Labour Government Outlook for UK State Pension - how might things change?
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- Опубліковано 4 сер 2024
- What is the future outlook for UK state pension, and can you rely on it? For a financially secure retirement go to ianshadrack.com/retirement-ca...
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Will pensions be means tested? Very “big brother” snooping on people, principle would be very unpopular. Currently only Australia has a means tested pension
Will the state pension age be raised? The pension age is currently due to rise from 67 to 68 between 2044 and 2046. But two separate government reviews in recent years have proposed that this age be brought forward, typically to the late 2030s. Will 10 years notice be given? Hopefully this will help build trust and allow people time to alter their plans. Access to private pensions is 10 years before state pension age
Will the triple lock continue? The triple lock is pension growth of the higher of earnings growth, inflation and 2.5%.
People don’t trust pensions around access age and their future taxation. Hopefully as you get old and can see the finishing line in sight, this distrust starts to wane
One solution is to save money into an isa if you are a 20% marginal income tax payer. Then when you start paying 40% tax, put more money into a workplace pension via salary sacrifice. If this causes a shortfall in living expenses you can dip into your isa.
The government could increase the minimum qualifying years for a full state pension if it wants to reduced costs.
Will the lifetime allowance be re-introduced?
Will 40% tax relief for pension contributions be scrapped?
Let me know your thoughts in the comments.
Chapters
00:00 How the UK state pension compares to other countries
01:52 Retirement ages around the world
02:34 Will pensions be means tested ?
03:17 Will the state pension age be raised ?
04:15 Will the triple lock continue ?
05:15 Future taxation of pensions
05:34 Pensions vs ISA
06:12 Pension minimum qualifying years
06:53 Will the lifetime allowance be re-introduced ?
07:32 Tax relief on pension contributions
Find out when you can retire ianshadrack.com/retirement-calculator
I know this already. Born in 1961 means I have to be 67 before I can get pension.
No bosses will employ anyone over 50 let alone 60.
They will have a force bosses to employ older workers or they will stay on the dole.
Retired at 60 great thats long enough working
I get £822 every 4 weeks. I am tired of the young assuming we have it good,they also assume that we are getting our Pension for free. We all paid National Insurance to secure our State Pension many of us received letters encouraging us to pay a certain amount to pay for missing years. Which we did. I paid into a works Pension which paid out £25,000 which I used to clear my mortgage I did this to secure a roof over my head because I knew that I couldn’t afford to pay a mortgage on my State Pension. We need to keep the State Pension especially since we paid to get it. Bitching about we so called boomers is insulting and abusive I am deeply offended by the attitude of some who are against us. Stop spending Billions on War and look after our own.
PS We started paying National Insurance from age 16 until age 66 that’s 50 years of paying towards our State Pension, I have received 4 years worth so what’s the problem? The National Insurance Act 1911 Old Age Pension Act 1908 The Pension Scheme 1993 /1995 /2004/ 2008.
@user-zw3bg9vr5g I think you're completely correct ❤. I was raised to think all the time you're employed, you're get paid your entitled pension at the appropriate time. However, recently I found out that you would have had to earn a pretty good salary, back in the 1970s and 1980s, in order to START building your amounting years required 😮! Back then, I remember being paid 50p phr 😢.
What are the chances I won't be the only person, in next few years, to realise they're not entitled to the full state pension because those 10/15 years, one didn't earn enough per year 🤔?
Now I have to seek out all my employment details, contact HMRC/whatever relevant department, I BUY BACK those years costing me quite a few hundred or thousands of pounds 🙃. I'll shake that tree 🌳 at the bottom of my garden 😅
Trouble is as soon as tax dollar is earned it’s spent paying existing costs off. Younger people need reminding of that. Doesn’t bode well for the future however!
You can do it online, you just need to set up a Government Gateway account and it will show you all the years you have paid and how many years you still need to contribute to get full pension @christinekane6059
I just get£575 per month worked for 50 years paid in thousands towards pension. Thieving government.
UK 🇬🇧 PENSIONS ARE DISGUSTINGLY LOW
That is why I am living in Bulgaria, I can not afford to live on the State Pension in the UK. Hence the exile!
That’s why you need to make provision during your working life - it has never been the case that the State Pension allowed you to do anything other than survive.
Tax rates are lower than most EU so it relative.
I have two pensions. I would much rather have had a Roth 401k throughout my working lifetime. $500/month invested from 25 - 65 at 9% is $2.3mil. I hate my job but can't leave because of I won't get my state pension. What do you think about doing a 70/30 stocks bond ratio?
I would avoid the index funds, mutual funds, or specific stocks for the time being. 5% fixed incomes are the safest bet for now. Save your cash for when the market actually shows signs of recovery
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
Generally speaking, a good number of people discredit the effectiveness of financial advisor in planning for retirement, For over the past 5years, I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $1million in gains… might not be a lot but retirement doesn’t seem so farfetched anymore.
Could you possibly recommend a CFA you've consulted with?
