Additional Pensions

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Additional Pensions

Post  vernony on Thu Mar 07, 2013 10:23 pm

The state is encouraging people to save for additional pensions. However, if you live in social housing and many elderly do, then unless your additional pension is better than £8500, then it is not worth it. For a start you will pay income tax on your additional pension. Additionally you will have to pay Council Tax. You will also have to pay rent. You may not qualify for pension credit

Meanwhile for the resident who, for whatever reason, has not saved for an additional pension, they will pay no rent, no Council Tax, no Income Tax, and they will receive pension credit.

As there will no be many people in social housing who have an additional pension of more than £8500 pa, then this will hit just about everybody.

Part of the problem is that, although the state pension is not in-it-self taxable it is, nevertheless grossed for tax i.e. seen as part of earnings. This makes just about everything above a state pension as taxable. To be fairer the state pension should not be grossed for tax purposes

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Re: Additional Pensions

Post  ivanhoe on Mon Mar 11, 2013 6:34 am

vernony wrote:The state is encouraging people to save for additional pensions. However, if you live in social housing and many elderly do, then unless your additional pension is better than £8500, then it is not worth it. For a start you will pay income tax on your additional pension. Additionally you will have to pay Council Tax. You will also have to pay rent. You may not qualify for pension credit

Meanwhile for the resident who, for whatever reason, has not saved for an additional pension, they will pay no rent, no Council Tax, no Income Tax, and they will receive pension credit.

As there will no be many people in social housing who have an additional pension of more than £8500 pa, then this will hit just about everybody.

Part of the problem is that, although the state pension is not in-it-self taxable it is, nevertheless grossed for tax i.e. seen as part of earnings. This makes just about everything above a state pension as taxable. To be fairer the state pension should not be grossed for tax purposes

Hello vernony, thanks for your interesting and very concernable posting.

In general what needs to be achieved by Government is a State pension people can live on, based on a working life of NI contributions, in the case of the elderly 30, 40, and 50 years. Also the unjust council tax needs to be abolished and a fair local tax based on ability to pay brought in, and most of all communities should receive more money from central Government, and council houses need to be built universally at fair rents to take people out of the financial trap of the means tested private sector.

However what we British have had care of right wing Tory rule since Margaret Thatcher in the 80's is the private pension, and these are expensive and insecure, today's low waged, and or long term unemployed will be in poverty when they are old.

We are also, believe it or not, a "low income tax" country, and the top get away with paying huge amounts of income tax, and with stealth taxes, the poor are burdened with VAT hikes and other stealth tax increases.

"""Meanwhile for the resident who, for whatever reason, has not saved for an additional pension, they will pay no rent, no Council Tax, no Income Tax, and they will receive pension credit""".

This is because of the means test, and the means test is there to divide the nation pitting one person against the other. Means testing should be abolished.

vernony, If I havent answered your questions as you would have liked, please get back to me and tell me what I've missed, and ill reply as soon as I can.

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