Or, more accurately, the richer 60% of pensioners-as at least 40% pay no tax at all. And will continue to pay no tax at all. Something that article completely ignored.
Wealthier pensioners used to have to pay 20% tax on income over and above £12,500. Whereas everyone else had to pay 30%. And this is being adjusted to 20% v 26%.
Meanwhile, everyone else has to work longer and receive pensions later to pay for current pensioners.
Who still manage to claim this is somehow unfair. To them. While banging on about frozen tax thresholds. Conveniently forgetting that it applies to everyone else, too.
The privileged generation. Who steadfastly fail to recognise it.
I was only arguing that state pension should be tax free. It seems pointless to give money out with one hand, and take it back with the other. Or perhaps they should increase the triple lock further, to take account of income tax. Any pensioner with just about any additional income, will be paying increasing amounts of tax on the additional income since 2021. And if nothing changes, all pensioners that receive the maximum payment, will be paying some tax on the state pension from 2025, or 2026.
I dont have a clue what benefits are available to pensioners, but I think that retiring while having to pay rent would be very difficult, particularly if you were single.
The reasons for the state pension scheme being in trouble, are obvious. Yet the Tories are intent on reducing, and doing away with NI contributions in the longer term. Surely the reductions in contributions, can only lead to further increases in the qualifying age for the state pension.
Given a choice, I am not sure that young people would today vote for relatively small reductions in NI, and having to wait until they are in their 70s to qualify for the state pension. If I was a youngster today, I would favour slightly higher contributions, and being able to qualify earlier.
The triple lock was put in place to protect pensioners. Yet the freezing of the tax thresholds has had the opposite effect. The effect of this has made people in a similar position to me around £700 per year worse off. The personal allowance was frozen in 2021. I accept that pensioners are not the only people affected by this. The increase in state pension in 2021 was £229. In 2022 it was increased by £289. So the £700 I am worse off by, has wiped out both these increases, as well as part of the 2023 increase. I suppose that suspending the triple lock in 2022, when inflation was running at 11.1%, didnt help much either.
Should the "state pension be tax free"? IMO, short answer, yes.
It is only the extra pensions that should attract tax. I think it is extremely likely that the state pension will become 100% of the tax-free slice. But not over and above that. For a whole variety of reasons. Practical (the cost of deducting) as well as political.
I know that this Government has announced it intends to freeze tax thresholds for years. But this cretinous Government fails to appreciate that that is not its decision. That will be for the new Government to determine.
Other Parties than Labour can promise all sorts. Safe in the knowledge that they will never have to deliver. Which is why the Lib Dems will be promising a free unicorn for every voter. And Reform will promise that Johnny Foreigner will be stopped from entering the UK via a force field.
Either the threshold will rise to keep pace with full State Pension. Or there will be a concession exempting State Pension from exceeding the 0 rate band. My money is on the latter-because it is cheaper.
And today's pensioners will continue to have advantages that no-one else has had. Or will have. And will continue to claim they are hard done by.
That is an assumption that you are making. Yet I believe some people already pay tax on their state pension. The article below was updated in 2020.
Why is my friend on a much bigger £250 a week state pension, though I earned more? Steve Webb replies
For example, in February this year there were nearly 400,000 people with weekly state pensions of more than £250 per week, of whom nearly 70,000 were on more than £300 per week.
So that makes around half a million people already paying tax on their state pension, less any that have died, plus any that have subsequently qualified for it. Which makes your assumption wrong.
Or, more accurately, the richer 60% of pensioners-as at least 40% pay no tax at all. And will continue to pay no tax at all. Something that article completely ignored.
Wealthier pensioners used to have to pay 20% tax on income over and above £12,500. Whereas everyone else had to pay 30%. And this is being adjusted to 20% v 26%.
Meanwhile, everyone else has to work longer and receive pensions later to pay for current pensioners.
Who still manage to claim this is somehow unfair. To them. While banging on about frozen tax thresholds. Conveniently forgetting that it applies to everyone else, too.
The privileged generation. Who steadfastly fail to recognise it.
I was only arguing that state pension should be tax free. It seems pointless to give money out with one hand, and take it back with the other. Or perhaps they should increase the triple lock further, to take account of income tax. Any pensioner with just about any additional income, will be paying increasing amounts of tax on the additional income since 2021. And if nothing changes, all pensioners that receive the maximum payment, will be paying some tax on the state pension from 2025, or 2026.
