State Pension Affordability

[willendure]

is anybody planning retirement based upon the state pension

Milan.

If they keep the triple lock, by the time I retire it will be £200K/year. But a loaf of bread will cost £50.

No. Don't be daft.

But whatever it is, it will be a nice top up. If we ever qualify that is, with the age threshold being bumped up over and again.

[Protagoras]

is anybody planning retirement based upon the state pension

Milan.

Yes, everyone I know over 60 is factoring state pension into retirement income planning. In particular, those retiring below state pension age are funding the gap years on the basis that the gap is finite and that they'll get state pension.

With state pension at c.£12k gross, and Council Tax at £6.5k gross, that's over 50% of State Pension that's effectively taxed back and so of no benefit at all.

It might be more efficient to reduce state pension and scrap council tax for pensioners, paying the funds directly from central to local government.

[WTFH]

Yes, everyone I know over 60 is factoring state pension into retirement income planning. In particular, those retiring below state pension age are funding the gap years on the basis that the gap is finite and that they'll get state pension.

With state pension at c.£12k gross, and Council Tax at £6.5k gross, that's over 50% of State Pension that's effectively taxed back and so of no benefit at all.

It might be more efficient to reduce state pension and scrap council tax for pensioners, paying the funds directly from central to local government.

I think he meant as the main (or sole) source of money.

The problems with your idea of scrapping council tax for pensioners include:
1.. Council tax at £6.5k gross is not the same for every property in the UK. If you take that figure, then some will be considerably worse off. If you go for a variable - i.e. based on the actual council tax - then it will be a nightmare in administration to calculate each individual's entitlement - that will either require a load of government employees to do it, or outsource to the private sector, and we know how expensive that will be.
2. Pensioners with multiple homes - do they get them all council tax free, or just primary residence? If it's just one residence, do they get to pick and choose the one with the highest council tax? How many minutes after this is announced will the wealthiest have worked out how to game the system, leaving the poorest worse off?

[sadkingbilly]

How many minutes after this is announced will the wealthiest have worked out how to game the system, leaving the poorest worse off?

dunno, - ask Ollie, - he'll know

[Protagoras]

I think he meant as the main (or sole) source of money.

Probably no one on here is in that position, but there are plenty of people who are. Not everyone - especially women - were able to attain a decent personal pension. Of course, that's changed a bit now for the better, but the fact remains that state pension as a sole income leaves people needing benefits.

The problems with your idea of scrapping council tax for pensioners include:
1.. Council tax at £6.5k gross is not the same for every property in the UK. If you take that figure, then some will be considerably worse off. If you go for a variable - i.e. based on the actual council tax - then it will be a nightmare in administration to calculate each individual's entitlement - that will either require a load of government employees to do it, or outsource to the private sector, and we know how expensive that will be.
2. Pensioners with multiple homes - do they get them all council tax free, or just primary residence? If it's just one residence, do they get to pick and choose the one with the highest council tax? How many minutes after this is announced will the wealthiest have worked out how to game the system, leaving the poorest worse off?

Yes, of course, there are lots of challenges. Most relate to the essential problem of council tax; viz that it's not charged per capita and not related to income. Along with that other nonsense tax - national insurance - it needs to be sorted as part of fixing the complicated mess that is the UK tax system. Why should people have over £6k of income taxed at 100% - that's just not reasonable.

And I've not even had breakfast yet . At least the sun is shining - that's not taxed yet!

[NotAllThere]

I understand Dorkeaux to mean that the people smugglers sell Britain as a place where you get a free house, mobile phone, car etc. And the right wing morons, The Mail and the Torygraph, validate it by complaining about immigrants receiveing free houses, mobile phones, cars etc...
/QUOTE]

OK, so explain the difference between you saying what people are being told by the smugglers and what the papers are saying people are being told by the smugglers...

And, just for completeness, what makes them morons?

Just to clarify for you.

The right wing morons (as opposed to the right wing smart people, just in case you think I'm calling all right wing people morons - which I'm not), The Mail and the Torygraph, go on about immigrants receiving free houses, mobile phone, cars etc... thus validating the myth which the people smugglers sell to their victims. To white, Britain is a place where immigrants will get a free house, mobile phone etc.

The reason they're morons is because they're helping to sell Britain as the place to be, thus increasing the attraction of Britain to immigrants.

[malvolio]

Just to clarify for you.

The right wing morons (as opposed to the right wing smart people, just in case you think I'm calling all right wing people morons - which I'm not), The Mail and the Torygraph, go on about immigrants receiving free houses, mobile phone, cars etc... thus validating the myth which the people smugglers sell to their victims. To white, Britain is a place where immigrants will get a free house, mobile phone etc.

The reason they're morons is because they're helping to sell Britain as the place to be, thus increasing the attraction of Britain to immigrants.

Just to clarify for you...

What the papers (all of them) are saying is what the smugglers are selling to the illegals. Look at any of the many interviews with potential illegals parked in France and they all say the same thing; get to the UK and you get free housing and health care. I doubt they are learning that from the UK press, or even La Monde.

That said, when they get here they are getting free accommodation and health care...