Annette Marie Holt is the coach that guides me, you probably might have come across her before I found her through a Newsweek report. She's quite known in her field, look her up.
Having a system that taxes the state pension is a bad joke!!🤬!
It’s not taxed as the max state standard pension is £11400, that’s £1170 below the tax start threshold. Most pensioners are on the older pension of £85000 maximum. It does count toward your total earnings for tax but it’s your only pension it’s not taxed
Anything above 12500 in pension you pay 20% so a private plus state say total 25K you'll pay 20% of 12500£
You do not pay tax on the State Retirement Pension - however it is income that is netted off against your tax free allowance AND if your additional income exceeds the tax free allowance - you then start paying tax. Why do you consider that unfair and who is it unfair to?
Why has not one person questioned why uk are giving full state pension to Ukrainian and other non uk citizens coming to uk. We actually know 2 Ukrainian pensioners who came to uk 6 months ago and given full state pension. No one worried may I ask.
Of course we are worried, they have paid on nothing, how is this allowed ???
@WesternWomanUK that's what is happening. Ask your local politiacian
WTF! is going on? Putting our pensioners after the migrants that have paid NOTHING into the system but are getting more than our own pensioners. This is a disgrace and it urgently needs to be put right.
This is misinformation. However they can claim pension credit if of UK pensionable age. Note Ukrainians who were drawing State Pension in Ukraine but are under the age eligibility at which State Pension is paid in the UK CANNOT claim pension credit but can apply for Universal Credit.
@normanboyes4983 I will stand and say your incorrect. We know 2 pensioners who have Bern given full state uk pension. Wake up you muppet.
The UK can afford to raise pensions significantly. Cut out waste of PPE, Billions on donations to wars etc. it’s just a case of priorities. BTW it’s OUR pensions.
Mps wouldn’t get a cut back that way though 🙄
Also do we really need 650 mp's and over 300 lords considering that most of them just tow the line and do what there told anyway, unless it's a law most people don't care about
They could afford to raise disability benefits too if they did that.
@@melindagallegan5093I am sick of motability flash cars for people that carry a walking stick. Why do they need an suv or flash car. Bloody ridiculous
@@volt8684 As someone who trembles from pain when walking around and suffers from incontinence 3 to 5 times a day, I wouldn’t have wanted a car on the motability scheme myself only the privilege of having the insurance on my carer’s car paid for.
A state Pension is not a benefit as it has already been earned and even with a measley threshold of 12,500, anything over this is taxed too!
All income is taxed once over the tax free allowance, the State Retirement Pension is income.
@@normanboyes4983 And sadly the state pension is classed as a benefit
@@fmc1192 It always has been. There never has been a pension fund attached to it. It is a government Ponzi scheme and has been since it started.
Just because people may live a few years longer, doesn’t mean they are fit to work. I know plenty of 70+ year olds that are physically and mentally broken.
I haven’t forgotten how Brown raided the pensions pot when he was Chancellor. So I’m expecting this bunch of clowns to do the same thing.
They will screw we OAP's out of our homes so they can house immigrants.
Yes mate, people have short memories, Brown raided the private pension pots on day 1 of his office paying for his Presbyterian social conscience and lets not forget he wiped out Africas debt to the UK....
Well at least the tories are gone a bunch of incompetent lying buffoons.
Which pension pot?
@@brendanmurphy6230 Brown deployed a One Off Tax raid on the Private pension industry to a total of something like 5 billion. I ll stand corrected on the figure if I'm wrong. This was 1997 and for sure effected the growth of every private pension in Britain.
I have my state Pension and if this or any future Government messes with it such that I am worse off then I will join the resistance and fight the Evil Empire.
Because of this eval country our slavery, murder deception fraud etc, we are enjoying.
Looks like Rusia and china have grabbed UK from testicals 😊
Of course there's plenty of money for the state pension, they've just given 3 billion to Ukraine.
Your comment gives me hope. I was feeling very alone and isolated in my thoughts on that subject matter!
The gimmegrant bill keeps growing too.
You would be giving them a lot more than that if they all came here.
And the pension bill is a lot more than 3 billion.
Given the government spends around £115 billion on pensions each year then £3billion barely registers I’m afraid.
Labour will only be in for four years, no one seriously thinks they’ll improve anything!
Unfortunately they can harm the UK irreparably by then.
You people make me laugh ,Liss Truss near bankrupted the pensions of millions of people , blame her and the torys
@@tomfreeman650 just another stupid comment by someone totally unaware about economics!!
the personal tax allowance needs upping. those of us who also get a work pension are being taxed. disgusting that pensioners who slogged their guts out and now with one foot in the grave still have to pay tax. tax the rich not the penniless.
You are one of the ‘rich’ - why do you expect working people to pay your tax?
I worked for 50 yrs 48 yrs as a nurse i cant work in the care sector any longer physically and mentally drained years ago nurses retired early as the job was too physically demanding
And you have two very nice pensions.
Everyone thinks pensioners are loaded!
