UK State Pension

Kompany Car said:
The minimum wage currently in the UK is £23795, take home pay after tax is £20652. If you made the state pension not use any of the tax free allowance, pensioners would get £11502 + £12570 tax free which is £24072.

Should someone in full time work be significantly worse off than someone getting effectively a state benefit ?
Click to expand...
Sorry but your first paragraph makes no sense at all. And so your question at the end has no basis in reality.
 
Kompany Car said:
The minimum wage currently in the UK is £23795, take home pay after tax is £20652. If you made the state pension not use any of the tax free allowance, pensioners would get £11502 + £12570 tax free which is £24072.

Should someone in full time work be significantly worse off than someone getting effectively a state benefit ?
Click to expand...
I’m not sure how a pensioner with a basic state pension of £11,502 is better off than someone with a take home pay after tax of £20,652.
A pension has to be earned someone on minimum wage still needs to earn their pension, you can’t add the tax allowance and call that take home pay when the majority of pensioners only have £11,502 to live on, but you can’t add a private pension that not everyone has and tax that separately
 
Mr Kobayashi said:
No I'd go far as to say it's morally wrong.

People grafting full time. Let's face it, there isn't any real job (i.e. excluding people paying themselves nmw for tax purposes) on minimum wage or a bit above it that isn't a fucking slog nowadays.

Someone sat at home in a mortgage free property or who is able to go on holidays overseas 3-6 months of the year doesn't need that level of income and we'd bankrupt the state and every generation from X to zoomers and their successors if we ever tried to do it.

Below is a general point not directed at you.

The state pension was originally introduced in Edwardian times, for people no longer able to work due to age related illness to have a short period before a dignified death.

Fortunately Things have changed but
It's still only to support people to have a basic standard of living not for round the world cruises and holiday homes in the Costas.
Click to expand...
Absolute fucking bollocks, what about the Seniors who started work in the 50's, 60's and even 70's who had no access to company pensions? There's plenty out there, they paid full NI stamp whereas later generations got tax relief on pension payments. There's plenty of Seniors out there surviving on the State Pension alone, lots of them grafted in their day and lived a lifestyle that today would be considered as poverty. You're such a defender of people's rights but you do t mind sticking the boot in on Pensioners, very strange stance.
 
It’s a strange stance to take because many pensioners live off the £11,502 that’s all they have. I myself am wondering about graduating extra pension that doesn’t exist now but was one of the changes done away with.
It’s one of the current pensioner bashing that the Labour government is responsible for with the claim pensioners are rich. Nothing could be further from the truth
 
hammocity said:
Absolute fucking bollocks, what about the Seniors who started work in the 50's, 60's and even 70's who had no access to company pensions? There's plenty out there, they paid full NI stamp whereas later generations got tax relief on pension payments. There's plenty of Seniors out there surviving on the State Pension alone, lots of them grafted in their day and lived a lifestyle that today would be considered as poverty. You're such a defender of people's rights but you do t mind sticking the boot in on Pensioners, very strange stance.
Click to expand...

And how many of them think they should have a state pension equivalent to full-time nmw paid by for working people whose standard of living is in decline?
 
Kirkstall Blue said:
It’s a strange stance to take because many pensioners live off the £11,502 that’s all they have. I myself am wondering about graduating extra pension that doesn’t exist now but was one of the changes done away with.
Click to expand...

Graduated Retirement Benefit.

It lasted from 1961 to 1975. It closed 50 years ago.

As you know It's worth an extra 25p a week because inflation has eroded almost all of the value of your contributions in to that scheme.

Rights4Seniors | Advice NI

Rights4Seniors was a digital inclusion project delivered by Advice NI. The website, www.rights4seniors.net, provided information and resources for older people in Northern Ireland to allow them to access their rights and entitlements.
www.rights4seniors.net www.rights4seniors.net

The Labour government that abolished it introduced Serps.

My understanding is that SERPs was a more generous than GRB because it took into account caring responsibilities and greater payouts for lower earners.

The first belt tightening of SERPs came under the Tories in 1988.

Happy to be corrected on that from someone more knowledgeable.

The Blair government replaced SERPS with a more generous S2P.

The general trend is for Labour governments to introduce more generous state pension schemes and then for the Tories to cut them back.

