I’ve been thinking about our UK state pension.
Forget the funding of it for a moment.
So currently UK minimum wage is £12.71 (I believe) which equates to approx £24,000 (before tax) annually.
I believe current single person SP works out at approximately £12,500 annually.
So, bearing in mind that I am assuming minimum wage is calculated based on what our government believes is the minimum amount of money the average person requires to live, isn’t setting the SP at the current rate just a tad insulting?
I understand that most pensioners might have repaid their mortgages but many have rent, but we still have many of the same costs as prior to retirement. Given that there are still some who don’t have massive private pensions yet don’t qualify to any other financial help.
Do we think the SP should actually be set to mirror minimum wage?
(Ignoring the fact that the country cannot afford this, nor according to some even maintain it at the current rate)