I wish I was ,I'm a pensioner,we get lowest pension in Europe,they rather spend it on arms and wars and foreign aid,when we paid for our pension while while working.
@@melvinplant8637lol that’s not where the money is being syphoned off, look at Tory donors, private equity firms and general corruption with PPE and track and trace app.
UK paid lowest state pension in EU
wrong, healthcare is free and free bus and train ,europe pays
@@Jack-fs2im That's not a pension🙃
@@barriewilliams4526 Its a benefit for people of pension age that the EU does not give.DOH its 25 euros to see a doctor and 35 euros to see a consultant etc no winter fuel allowance or free travel for over 65s in the EU or triple lock.
@@Jack-fs2im Few people can see a doctor in the UK as they are in the main reduced to supplying a phone service now. Seeing a doctor is a rather redundant term in the UK. You spread misinformation above about free rail services as this is only in London which is hardly representative of the UK in any way in anything. EU does not need the triple lock as it is not a subsistence level benefit and winter fuel allowance has gone. I am sure bus passes are soon to go though bus services are running down so not much use to many people anyhow. Do you live in London by any chance? Edit: Also free train is only available to inhabitants of London and any pensioner visiting has to pay all tube and and rail services.
@@michaeld5888 its 25 euros to see a gp and 35 euros to see a consultant in france.You need 42 stamps for a pension and its not fixed you can put in whatever you want to get the level of pension.Its called a pay as you go pension.Its fact fact fact.Europe is all private medicine,oh dear me.
9 million a day (set to rise under Labour) currently being spent on hotels for doctors and engineers would help pay us oldies a decent pension.....
17 mill I believe
I paid into the system for 50 years much of that as a farm worker hard physical work i certainly make no apology for getting some back.
The money that should have been put aside by successive governments for pensions as intended has been squandered in many cases on unwise schemes and or given to other countries, immigrants often illegal ,wars we didn't have a say in and much more . Worse given unwisely to friends in the guise of ridiculous unfulfilled contracts. Why should anyone after a lifetimes work pay for that.
Women have already been cheated in many cases out of six years ,men one year. When we started work it was paying into a system that promised to take our money to provide for retirement many years later ,so a contract.
Well, I think the age for state pension was unfair under the old rules. I mean, if women live on average longer than men how come they got their pension six years earlier than men? It should have been equal age from the start. However having said that, now it's increased for bot they should have set the age for men and women to 62/ 63. I can understand why they didn't in a way though. People would have said women still lost out on 2-3 years and men gained. Initially yes, but at least neither would have lost out so much as it is now. It should be equal age but not as high as it is now.
The State Pension shouldnt be taxed at all.some of us only have that as our sole income.At our age we have paid into the tax system enough already !!!
If you only get state pension it isn’t taxed!
I am 73 this year and have the State Pension, and I can not for the life of me see how the " Triple Lock" can be paid for. State Pension was a " right" paid out of Earnings Related Pension SERPS scheme. But the constant need to use the National Insurance Contributions and merely another tax revenue stream means that there is nothing in the pensions "pot", and the pensions burden fell squarely in the lap of the Treasury the all the " jiggery pokery " that it entails.
Governments are made up of political Party Members, who in order ro get elected will promise all kinds of " sweeties"! But when they get into power have to deal with the costs of the " sweeties" that the previous administration " kicked down the road" for someone else to deal with. So that leave a problem. Austerity, higher taxes and or borrowing are the only options. The wealthy do not wish to pay higher taxes, the workers who are taxed up to the eyeballs, and coupled with minimum, low wages along with large scale unemployment, means that the tax ation route is highly problematical, so the solution? Borrowing which " kicks the can down the road" once again, or " robbing Peter to pay Paul" by cutting Services.
This can only last for so long. You can borrow more which increases the indebtedness, or cut Services and decide which ones are politically safer to cut!
Defence was cut to the bone from the 1060s onwards, but the Falklands war and later Gulf Wars displayed just how too far defence cuts went. North Sea oil revenues were squandered on destroying Industries creating mass unemployment and paying for the subsequent welfare bi;;, this coupled with huge tax cuts for the wealthy left nothing in that particular pot.
Now to the present crisis. The recents crashes mainly created by the Investment Banks fraudulent trading schemes with had to be bailed out with massive " Quantitative Easing" borrowing has left an insurmountable hole in the global economy, couple this with the recent " lockdowns" has left the economy in depression, you only have to walk around your local high street to see this in front of your eyes. Si the government, all governments are in a pickle.
War is all but inevitable so defence spending will need to be increased substantially, The welfare population is increasing, made even more problematical with the out of control migrant crisis. The NHS is a " Sacred Cow" electorially and if they cut welfare that could lead to civil unrest, that leaves pensioners who are the most vulnerable to cuts and least able to form a significant " lobby" why? Because we boomers are living longer than anticipated, and because we are becoming resented by the younger population can be easily "marginalised", and in the longer term will die off and no longer be a problem.
We have had the " Triple Lock" sweetener, but that will problab#y cease soon and with any further pension rises, and inflation will erode it away to nothing.