Kirkstall Blue said:
It’s one of the current pensioner bashing that the Labour government is responsible for with the claim pensioners are rich. Nothing could be further from the truth
Click to expand...

I didn't say that. But some pensioners are. And they aren't as rare as hens teeth.

Pensioners who own their own home and have occupational pensions and other streams of income besides the state pension are generally reasonably well off.

Especially pensioners who are asset rich due to land value inflation. Particularly in areas of the South East of England.
 
hammocity said:
Absolute fucking bollocks, what about the Seniors who started work in the 50's, 60's and even 70's who had no access to company pensions? There's plenty out there, they paid full NI stamp whereas later generations got tax relief on pension payments. There's plenty of Seniors out there surviving on the State Pension alone, lots of them grafted in their day and lived a lifestyle that today would be considered as poverty. You're such a defender of people's rights but you do t mind sticking the boot in on Pensioners, very strange stance.
Click to expand...

Not at all. It's consistent and coherent within my general worldview. We can debate that in another thread in the politics section though.
 
mosssideblue said:
Not sure if still the case but you could draw down annually an amount tax free
Click to expand...
No, I became a pensioner this month. My pension takes up almost all my tax free allowance (about £500 buffer). Any income I draw down from my private pension above this £500 will be taxed.
 
levets said:
No, I became a pensioner this month. My pension takes up almost all my tax free allowance (about £500 buffer). Any income I draw down from my private pension above this £500 will be taxed.
Click to expand...
I assume you had a private pension and you took the 25% tax free lump sum allowance
What @mosssideblue is saying is that instead of taking the lump sum, you drawdown on the tax free part and take it in monthly installments
I'll try and find a youtube video that explains it

Edit
Here it is
Watch it from 6 mins 30

 
Last edited:
dickie davies said:
I assume you had a private pension and you took the 25% tax free lump sum allowance
What @mosssideblue is saying is that instead of taking the lump sum, you drawdown on the tax free part and take it in monthly installments
I'll try and find a youtube video that explains it

Edit
Here it is
Watch it from 6 mins 30

Click to expand...

And then you get hit by a bus! Take your tax free and use it you never know what tomorrow will bring.
 
Blue Maverick said:
And then you get hit by a bus! Take your tax free and use it you never know what tomorrow will bring.
Click to expand...
You are still using it.
What are you suggesting? Blow the lot in a week!
Pensions are now included in the estate of a deceased person and the funds can be gifted in a will
I think though that if you decided on an annuity, that dies with you
 
dickie davies said:
You are still using it.
What are you suggesting? Blow the lot in a week!
Pensions are now included in the estate of a deceased person and the funds can be gifted in a will
I think though that if you decided on an annuity, that dies with you
Click to expand...
Annuities have the same death benefit options as drawdown, you just need to build them in at the outset. Most married people would choose to include a spouses pension (unless the spouse has his/her own provision) if the age difference is quite small (roughly 3 years on average) then the starting annuity amount is not dramatically reduced.
 
SilverFox2 said:
Surely the state pension has always been taxable. It is just paid tax free ie gross because it uses up allowances so that that the tax burden falls mainly on other pensions or earnings.
Click to expand...
Indeed. But as the state pension is ever increasingly moving towards the whole of a person’s tax free allowance, it opens the question of should the tax fee allowance be increased to match the state pension or, if the SP does overtake the TFA, should the state pension be paid tax free to someone of pension age?
Obviously it takes up the entirety of the pensioners TFA, but their TFA would be more than someone of working age
 
levets said:
No, I became a pensioner this month. My pension takes up almost all my tax free allowance (about £500 buffer). Any income I draw down from my private pension above this £500 will be taxed.
Click to expand...
I assume you've already taken the 25% Tax Free Cash from your private pension then? If not, use can use this flexibly to boost your income until the TFC runs out.
 
Blue Maverick said:
And then you get hit by a bus! Take your tax free and use it you never know what tomorrow will bring.
Click to expand...
The TFC would still be part of your estate. It's far more tax efficient to take it over a few years and the chunk not taken continues to grow in your pension. Of course if you have a load of debt or mortgage then using the TFC to pay that off is sensible.
 
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