State pension BOMBSHELL: Payments ‘to be MEANS-TESTED for high-earners to stop crisis’ : Express.

THE state pension will have to be means-tested for better-off pensioners to keep it affordable and fair for the poor, research suggests.

The report by the University of Kent suggests state pension payments should be limited for pensioners paying higher-rate tax from as early as 2019, as a way of cutting the ballooning cost of pension benefits.

Under the current rules, the state pension can be claimed by all, irrespective of wealth with access to the payments being given when the person reaches retirement age and provided they have a record of national insurance contributions.

The Government says an ageing population – relative to those of working age – is putting pressure on the current pensions system, changes are necessary. It has led to the Government considering speeding up the current timetable of pension age rises.

Pensioners means-testedGetty

Wealthy pensioners could be means-tested over their income in the future

Increasing the state pension age has a much greater impact on the least well off — and they are the ones who are most dependent on this benefit

Professor Paul Sweeting

With the current timetable the state pension age is set to equalise at 65 for men and women by 2018, rising to 66 by 2020, 67 by 2028 and 68 by 2046.

One independent review last year even recommended speeding this up to bringing the age up to 68 by 2037-39.

But in the 50-page report ‘Surfing the Tsunami: A Plan for State Pension Reform’ published today, academic Professor Paul Sweeting says speeding up of the state pension age rises are unlikely to keep a lid on pension spending in the long run. It would have a greater impact on those who need the payments the most, he said.

Read More : Daily Express.

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4 Comments

  1. Pensioners are already taxed on their pensions. Anything above £10,600 (including state pension) is taxed. I have a private pension, which is only £60 pm, but it is deducted from my benefits. So pensioners already pay.

    Liked by 1 person

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