In the future any " pension", if any, will probably become " means Tested" by a panel and only given in extreme cases.
Sorry this is so long, but I felt that this should be clearly understood. Not just by us the pensioners, but everyone that hope to have any form of pension security in the future.
The real UK issues are the absence of long-term Governmental strategic planning and the UK electorate's poor understanding of economics and politics. This is why the UK has occasional populist Governments whose:
- main policy aim is to dismantle the State and reduce taxation on the very rich
- prime belief is that the private sector is more efficient, effective and economic than the public sector.
Once the latter is achieved then populist Governments have 'nowt' else to do (other than starting wars) as they are incapable of undoing the social and economic mess caused by cutting welfare and investment. This is why we are where we are in the UK today. It does not mean that the UK cannot afford the triple lock, safe schools, or a well-run NHS. It just means that the UK needs to tax more fairly and borrow more to invest in the county's infrastructure and accept that giving pensioners more increases spending positively in the UK economy given that many in this cohort are on the breadline and are unable to save. The UK has fiscal headroom to borrow more despite its current Government raising borrowing to historically high levels with nowt to show for it than the rich growing richer faster rates than before.
I think your view is too pessimistic. Though when you refer to the future it depends how long you mean.
I don't think there will be much change in the next 5 years. In the next 5-10 years I agree that pensions are likely to become less attractive but the idea that they would disappear in that time frame or be replaced by a means-tested system is not viable. As Ian said, means-testing is difficult because, for one thing, it is not possible to find out how much wealth people have if, for example, they keep it in bitcoin. I do agree with Ian that the number of qualifying years is likely to increases - sadly, this will affect people on low incomes more than those on high incomes with personal pensions and therefore increase inequality.
Beyond 10 years who knows. I think it is likely pensions would disappear but be replaced by a universal basic income for everyone over the age of 21. This may be necessary because many people think that advances in AI mean that we could be heading for a post-labour economy in 10-20 years where essentially nobody works. But it's really hard to predict. We could just as likely be heading for a future of mass poverty and starvation. It depends on the choices that we make. Utopia or dystopia in 2040? Take your pick.
The future's not what it used to be.
@@stephenwestland942 Take a look at your high streets!
@@stephenwestland942UBI at what cost though? A digital id?
Great post and totally agree with everything you say. Main problem has been lack of forward planning by successive inept governments that preferred just to kick the can down the road. Countries such as Germany and Australia started planning for an ageing population shortly following WW2!
Having worked unbroken for 43 years paying tax and national insurance I have paid for my state pension. It’s not my fault the governments through those years have squandered that money.
If the government has money to give away to other countries and to these illegal economic migrants then there is enough money to pay the state pensions
The reality was that while you were working you were actuly funding the pensioners of the day with your NI and PAYE today... you are still paying TAX and being funded by the current workforce more or less.... It's bizarre!!
Leave our Pensions ALONE!
Yes what’s forgotten is it’s our money not a gift!(Well not a gift for the ones that contributed anyway).
I was shocked by my son in law he called pension a benefit it's not we paid.in for years for it
Not only is the pension barely adequate the government gets a large portion of it back in stealth taxes VAT, Fuel alcohol and the fact that the threshold for paying income tax is now too low at £12,570.
People on minimum wage should not be paying income tax.
That why the Govt have been constnatly reminding people to get a workplace pension!!
With means testing there is also the issue that many simply won't bother saving into a private pension, they would rather spend their money now and let the state look after them in old age. There is no incentive to work hard and save into a private pension if those who are less financially responsible get handouts from the state. We are already seeing evidence of this in the welfare system where people are preferring to claim sickness benefits rather than work for a living.
This is a problem in Australia. People retire early, spend all their personal retirement pots and downsize house, etc, under the thresholds, and then claim the state pension afterwards. It has the counter-effect that is wanted - people working paying income tax until state pension age.
It is a deliberate policy so they will just make contributions mandatory i.e. a tax.
@@marumaru6084 compulsory. Just like the Ni Contributions is compulsory. It's supposed to pay for pensions but the Government waste it on anything like 4 star hotels for illegals.
@@stuartregan1627 Do you watch Paul Thorpe? Visited a lovely hotel near Brighton recently, full of economic chancers, here's to live off the British taxpayer.
@@stuartregan1627 I know that its obvious but contributions like auto enrolment are only semi compulsory at the moment they will be made compulsory so you can not stop (a tax by any other name since you wont benefit).
I have work all my life so I have paid taxes on it l don't wishes to pay again so mr stamer please don't
Bosnia and Bulgaria crush us on pension amounts, something to be truly ashamed about. WTF. My council tax is £400 a month - that's nearly half the entire pension!
Get a smaller home on a lower rate of council tax. Mines a 4 bedroom detatched house and my Council tax is a lot less than yours.
What about people with Forces Pension. The government already takes out tax from my forces pension because my government pension + my forces pension exceeds the lower threshold so I am losing money to Tax which is rather unpopular for a Forces Veteran!
