Allira
That was in reply to thi:
Agreed. By the end of a working life, though, it doesn't matter how much you have paid in - it is the number of contributions, not the value of them that counts towards a full pension. I think this is fair.
Yes, it is fair except that the goalposts keep moving!
Yes, moving goalposts on something as important as pensions is unfair. People need to make plans, and can only do so using the information they have at the time they make them. It’s all very well people going on about notice, but that’s not the point really. Major changes should be phased in very gradually, so people don’t have their lives completely disrupted when it’s too late to compensate.
The i is saying that Badenoch is talking about means-testing the triple lock. Whilst I don’t think she will ever be PM, often floating ideas like this can precipitate their coming into being, and for those who have already changed plans because of the rise in the pension age it would be a huge blow to have them exploded again in this way. Those saying that people with occupational pensions ‘can afford it’ are ignoring the fact that they have retired on the assumption that their outgoings will be covered by both a state pension and the one they have also paid into. Occupational pensions are not free, which seems to get forgotten at times. Telling them now that the money they paid into their work pension was wasted would be a travesty.
I think that telling people who lived according to the rules of the day (whether that meant leaving the workplace on marriage or buying a top-up pension) that they are going to be penalised for doing so is wrong.
Isn’t there a formula that works out at retirement whether people are better off under the old system (pre-1996) or the new one and defaults to the higher figure? If not, there should be, so people don’t have their plans disrupted. Otherwise people should get what they were told to expect.
Those who retired at 60 didn’t have to go back to work when the age changed (and I’m not saying they should have!). Their (unwritten) contract was honoured.
All the same, the principle I was talking about is one where the number, rather than the financial value of NI contributions count towards the amount of pension people get. It would be very wrong if low-paid workers had to work for longer than higher-paid ones to get the same amount.