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View Full Version : Means-testing state pensions a ‘nuclear option’, say experts



Neo
03-19-2024, 05:05 PM
https://wp.inews.co.uk/wp-content/uploads/2024/03/SEI_195747675.jpg?resize=640,360&strip=all&quality=90


A future government needs to raise the level of the UK state pension (https://inews.co.uk/topic/state-pension?ico=in-line_link) and will probably need to consider an element of means testing too, a former Bank of England economist has said.
David Blanchflower, who sat on the Bank of England’s Monetary Policy Committee (MPC) – which sets interest rates – and is a a tenured economics professor at Dartmouth College in the US, said that for those solely reliant on the state pension, its level was “very low”.
But he said this was “not so much” the case for those with significant private pensions who owned their own home


Mr Blanchflower, who sat on the MPC from 2006 to 2009 and has previously told i the current committee should cut interest rates (https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/boe-panel-interest-rates-hit-august-rishi-sunak-inflation-pledge-2489741?ico=in-line_link), said increased costs could be paid for by increasing taxation on those earning more than double average earnings.
“I think there is a major poverty issue in the UK. For those solely dependent on state pensions and other benefits the levels look very low – not so much for those who own their houses and have private pensions,” he said.

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/uk-means-test-state-pensions-bank-of-england-2951710

Its scandalous how much tax is taken off pension pots of pensioners, as much as 55% in some cases.

So what’s the point of having a private pension if you are going to be means tested?

Rutabaga
03-19-2024, 05:55 PM
"So what’s the point of having a private pension if you are going to be means tested?"


somebody else wants that money.

Neo
03-19-2024, 06:05 PM
"So what’s the point of having a private pension if you are going to be means tested?"


somebody else wants that money.

Exactly!


The other week I saw my pension advisor, he asked me what I wanted to do with X pension amount?

After he explained I could take 25% non taxed I HAD to take a monthly pension payment with the rest which was to be taxed at 40%. I complained. “But it’s my money!, why should I be advised to take a monthly payout?”
He told me “ because the GOVERNMENT won’t allow it, you must take a monthly pension payout”

The fuckers!

donttread
03-19-2024, 08:09 PM
https://wp.inews.co.uk/wp-content/uploads/2024/03/SEI_195747675.jpg?resize=640,360&strip=all&quality=90


A future government needs to raise the level of the UK state pension (https://inews.co.uk/topic/state-pension?ico=in-line_link) and will probably need to consider an element of means testing too, a former Bank of England economist has said.
David Blanchflower, who sat on the Bank of England’s Monetary Policy Committee (MPC) – which sets interest rates – and is a a tenured economics professor at Dartmouth College in the US, said that for those solely reliant on the state pension, its level was “very low”.
But he said this was “not so much” the case for those with significant private pensions who owned their own home


Mr Blanchflower, who sat on the MPC from 2006 to 2009 and has previously told i the current committee should cut interest rates (https://inews.co.uk/inews-lifestyle/money/property-and-mortgages/boe-panel-interest-rates-hit-august-rishi-sunak-inflation-pledge-2489741?ico=in-line_link), said increased costs could be paid for by increasing taxation on those earning more than double average earnings.
“I think there is a major poverty issue in the UK. For those solely dependent on state pensions and other benefits the levels look very low – not so much for those who own their houses and have private pensions,” he said.

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/uk-means-test-state-pensions-bank-of-england-2951710

Its scandalous how much tax is taken off pension pots of pensioners, as much as 55% in some cases.

So what’s the point of having a private pension if you are going to be means tested?

It'll get there, just a matter of time