Well, that's the same as all other pensioners who have an "Occupatiopnal" pension, which your service pension is. Bear in mind, it was a non-contriutory pension so a pretty good deal all in all. It's even worse for those with Mulitple occupational or private pensions. Nothing comes without a price I'm afraid.
Think you hit the nail on the head Ian. I believe they will increase the number of years from 35 to 40 for the full amount. As you say, it may be easier to move to a flat rate tax relief for all.
Interesting video Ian, if not very cheery… the best pension system I know of is CPF, run in Singapore. It’s a shame the system here can’t be adapted to something similar. And NI is a bit of a swizz, since it doesn’t contribute directly to yours or anyone’s state pension…
I live in Australia where the aged pension is means tested. Yes it’s more work but it does mean that those need it get it! It seems ludicrous to me that people with very healthy pension and wealth also get the state pensions too. For those that say they paid into it , well, it’s really just another form of tax! It’s well known that the uk state pension in its current form is unsustainable. While some countries such as Germany and Australia started planning for an ageing population following WW2 successive uk governments have preferred to kick the can down the road, but now the chickens are coming home to roost! They knew his was coming.
The Logic of means testing or weath distribution in a capitalist country makes zero sense . Why wouldn't 99.9 % of people just work less or not at all. Only a complete fool would work like a dog for 40 plus years to give it all to the Government at retirement. Under the madness of means testing , the bone idol who lived off benefits would get a pension but the diligent hard working grafter would get nothing. And as for Taxes & the like . Most people would agree that after contributing to the economy for decades your entitled to a pension. Basic common decency. To cap it all its massively expensive to boot so you would discourage work & enterprise but get little or no money back.
@@stuartregan1627 I hear you. Nobody would argue that we ALL deserve a pension having paid into it. However, the difference between the haves and the have nots is bigger than ever. There is so much downright greed and entitlement! How much is enough? One of the first thing I noticed when I first came to Australia was that the wealth of the country is more equally divided amongst the population. What’s more even he more affluent don’t disagree . I know what I prefer.
No I dont agree. You say we all deserve a decent livable pension . The lazy bone idol dole scroungers who live 50 years on benefits dont deserve the same rate as someone that's worked like a dog for 50 years . Do they both deserve the same pension ? Ironically under the Madness of means testing , the bone idol doley gets a pension but the Diligentl hard working grafter gets nothing. Sorry Sir You've worked too much. Should of been a doley . Why would anybody work ?
@christinefiedor3518 I would argue its hiw that pension pot came about. I have a reasonable pot of 300k. To get that I worked on average 75+ hours a week, had 16 weeks holiday in 37 years and lived frugally. Another person might choose to work less or on the same income might choose to spend on housing upgrades, fancy holidays. It seems wrong to penalise savers and ask them to subsidise the profligate
We all deserve a pension you say . Funny that because means testing takes pensions off the people that work the hardest to give it to people who sit about on benefits. It costs millions to run & discourages the very thing you need in a capitalist country. Wealth creation. People starting businesses & employing people. Why bother if all your wealth is taken at retirement ?
I'm 54 with 35 years of contribution and I don't expect to get a penny in state pension ever. The goalposts keep moving so often, by the time I get to 67 it will be means tested and the age raised to 75. By the time I get to 75 they will raise it to 80. If you're relying on the 10 year notice, it's not worth the paper it's written on.
I would perhaps be more worried about dying before you reach 86. Even if you do receive your state pension at some point, your will have to live to a ripe old age to recoup all the NI contributions you have paid to date.
Get your money into crypto if they try that
@@fanfeck2844they have already had his money by then
Wrong. At your age they won't raise the state pension age any further. Why do you think they will?
@@grumblewoof4721Wrong. On a salary of £30000 you pay around £1800 in National Insurance every year. The current state pension is over £11000 a year, inflation proof. Many people get far more back than they ever pay in.
Many thanks for posting this, it was really helpful. Your thoughts of what is likely sound very pragmatic and you doubt more extreme changes e.g. means testing for the same reasons that it sounds a crazy idea to me. There is a lot of scare mongering around pensions, and who knows, but I think people are using it as a political football so it was great to see you keeping things in perspective.
Thanks
You suggest that 10 years notice of a change in the pension age would be required, but this wasn’t offered to 60 year old women.
It was for the initial change. It was then accelerated after the global financial crisis
Remember work pensions and SIPP will also increase the age limit as well. They always do when the state pension age increases.
S&S ISA, Cash ISA are the way forward.
What happened with the 35 years work to qualify for the pension .
I have always paid tax, now a pensioner I am still paying tax because I have a private pension from working. My wife paid little tax due to low wages or looking after our children, now she is also a pensioner and receive £150 per month in her private pension, this has pushed her into the lower tax bracket so her private pension goes down to £118. All because we saved and joined a pension scheme, we also receive no benefits despite health issues
We spend our younger life through middle age paying for OUR pension over those years. Expecting it to be well organised so we would have the benefit. But it wasn't it was fucked up by MPs and those working below them. We worked all those years paying paying only for them to say it was the young paying your pension. Bull shit i paid for my pension over 50 years if it had been better looked after. So don't give me any of your lies you do not have a leg to stand on and if we have to do something about it i will be on your doorstep and like the rest of the working class we aren't very nice we call a crook a crook.