I dont have a clue what benefits are available to pensioners, but I think that retiring while having to pay rent would be very difficult, particularly if you were single.
The reasons for the state pension scheme being in trouble, are obvious. Yet the Tories are intent on reducing, and doing away with NI contributions in the longer term. Surely the reductions in contributions, can only lead to further increases in the qualifying age for the state pension.
Given a choice, I am not sure that young people would today vote for relatively small reductions in NI, and having to wait until they are in their 70s to qualify for the state pension. If I was a youngster today, I would favour slightly higher contributions, and being able to qualify earlier.
The triple lock was put in place to protect pensioners. Yet the freezing of the tax thresholds has had the opposite effect. The effect of this has made people in a similar position to me around £700 per year worse off. The personal allowance was frozen in 2021. I accept that pensioners are not the only people affected by this. The increase in state pension in 2021 was £229. In 2022 it was increased by £289. So the £700 I am worse off by, has wiped out both these increases, as well as part of the 2023 increase. I suppose that suspending the triple lock in 2022, when inflation was running at 11.1%, didnt help much either.
Should the "state pension be tax free"? IMO, short answer, yes.
It is only the extra pensions that should attract tax. I think it is extremely likely that the state pension will become 100% of the tax-free slice. But not over and above that. For a whole variety of reasons. Practical (the cost of deducting) as well as political.
I know that this Government has announced it intends to freeze tax thresholds for years. But this cretinous Government fails to appreciate that that is not its decision. That will be for the new Government to determine.
Other Parties than Labour can promise all sorts. Safe in the knowledge that they will never have to deliver. Which is why the Lib Dems will be promising a free unicorn for every voter. And Reform will promise that Johnny Foreigner will be stopped from entering the UK via a force field.
Either the threshold will rise to keep pace with full State Pension. Or there will be a concession exempting State Pension from exceeding the 0 rate band. My money is on the latter-because it is cheaper.
And today's pensioners will continue to have advantages that no-one else has had. Or will have. And will continue to claim they are hard done by.
Or, more accurately, the richer 60% of pensioners-as at least 40% pay no tax at all. And will continue to pay no tax at all. Something that article completely ignored.
Wealthier pensioners used to have to pay 20% tax on income over and above £12,500. Whereas everyone else had to pay 30%. And this is being adjusted to 20% v 26%.
Meanwhile, everyone else has to work longer and receive pensions later to pay for current pensioners.
Who still manage to claim this is somehow unfair. To them. While banging on about frozen tax thresholds. Conveniently forgetting that it applies to everyone else, too.
The privileged generation. Who steadfastly fail to recognise it.
‘Stealth tax on pensioners will force me to vote Labour for first time in 56 years’
This freeze on tax thresholds means 850,000 more pensioners will be dragged into paying income tax within four years.
Currently, 8.5 million pensioners pay income tax. But analysis by the House of Commons Library found that the frozen personal allowance means 1.6 million more retirees will pay the tax than if the threshold had tracked inflation since 2021.
Without the freeze, the allowance would have risen to £15,220 in 2024-25 and up to £15,990 in 2027-28.
It means around 850,000 additional pensioners will pay income tax in 2028 compared to this year, taking the total to 9.35 million – the highest on record, and nearly double the 4.9 million when the Tories came to power in 2010.
Telegraph reader Donald Gilbert accused the Government of “giving with one hand and taking with another”.
Reader Sharon Jagger said her father has been dragged into the tax net at the age of 92.
Or, more accurately, the richer 60% of pensioners-as at least 40% pay no tax at all. And will continue to pay no tax at all. Something that article completely ignored.
Wealthier pensioners used to have to pay 20% tax on income over and above £12,500. Whereas everyone else had to pay 30%. And this is being adjusted to 20% v 26%.
Meanwhile, everyone else has to work longer and receive pensions later to pay for current pensioners.
Who still manage to claim this is somehow unfair. To them. While banging on about frozen tax thresholds. Conveniently forgetting that it applies to everyone else, too.
The privileged generation. Who steadfastly fail to recognise it.
