalities rather than assuming a uniform increase in longevity across all demographics. Please keep watching and subscribe :-)
The great myth that we are living longer. Shhhhhhhh . Don't let facts like life expectancy has dropped get in the way of the narrative.
@@stuartregan1627 yes you are correct- www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/lifeexpectancies/bulletins/nationallifetablesunitedkingdom/2020to2022#:~:text=Life%20expectancy%20at%20birth%20in%20the%20UK%20in%202020%20to,from%2083.0%20years%20for%20females.