I fear that if employee NI contributions are scrapped by the government then state pensions would cease to be an entitlement that we earn. That could open the door to means testing. Jeremy Hunt wants to scrap NI.
Ni is really just another for of tax anyway! I live in Australia where the aged pension is means tested. I never thought I would say this but I think it’s much fairer system. One of the first things we noticed when we came out here is the wealth of the country is much more evenly divided amongst the population than it is in the uk. Not saying it’s perfect though. Also Australia started planning for an ageing population following WW2 while successive uk governments chose to kick the can down the road!n
@@christinefiedor3518 I currently pay voluntary NI contributions on the understanding that this will entitle me to a full state pension. I wouldn't choose to pay them otherwise.
@@Paul.Morgan I understand. But in its current form it’s unsustainable. Successive governments have known about this for decades.
@@christinefiedor3518 I think it's the triple lock aspect that is unsustainable. If it rose by CPI only then a growing economy would keep it sustainable.
As someone approaching that time of life, the state pension will make up a considerable part of my retirement income. I do believe however that the state pension has to evolve and I would like to see an expansion of the workplace pension with the state pension becoming more of a safety net or smaller portion of retirees income.
With respect, that's easy to say from where you're standing. You get the benefit of the full state pension but you're asking those that come after you to not have the same. We would have to pay far more into our pension to get the same results. Cost of living is already sky high.
@@billybobhouse9559 Another post written based on assumptions rather on what I have written.
First, I am not a boomer. Like so many I see the state pension moving further away from me, and now they are moving my private pension too. Just because I am considering my life as a pensioner simply means I am looking ahead, and I do not like how it looks for many people. It may be too late for boomers, but does not mean it has to be too late for everyone else.
Second, this means things have to change, or we can stick our heads in the sand and pray. This has not worked in the past, and I suspect it will not work in the future.
Third, yes we would have to pay more into a pension. Where that money comes from however is an open question. It can only come from three places. Ourselves, our employer, or the government.
Finally, reform is never welcomed, because there will always be winners and losers, but if planned for over enough time we can see far more winners, and perhaps have no losers.
It’s interesting that you mention possibly increasing the number of years of NI required to earn full pension from 35 to 40 years.
Of course, those of us over the age of 30 at the moment benefited from the school ‘starting credits’ scheme that effectively gave us 3 free years of credit for staying in school at the age of 16. This ran from 1975 to 2010.
Effectively I’ve only had to earn 32 years through work, those in the next generation already suffer this extra penalty.
Very few of the next generation will do 51 years like mine
I just had to check mine to confirm the three years, and there it is, nice. I have to work another 9 years in the next 20 to get the full state pension, if the system stays the same until then.
Well I have 40 Years NI and hope to get it on schedule in 2030 (or should I say 2 years late for 75% of the oringinal 65 implied). Hard to build any planning alternative now, if they change it again.
For younger folks, I think they see the raised ages proposed, as It cannot be thought in the context as many nearing potentially getting it. It will likely the under 40's will think it is not relavant at all....
Nobody is 65 anymore in the UK. The minimum SPA is now 66 and will increase in less than 2 years time to 67.
Labour will make things worse for the uk
I think it will probably move to 70 eventually but I suspect in the short-term the will start adding to the qualifying years so maybe add a year on every 5 years to get to 40 years contributions.
It wont really affect the well off that want to retire early as they will yust buy up the missing years.
Can you please do more videos on UK smaller company investment trusts? Or even international small co investment trusts?
Maybe but they won't get as many views as this one. Have a look at my portfolio coaching on my website ianshadrack.com/portfolio-coaching
In my view, the state pension age will need to rise to 71 by 2040. I'm 51 with 32 full years of NI contribs, so I'm making adjustments to my private pension contribs with the target retirement age of 71 in mind. I do not believe means testing for the state pension will happen in the UK because it's deeply unfair and a massive betrayal of trust. Having said that, the UK Government does seem to excel at that.
Can we means test the goverment?
I've not read all the comments so apologies, but I'm not sure where he gets his initial figures from. State pension is paid every 4 weeks giving 13 payments not every month giving 12?
I would be in favour of the tax relief on pensions being fixed at the basic rate of 20%.
I got my pension at 61 as i had to wait as they change the date in the year before i was 60 & they changed in the april of the of year, my birthday was in September, my you, I was pleased as i got some money & i didn't have to go work to have it.
I speak 8 languages including Japanese, I have sat through 3 separate pension “help”chats from 3 of the biggest pension providers, I don’t speak Chinese but I understand it far better than how the tax system works 🤷🏻♀️
I have a small private pension .... very small ..... and receive the state pension. For this year my private pension company have reduced my payment each month by £1.60 stating it is due to coding received from HMRC. That's another bottle of milk I'll miss!!