I was only arguing that state pension should be tax free. It seems pointless to give money out with one hand, and take it back with the other. Or perhaps they should increase the triple lock further, to take account of income tax. Any pensioner with just about any additional income, will be paying increasing amounts of tax on the additional income since 2021. And if nothing changes, all pensioners that receive the maximum payment, will be paying some tax on the state pension from 2025, or 2026.
I dont have a clue what benefits are available to pensioners, but I think that retiring while having to pay rent would be very difficult, particularly if you were single.
The reasons for the state pension scheme being in trouble, are obvious. Yet the Tories are intent on reducing, and doing away with NI contributions in the longer term. Surely the reductions in contributions, can only lead to further increases in the qualifying age for the state pension.
Given a choice, I am not sure that young people would today vote for relatively small reductions in NI, and having to wait until they are in their 70s to qualify for the state pension. If I was a youngster today, I would favour slightly higher contributions, and being able to qualify earlier.
The triple lock was put in place to protect pensioners. Yet the freezing of the tax thresholds has had the opposite effect. The effect of this has made people in a similar position to me around £700 per year worse off. The personal allowance was frozen in 2021. I accept that pensioners are not the only people affected by this. The increase in state pension in 2021 was £229. In 2022 it was increased by £289. So the £700 I am worse off by, has wiped out both these increases, as well as part of the 2023 increase. I suppose that suspending the triple lock in 2022, when inflation was running at 11.1%, didnt help much either.
Should the "state pension be tax free"? IMO, short answer, yes.
It is only the extra pensions that should attract tax. I think it is extremely likely that the state pension will become 100% of the tax-free slice. But not over and above that. For a whole variety of reasons. Practical (the cost of deducting) as well as political.
I know that this Government has announced it intends to freeze tax thresholds for years. But this cretinous Government fails to appreciate that that is not its decision. That will be for the new Government to determine.
Other Parties than Labour can promise all sorts. Safe in the knowledge that they will never have to deliver. Which is why the Lib Dems will be promising a free unicorn for every voter. And Reform will promise that Johnny Foreigner will be stopped from entering the UK via a force field.
Either the threshold will rise to keep pace with full State Pension. Or there will be a concession exempting State Pension from exceeding the 0 rate band. My money is on the latter-because it is cheaper.
And today's pensioners will continue to have advantages that no-one else has had. Or will have. And will continue to claim they are hard done by.
Why would you say that? And there are a number of two generations currently claiming state pension, I assume that you are referring to the younger ones, ie those in their late sixties.
What are the other generation age ranges? Lost Generation – 1883-1900 Greatest Generation – 1901-1927 Silent Generation – 1928-1945 Baby Boomers – 1946-1964 Generation X – 1965 - 1980 Millennials – 1981-1996 Generation Z – 1997-2012 Generation Alpha – 2013 - present
‘I’m preparing for my state pension age to rise to 70 - anything younger will be a bonus’
However, research into the impact of growing life expectancy and falling birthrates on the state pension suggests that anyone born after April 1970 may have to work until they are 71 before claiming their pension.
we are due a reversal/correction as some people may prefer to call it to life expectancy.
I think with the way things are going many younger people will have to work many more hours and under much more stressful conditions, with much more financial stress. This will lower life expectancy so I seriously doubt if the youth today will live longer then their predecessors. I suppose in the upper classes with better medical tech and services available I could see them living into their 130s but I would expect for the poorer working classes for life expectancy to fall below 65.
if your 20 right now and are working class without a large inheritance or windfall coming your way I would expect you would not live to see 65.
Or, more accurately, the richer 60% of pensioners-as at least 40% pay no tax at all. And will continue to pay no tax at all. Something that article completely ignored.
Wealthier pensioners used to have to pay 20% tax on income over and above £12,500. Whereas everyone else had to pay 30%. And this is being adjusted to 20% v 26%.
Meanwhile, everyone else has to work longer and receive pensions later to pay for current pensioners.
Who still manage to claim this is somehow unfair. To them. While banging on about frozen tax thresholds. Conveniently forgetting that it applies to everyone else, too.
The privileged generation. Who steadfastly fail to recognise it.
Stealth taxes to wipe out three-quarters of state pension rise
Stealth taxes will wipe out more than three-quarters of Monday’s rise in the state pension, new analysis has revealed.
The basic state pension has risen by £692 under the triple lock, in line with wage growth of 8.5 per cent, to an annual total of £8,814.
