BBC News - Vince Cable vows 'decent' state pension for allThe government is planning a "very radical" overhaul of the state pension, Business Secretary Vince Cable says.
He did not confirm newspaper reports that it could rise from about £97 a week for a single person to £140.
I'm surprised that they are planning to increase the state pension when the coalition is committed to cutting public expenditure and the rising number of pensioners means that the budget is already due to rise considerably.
Is this because Pensioners always vote?
But what happens when there is more money spent on pensions than there is being paid into National Insurance?
We implant crystals into every ones palms and shot them when the crystal turns red?
The idea, as they seem to be explaining it is as follows:
Remove the complex system that currently exists, that does various types of means testing etc...
Increase the pension age to 66
With the money made from the increase, and from the lowered admin this will cover the changes.
Whether or not this is true would be for economists to figure out. Me? I think it seems a little hopeful.
Of course, such a move makes quality of life much more important in later life, as well as the current focus on simple length of life. It'll also be more important to be able to move into more flexible working patterns as people age, provide more holidays and so on. I suspect we'll move into more of a situation where instead of simply ceasing work, people continue to work as long as they can but reduce the hours/amount of work they do.
That's my most optimistic slant on trends.
tmcd35 (25th October 2010)
Forgot that the former Mrs Majors was in it too.
What a great decade the 70s was for sci-fi.
(this calls for a thread of it's own Mr Pies)
as for the administrative burden of means testing, it is what it is....i'd rather spend tens of millions a year to assess incomes and savings of pensioners to ensure that atleast some redistribution occurs via the pension credit. it's bad enough at present that millionaire pensioners get free tv licenses and winter fuel allowances, will even the impact of the pension credit be equalised by this ?
under the proposed system, from what i can gather the low income pensioner may not be worse off, but it also means the better off will be better off by eliminating means testing. expect more of the same from the coalishun i'm afraid, they'll widen the income inequality gap still further under the guise of removing 'complexity' but not really caring so much about the distribution of taxes and benefits. which is the whole ruddy point of taxes and benefits.
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