So the pensions need to rise so they are the same rate as other countrys because of the cost of living great news
Everybody seems to have forgotten that if you were born before 1953 the state pension is £169 per week not £220
The Tories don't give a toss for pensioners, tax the wealthy companies and rich.
Waiting till you are nearly dead for state pension is criminal it should be 60 not 66 y7 and soon 70 plus that's fcukin insane yuo put in pot then need to enjoy it but you now have to be on your last legs to draw it
Labour Are Worse Than The Tories Expect Tax On State Pensions. They Always Blame The Tories But I Remember Labour Are The Worst’s Party After Your State Pension You See If I’am Wrong.
I am hoping the new government doesn't move the goal posts because I'll not be able to adjust my plans with only 5 years to go.
That's exactly what happened last time they did it, that's how the WASPI women came about. They don't care, they've got 2 houses, 2 cars, 2 hols a year or more, we keep them.
I think if government are going to change pensions age. People who pay national insurance. Should like company ask for it to be placed in a private pension fund.
Why is there an 'old' pension rate & a 'new' pension rate. The differece is getting wider & wider. Do the government think it's okay to make people beg for top ups in order to live a basic life? We pay the same for goods & services as everyone else, & have to pay to get things done. At keast kevel jp the 'old' to the 'new'.
Good video am just worried about means testing ive just started my pension
@@robertwilson7736 you should be ok if you have started your pension
A portion of some peoples pensions are already means tested. Pension Credit is a top up benefit for those who do not have enough credits for a full pension, this is means tested.
That is a lot more than I was paid at work.
Firstly we need to look at MP'S & Civil Services Pensions also Local Council Pensions. Once these have been reduced we can look at the ordinary elderly people.
The next step that this Government will take will be to Deport Pensioners to make room for ILLEGAL IMMIGRANTS.
@@thetimeisnow6822 interesting how private companies can't afford defined benefit pension and yet the whole public sector can
The wages are mostly too low to save in any shape or form....
Some defeatists on here there are 630 MPs there are 60m people.There needs to be a change in mindset you vote to take my pension your out of a job.
This country is so passive these changes could have been stopped but no the people let them away with it then voted the robbers back in....there are no words
Reform are the only party pushing for an Australian pension system, this is a means tested system. It's their policy.
65 should be retirement age for state pensions if you've already paid in 40 years
Private pension is taxed as well.
If they just about struggle to do means testing on people for the sake of benefits, I cant quite imagine it being wise to put resources into policing the whole elderly population for the same. It might easily end up being cheaper not to do that at first place. And btw, if they want less burden on the pension budget, its worth scrapping the possibility that any lettuce can be a prime minister for like a month and end up on a 100k pension automatically.
Means testing is really expensive. How many extra staff to means test 12 million pensioners ?
@@stuartregan1627 I live in Australia where everything is means tested! One of the first we noticed when we emigrated is that the wealth of the country is much more evenly divided amongst the population. It means that that those that actually need it get it! And also it means that’s there’s more to go around. Not saying it’s perfect though. Australia started planning for an ageing population shortly after WW2 whereas successive uk governments preferred to kick the can down the road.
And means testing is effective when you’ve got people that actually know what they are doing!
@@christinefiedor3518 give money where they need it. Yeah like give it to deadbeat dolescrougers who never had a job in their life & take it off the hardest workers in society. This sort of redistribution of wealth communism is the reason nobody in the UK wants to work .Even less would work if the reward was the loss of the state pension.
Living of the state pension alone will be a struggle for most i would imagine lots of things working people take for granted will be well out of reach for pensioners life can be mundane at times and we all enjoy having something to look forward to in life pensioners should be no different but sadly they are more of an existence for them to be honest
If you grow old depending on a state pension you’ve wasted your working life .
Yes you’re right. My dad retired in 1971 and clearly stated that we wouldn’t have been able to manage comfortably on the state pension alone. His added British Rail final salary scheme pension was the difference between living and managing.
No, if you grow old not saving into a private pension as well, you’ve wasted your working life .
Under labour, mark my words they will introduce a mandatory pension for every PAYE earner across the country under an auto enrolment scheme with HRMC regardless of your age, then they will tax it when you start drawing it down if you live long enough to see your pension, pension fund managers will get more money to invest in empty office blocks, the government will take there cut Probably twice over the next twenty years, and we will get little or no return …. On top of our state pension.
DWP owe me circa £60,000 for a pension promised when I was 16 and not delivered
You’ve got five years of this labour party you be lucky if you get a pension at the end of it.
7:50 is this the end of salary sacrifice as we currently know it?
You've mentioned the Australian means tested situation but failed to mention about how well their superannuation retirement fund set up actually works. The idea is that most people shouldn't need state assistance due to setting themselves up early on with superannuation.