But analysis by the House of Commons Library shows a freeze in the personal allowance means that the average pensioner who pays the basic rate of tax will have to pay £530 a year, which is equivalent to 77 per cent of the increase.
About eight million pensioners, or seven in 10, are taxpayers who are affected by frozen tax thresholds but will not benefit from this month’s cut in National Insurance because they are already exempt from paying NI.
Last week, a separate analysis by the Lib Dems found that up to 1.6 million more pensioners will be paying income tax within the next four years after the Government froze the threshold at which people start to pay.
Or, more accurately, the richer 60% of pensioners-as at least 40% pay no tax at all. And will continue to pay no tax at all. Something that article completely ignored.
Wealthier pensioners used to have to pay 20% tax on income over and above £12,500. Whereas everyone else had to pay 30%. And this is being adjusted to 20% v 26%.
Meanwhile, everyone else has to work longer and receive pensions later to pay for current pensioners.
Who still manage to claim this is somehow unfair. To them. While banging on about frozen tax thresholds. Conveniently forgetting that it applies to everyone else, too.
The privileged generation. Who steadfastly fail to recognise it.
'Frozen' state pension: who won't get the new rates this week?
Or, more accurately, the richer 60% of pensioners-as at least 40% pay no tax at all. And will continue to pay no tax at all. Something that article completely ignored.
Wealthier pensioners used to have to pay 20% tax on income over and above £12,500. Whereas everyone else had to pay 30%. And this is being adjusted to 20% v 26%.
Meanwhile, everyone else has to work longer and receive pensions later to pay for current pensioners.
Who still manage to claim this is somehow unfair. To them. While banging on about frozen tax thresholds. Conveniently forgetting that it applies to everyone else, too.
The privileged generation. Who steadfastly fail to recognise it.
'Don't be putting down my generation - us oldies are not lucky'
Or, more accurately, the richer 60% of pensioners-as at least 40% pay no tax at all. And will continue to pay no tax at all. Something that article completely ignored.
Wealthier pensioners used to have to pay 20% tax on income over and above £12,500. Whereas everyone else had to pay 30%. And this is being adjusted to 20% v 26%.
Meanwhile, everyone else has to work longer and receive pensions later to pay for current pensioners.
Who still manage to claim this is somehow unfair. To them. While banging on about frozen tax thresholds. Conveniently forgetting that it applies to everyone else, too.
The privileged generation. Who steadfastly fail to recognise it.
'Shortchanged!' State pension scandal as just one in three get full 8.5% triple lock hike
Keir Starmer risks the wrath of older voters after refusing to commit to keeping the triple lock for pensions in Labour's manifesto at the next election
Comments
Which makes your assumption wrong.
This freeze on tax thresholds means 850,000 more pensioners will be dragged into paying income tax within four years.
Currently, 8.5 million pensioners pay income tax. But analysis by the House of Commons Library found that the frozen personal allowance means 1.6 million more retirees will pay the tax than if the threshold had tracked inflation since 2021.
Without the freeze, the allowance would have risen to £15,220 in 2024-25 and up to £15,990 in 2027-28.
It means around 850,000 additional pensioners will pay income tax in 2028 compared to this year, taking the total to 9.35 million – the highest on record, and nearly double the 4.9 million when the Tories came to power in 2010.
Telegraph reader Donald Gilbert accused the Government of “giving with one hand and taking with another”.
Reader Sharon Jagger said her father has been dragged into the tax net at the age of 92.
https://www.msn.com/en-gb/money/other/stealth-tax-on-pensioners-will-force-me-to-vote-labour-for-first-time-in-56-years/ar-BB1l1fke?ocid=msedgntp&pc=NMTS&cvid=95af4f96bc56419b846b52fefced28f5&ei=155
Lost Generation – 1883-1900
Greatest Generation – 1901-1927
Silent Generation – 1928-1945
Baby Boomers – 1946-1964
Generation X – 1965 - 1980
Millennials – 1981-1996
Generation Z – 1997-2012
Generation Alpha – 2013 - present
https://www.msn.com/en-gb/news/newslondon/which-generation-are-you-age-ranges-from-gen-z-to-baby-boomers-explained/ar-AA19L8ro?ocid=msedgntp&pc=NMTS&cvid=19233555f3634f5dbc3c1437d58fdd0b&ei=224
However, research into the impact of growing life expectancy and falling birthrates on the state pension suggests that anyone born after April 1970 may have to work until they are 71 before claiming their pension.
