State pension means testing; What you need to know

Everyone gets the same amount of state pension regardless how wealthy you are. As long as you’ve paid 35 years of national insurance contributions that is. But what if this were to change in the future such that the amount you get depends on how much other income you have.
In this video, go through the likelihood of the state pension being means tested and what it could mean for you if it does.

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Thanks to those of you who are pointing out that not everyone receives the same amount of state pension if you were previously on the old state pension. This is correct.
Video on why the state pension is a benefit

timestamps
0:00 intro
1:23 the current picture for the state pension
2:22 what portion of retirement income is it?
4:24 should everyone get the same?
8:47 what could means testing look like?
11:11 would means testing discourage pension saving?

[DianneSullivan]

Thanks to those of you who are pointing out that not everyone receives the same amount of state pension if you were previously on the old state pension. This is correct.

[Agatha.wayne]

Thank you. Just what I needed to watch. My hubby and I are directors of our farm business and own property, plus small pensions. I am nearly 52, hubby is 55. We have started to save to retire from the farm, and possibly live on rental income, I'd really appreciate you go LIVE and talk about how to earn passive income online and retire comfortably, let’s say $1M.

[gingerkilkus]

In the 1990s I sold pensions on the strength that the tax free lump sum would pay off most if not all of the mortgage and leave the investor with a pension for life. Most were over a 40 year term plus, I was not alone.

[kortyEdna]

The thought of retirement makes me cry. My apologies to everyone who have retired and filing social security during this time after putting in all those years of work just to lose everything to a problem you weren't to blame for.it's especially difficult for people who are retired.

[deafmettle]

It's simple - I've paid national insurance from having a job from the age of 16 with the assurance that I would benefit from that when I retire. Having done that I expect to receive a state pension when I retire. That was the deal we were sold and the government needs to honour it.

[captainplatinum]

It’s not a benefit . We contribute to it . We earned it!

[dalek]

The problem I have with this is the people who have saved and gone without to make provision are penalised. The people who have not, get the reward. That's never right.

[Jack-wkyi]

If state pension becomes means tested. There is no point saving. Just piss it all up the walls. Then you will get a state pension.

[SirHargreeves]

God bless this country. Once again, you pay more and more in but get less and less out.

[colinlacey]

Millions of pensioners in this country Mr Starmer. We will not forget

[abbiscuit]

It is a pension and NOT a benefit. It has been paid for

[buddydoodle]

Yes, it doesn’t matter how wealthy you are you when you retire, you still worked for the pension

[advent]

Yes I get the full pension having worked 51 years, Left school at 15, Never long enough out of work to bother with trying to get any social security or dole money, always taught to to look after myself, Built my own house at 25 years old, 4 bed, 2 bathrooms on a 350 square meter plot. I worked 7 days a week to do this to give my family a decent home, was a bricklayer, now retired, 68 years old, My wife 69 looked after my daughters children for all the years she was working to give them a chance to better themselves and then when it came to retirement she was denied a full pension, yet lazy Bar-stewards who never worked a day in their lives, get a full pension!

[hilarygibson]

Along with most other comments on here, i would be against means testing the state pension. I worked ridiculously long hours, lived frugally so i could put money in a pension, never a high earner. People next door could have done the same but chose to go on long haul holidays, replace their car regularly, upgrade their kitchen. It cant be right to penalise savers by subsidising spendthrifts

[Probodger]

On average people only collect around 8 years pension before they die. A working person, works for around 45 years before retirement. in that time they have paid into the country through national insurance, income tax, sales tax, VAT etc. In other words they have contributed to society. The least the country can do is let them enjoy their last remaining years in peace and comfort.

[rubberyowen]

I already am means tested. Having a works pension that combined with the state pension I have to pay income tax because the two combined take me over the tax free threshhold. You can't beat the system, happy days as usual. DOB 1956.

[jaybo]

The government has to stop penalising the working

[joannelockwood]

In the 70’s we paid taxes and we had NHS dental care; public care homes for the elderly; a good affordable transport system; people retired at 60 for women and 65 for men; affordable housing, either private or rental, free higher education; legal aid, and I could go on and on. We have lost so much, yet we pay much more tax and get a lot less. I would guess that most people look forward to retirement, particularly those whose jobs offer little in stimulation and are heavy work. To suggest that the state pension is means tested is an insult to the public they are supposed to represent. Especially in the light of the money wasted on a flu virus and these terrible wars. It’s anti human. It is absolutely clear that the government do not want our children to inherit.

[aficio]

Perhaps for starters we shud look at the golden pensions paid to ministers and civil servants. Funded at great cost by the tax payer. Then look to reducing the state pension.

[JohnJones-cpwh]

If that`s the case, all contributions made to state should be returned with interest.