Also with the charts of countries paying more per month than the UK, people often miss the fact that taxes are way higher in those countries when it comes to state pension funding
Uk has one of the lowest tax contributory rates when it comes to government provided pension provisions so ofc the payouts will reflect that?!?
I know many people in Australia & it doesn't work at all & most people want it scrapped. It gives pensions to the feckless & dolescrougers but takes pensions off the people that worked the hardest . The Aussies I know either work less or spend it all before they retire. Centrelink the company that does the testing costs more than it would cost to pay it Universally. That's why no sane country does it . Australia is the only country.
Average pension in Spain in 2023, was 1373 euros a month. So £2700 p month appears a bit misleading. Although I assume this is the max amount that can be paid out, based on a percentage of earnings. Although since average earnings are less than 2k GBP per month, not many will get this.
Agreed. Some of the data is a bit odd
What is quite a good idea? It’s to invest in gold bullion
No whiskey a beter return
Eh? Basing the pension on what one has put in seems VERY fair! The more you put in, the more you should get out.
What pension? None of us are getting one come 2040 onwards.
When will UK start giving overseas UK pensioners living in other Countries, our pensions are a lot less than people get in UK.
If you retire to the Philippines the Uk pension is increased in line.
If you retire to Thailand it’s frozen.
I'm relying on my DB pension / SIPP / LISA & Stocks&shares ISA - if I get the state pension, it'll just be a bonus on top
What slot of people don't realise how many people make it to 70 and over %wise it drops off a lot
Once you draw your pension you are nothing to any government.
When you mention Government to fund surely we have funded this ourselves by paying NI for 40 years +
Basic minimum pension same as wages minimum .Keeping the tax freshold, low claws pension rises back keeping people on poverty levels .
I think you should only get a full pension if you have kids, Kids will support the future pension payments so they are very important to the continuation/affordability
Australia means test it. Seeing how Liebour conduct themselves in Wales, I can foresee UK Liebour folding to the generational fairness lobby.
I live in Australia having emigrated in 89. It’s more work to means test , but less if you have staff that know what they are doing. Have to say however it makes the system considerably fairer!
The age at which pensioners receive their state pension is, at the time of writing, 67 and there is talk of it rising to 70!
www.moneyhelper.org.uk/en/pensions-and-retirement/state-pension/state-pension-an-overview
£958? Is that London prices? I wish.
You seem to be the only one that picked up on this. What the table he displays does not show the current correct payment.
As far as I know, the maximum state pension in the UK is £884.80?
@blinkbonny484 one is monthly one is every 4 weeks both are £11,502 a year
I had to pay 49 years of NI payment because i was opted out of serps been told my private pension would make more money 😢 dont opt out of serps not worth it
Well you was supposed to opt back in after 5 years I get £235 month from that after tax I get £141
The ability to opt out of the earnings-related element of the state pension was abolished in April 2016 as was that earnings-related element for those who hadn't reached state pension age by then.
I get £730 per month. Not as shown in tables.
Means testing, better to piss everything up the wall.
They’ll raise NI contributions to 40 years for full state pension and abolish the 40% tax relief band on contributions.
One solution to the pension black hole is to address the elephant in the room. That is, public sector workers essentially receive not one but TWO state pensions. Both are funded by the taxpayer. Either cap the public sector pension provided or limit it to just one or the other. The government should stop implementing pension reforms that always have a more negative effect on those who did not work in the public sector.
But they pay for both...NI contributions for one and a further salary % contributions for the other, so why shouldn't they have both. I paid 13.7% 0f my salary into my pension. The only free pension where no contribution is required is those for military personnel. Even MP's have to pay I believe its around 8.8%..
Civil servants retiring at 60 but telling bricklayers they need to work till 67. Public pensions are 2.6 trillion but these people on gold plated pensions keep telling the plebs it's the state pension that's unsustainable. Sorry it's not. Means test Civil servants pensions. Why do the get 2 state handouts ?
How will the state pension be calculated if the government gets rid of NI ? Will it be the end of the state pension and instead government tops up private pensions ?
I don't think NI specifically funds state pensions. It's just a way of raising money so I don't think it will change anything
No it will be means tested. Means people that work the hardest get nothing because they have earned too much & the bone idol that saved nothing get a pension. Private pensions will cost you the state pension.
It’s just another form of tax!
Some reason
I ended up paying cope
Out of my NHS contubutions
Suppose to give me more on my private company pension
After 45 years
Am worse off
Not only am paying tax on. My private pension
Getting much less on my state pension
Very odd
Ps
Am lucky I have my children looking after me
Always giving me money every month ❤
Best investments
Having children well for me
My wife pays 865.00 a week for her nursing care and still pays tax even though her pension is less than 865.00 a week
Why isn’t the huge profits made by trade deals we have made since leaving the EU, used for pensions,
Lol, so funny 😂
@@jocar-1735 I am not jesting,
@@raymondwebb4179Investment in the UK took a huge adverse hit due to Brexit and associated uncertainty. Annual GDP growth was very much reduced with knock on effect on government finances. Find out the facts.