State Pension Increases

I agree that tax paying pensioners should still pay NI.
But I’d also abolish pension tax relief based on marginal rate.
Only a small minority of those who enjoyed 40% relief ever pay 40% tax on their pension, thus enjoying a large benefit at the expense of other tax payers.
I’d have a universal tax relief for pensions for everyone of 30%.
 
Kompany Car said:
Thats the problem though, it is only a psychological link not an actual one. I dont suggest we get rid of NI and there still should be a fixed number of qualifying years, but why should you stop paying NI when withdrawing from a pension, as Im sure we can all agree it pays for more than just pensions.

It would mean that at least some of the tax burden is paid for by the more wealthy pensioners, remembering that those who contribute to any pension save tax at their marginal rate, so it still makes saving into one pay in the long run assuming they retain the 25% tax free allowance. The threshold for payment of NI does however need to be set at whatever the state pension is per year for those of pension age.
Click to expand...
Hold on your saying you should carry on paying NI out of your pension, which is one of the reasons you paid NI for in the first place! Im Sorry but that’s bollocks, if they want to keep people employed beyond pension age whether state or private then once you hit the 35 year of paying NI then stop paying, it’s a significant pay rise and may make people work a little longer, therefore still contributing income tax on their earnings, so they’d get at least 20% of that NI contribution rather than nothing and also not having to pay out the pension. If they’d had done that to me I’d have been better off by around £500, so the government would’ve got £100 into their coffers, I’d have had £400 extra to spend a lot which is taxed and put back into the economy and also given me a better standard of living.
 
Blue Maverick said:
Hold on your saying you should carry on paying NI out of your pension, which is one of the reasons you paid NI for in the first place! Im Sorry but that’s bollocks, if they want to keep people employed beyond pension age whether state or private then once you hit the 35 year of paying NI then stop paying, it’s a significant pay rise and may make people work a little longer, therefore still contributing income tax on their earnings, so they’d get at least 20% of that NI contribution rather than nothing and also not having to pay out the pension. If they’d had done that to me I’d have been better off by around £500, so the government would’ve got £100 into their coffers, I’d have had £400 extra to spend a lot which is taxed and put back into the economy and also given me a better standard of living.
Click to expand...
To reiterate what has been said multiple times before, the money "you" paid was paying for those who were drawing a pension whilst you were working. Your state pension when you get it is paid for by current tax payers. NI pays for more than just pensions.
Lets put it this way you could, if you had the money in your pension to have an income of 100k per year, thats just short of 2k per week. On that NI would only be £77 per week so considerably less than the £221 per week that the state pension pays. This approach is much better than means testing the state pension as it doesn't as significantly penalise those who have done as they have been told they should and paid into a private pension.
 
Last edited:
Kompany Car said:
To reiterate what has been said multiple times before, the money "you" paid was paying for those who were drawing a pension whilst you were working. Your state pension when you get it is paid for by current tax payers. NI pays for more than just pensions.
Lets put it this way you could, if you had the money in your pension to have an income of 100k per year, thats just short of 2k per week. On that NI would only be £77 per week so considerably less than the £221 per week that the state pension pays. This approach is much better than means testing the state pension as it doesn't as significantly penalise those who have done as they have been told they should and paid into a private pension.
Click to expand...
If you’ve paid your 35 years you’ve paid your contribution, you’ve done your part, indeed how much you pay varies on how much you earned yet you could end up with the same pension. My point still stands if they want to encourage older workers back into the work place then after the 35 years whether it’s for more than the pensions or not should be stopped let that person then spend the extra as they wish. I pay already on my private pension income tax so when I eventually get my state one that too will be taxed. Why on earth would I want to carry on working to be taxed not only income but NI past that age? You’d be on less than minimum wage.
 
Blue Maverick said:
If you’ve paid your 35 years you’ve paid your contribution, you’ve done your part, indeed how much you pay varies on how much you earned yet you could end up with the same pension. My point still stands if they want to encourage older workers back into the work place then after the 35 years whether it’s for more than the pensions or not should be stopped let that person then spend the extra as they wish. I pay already on my private pension income tax so when I eventually get my state one that too will be taxed. Why on earth would I want to carry on working to be taxed not only income but NI past that age? You’d be on less than minimum wage.
Click to expand...
I paid NI for 50 years so they can fuck right off
 
Blue Maverick said:
If you’ve paid your 35 years you’ve paid your contribution, you’ve done your part, indeed how much you pay varies on how much you earned yet you could end up with the same pension. My point still stands if they want to encourage older workers back into the work place then after the 35 years whether it’s for more than the pensions or not should be stopped let that person then spend the extra as they wish. I pay already on my private pension income tax so when I eventually get my state one that too will be taxed. Why on earth would I want to carry on working to be taxed not only income but NI past that age? You’d be on less than minimum wage.
Click to expand...
Based upon that logic then I might as well not pay, I've 35 yrs as of last September yet earn more than 4 times the average UK salary. But hey lets leave it to those who cant afford to pick up the tab.

I fully understand that people want to hold onto their money and in the ideal world everyone should pay in a certain amount and then be able to take out what they have contributed. But listening to the mood music its a choice between setting the retirement age at around 70 within the next 2 decades, means testing the state pension or something else which is what I was proposing. Having the attitude I'm alright Jack and fuck everyone else, isn't great for our kids or grandchildren.
 
What an infantile view to think NI is only for your state pension and you should stop paying after you have your 35 years to get a full pension?
It beggars belief anyone could be that stupid.
 
Kompany Car said:
Based upon that logic then I might as well not pay, I've 35 yrs as of last September yet earn more than 4 times the average UK salary. But hey lets leave it to those who cant afford to pick up the tab.

I fully understand that people want to hold onto their money and in the ideal world everyone should pay in a certain amount and then be able to take out what they have contributed. But listening to the mood music its a choice between setting the retirement age at around 70 within the next 2 decades, means testing the state pension or something else which is what I was proposing. Having the attitude I'm alright Jack and fuck everyone else, isn't great for our kids or grandchildren.
Click to expand...
You have to pay NI whether you like it or not until you qualify for a state pension.

This can mean you pay for 50 years
 
kaz7 said:
I tried checking what pension i am due on the gov website but they wanted my live capture, photo of my drivers licence , what i had for breakfast and a smear test , i gave up , will be a surprise i guess
Click to expand...
It’s not that difficult Kaz, just persevere or email HMRC.

You can receive an estimate of your new State Pension by contacting the Future Pension Centre on 0800 731 0175 for a statement or get one online at: www.gov.uk/check-state-pension.
 
You must log in or register to reply here.
Unread Posts

Don't have an account? Register now and see fewer ads!

SIGN UP
Back
Top
✖
  AdBlock Detected
Bluemoon relies on advertising to pay our hosting fees. Please support the site by disabling your ad blocking software to help keep the forum sustainable. Thanks.