https://www.msn.com/en-gb/money/other/i-m-preparing-for-my-state-pension-age-to-rise-to-70-anything-younger-will-be-a-bonus/ar-BB1lchoh?ocid=msedgntp&pc=NMTS&cvid=68615359aef04284a797b140b85a6a79&ei=136
I think with the way things are going many younger people will have to work many more hours and under much more stressful conditions, with much more financial stress. This will lower life expectancy so I seriously doubt if the youth today will live longer then their predecessors. I suppose in the upper classes with better medical tech and services available I could see them living into their 130s but I would expect for the poorer working classes for life expectancy to fall below 65.
if your 20 right now and are working class without a large inheritance or windfall coming your way I would expect you would not live to see 65.
Stealth taxes will wipe out more than three-quarters of Monday’s rise in the state pension, new analysis has revealed.
The basic state pension has risen by £692 under the triple lock, in line with wage growth of 8.5 per cent, to an annual total of £8,814.
But analysis by the House of Commons Library shows a freeze in the personal allowance means that the average pensioner who pays the basic rate of tax will have to pay £530 a year, which is equivalent to 77 per cent of the increase.
About eight million pensioners, or seven in 10, are taxpayers who are affected by frozen tax thresholds but will not benefit from this month’s cut in National Insurance because they are already exempt from paying NI.
Last week, a separate analysis by the Lib Dems found that up to 1.6 million more pensioners will be paying income tax within the next four years after the Government froze the threshold at which people start to pay.
https://uk.yahoo.com/news/stealth-taxes-wipe-three-quarters-213000328.html
https://uk.yahoo.com/news/frozen-state-pension-wont-rates-162511708.html
https://www.msn.com/en-gb/money/other/don-t-be-putting-down-my-generation-us-oldies-are-not-lucky/ar-BB1lt3o8?ocid=msedgntp&pc=NMTS&cvid=4adee3315e7a4b408e5f0ba5fa75eb10&ei=11
https://www.msn.com/en-gb/money/other/shortchanged-state-pension-scandal-as-just-one-in-three-get-full-8-5-triple-lock-hike/ar-BB1lsXTt?ocid=msedgntp&pc=NMTS&cvid=899e77c8894f483b85903da5267ddca9&ei=13
https://www.msn.com/en-gb/money/other/keir-starmer-risks-the-wrath-of-older-voters-after-refusing-to-commit-to-keeping-the-triple-lock-for-pensions-in-labour-s-manifesto-at-the-next-election/ar-BB1lxvqg?ocid=msedgntp&pc=NMTS&cvid=358edbd4773640ffb03581506baf7ea5&ei=58
https://www.msn.com/en-gb/health/other/at-66-my-husband-can-t-afford-to-stop-working-because-of-cruel-pension-rules/ar-BB1lE6T4?ocid=StaticFallback&pc=NMTS&cvid=dcddb4da8d4e4174b189a15fb1f183e3&ei=17
https://www.msn.com/en-gb/money/other/why-working-to-the-age-of-71-could-be-a-problem-sarah-cole/ar-BB1ipl6a?ocid=msedgntp&pc=NMTS&cvid=45fa562eccd24613de436f6c92e02610&ei=65
https://www.msn.com/en-gb/money/other/i-worked-for-50-years-but-still-won-t-get-the-full-state-pension/ar-AA1nncV0?ocid=msedgntp&pc=NMTS&cvid=45fa562eccd24613de436f6c92e02610&ei=33
https://www.msn.com/en-gb/money/other/state-pension-warning-as-britons-could-find-their-national-insurance-contributions-don-t-count/ar-AA1nogiU?ocid=msedgntp&pc=NMTS&cvid=5c2e52548f90475dab5fe3308bd84c17&ei=28
https://www.msn.com/en-gb/money/other/my-mum-now-pays-tax-on-her-pension-will-she-be-sent-a-tax-bill-jasmine-birtles-answers-your-questions/ar-AA1nu71F?ocid=msedgntp&pc=NMTS&cvid=616c35cc71854445acde272a7fd612ae&ei=34