UK Politics General Discussion

[Dave]

I predict that the state pension will become a benefit claim and if you have worked and paid into a private pension you'll be told you don't need the state one you've paid into for 50 years. Might aswel not work basically kids, we'll all be equal.

Our politics is grossly in favour of pensioners because older people vote in greater numbers so almost certain to never happen.

Pensions have increased at a greater rate than wages (which is fine) and continues to do so.

 

[Osaka12]

Our politics is grossly in favour of pensioners because older people vote in greater numbers so almost certain to never happen.

Pensions have increased at a greater rate than wages (which is fine) and continues to do so.

I'm 39, I'll let you know in 30 years.

 

[Dave]

I'm 39, I'll let you know in 30 years.

I could wait for that, or we can just look at the entire history of western politics.

 

[Osaka12]

Don't get me wrong, I'm not waiting for state handouts, I realised a long time ago I needed to invest in my future. But I will campaign for my fair share of what I've paid into.

 

[GooseOnTheLoose]

I predict that the state pension will become a benefit claim and if you have worked and paid into a private pension you'll be told you don't need the state one you've paid into for 50 years. Might aswel not work basically kids, we'll all be equal.

I hate to be the one to burst this particular bubble, but the State Pension is already a benefit. It is the single largest benefit expenditure on the DWP's books, costing significantly more than Universal Credit, Housing Benefit, and Disability benefits combined.

We need to dispel the myth that you have "paid into" a pension for 50 years. You haven't. There is no pot with your name on it sitting in the Bank of England, accruing interest.

The UK State Pension is an unfunded pay as you go scheme. The National Insurance contributions you paid 30 years ago didn't go into a savings account for you; they went immediately out of the door to pay for the pensions of the people who were retired 30 years ago (your parents and grandparents).

Your pension, when you get it, will be paid for by the taxes of the people working today (your children and grandchildren). It is an intergenerational contract, not a personal savings plan.

As for means-testing it against private pensions: political suicide. The grey vote is the most powerful demographic in British politics. Any party whio proposes effectively confiscating the State Pesion from those who have been prudent enough to save privately would be obliterated at the ballot box.

The incentive to work and save privately remains the same. The full new State Pension is currently £221.20 per week. If you want to live on more than £11.5k a year in your retirement, e.g, if you want to do more than just exist, you definitely still need to work and save into a private pot.

 

[Osaka12]

I hate to be the one to burst this particular bubble, but the State Pension is already a benefit. It is the single largest benefit expenditure on the DWP's books, costing significantly more than Universal Credit, Housing Benefit, and Disability benefits combined.

We need to dispel the myth that you have "paid into" a pension for 50 years. You haven't. There is no pot with your name on it sitting in the Bank of England, accruing interest.

The UK State Pension is an unfunded pay as you go scheme. The National Insurance contributions you paid 30 years ago didn't go into a savings account for you; they went immediately out of the door to pay for the pensions of the people who were retired 30 years ago (your parents and grandparents).

Your pension, when you get it, will be paid for by the taxes of the people working today (your children and grandchildren). It is an intergenerational contract, not a personal savings plan.

As for means-testing it against private pensions: political suicide. The grey vote is the most powerful demographic in British politics. Any party whio proposes effectively confiscating the State Pesion from those who have been prudent enough to save privately would be obliterated at the ballot box.

The incentive to work and save privately remains the same. The full new State Pension is currently £221.20 per week. If you want to live on more than £11.5k a year in your retirement, e.g, if you want to do more than just exist, you definitely still need to work and save into a private pothen

So why does everyone born before 1980 get final salary and state pensions and I don't?