The UK has one of the least generous state retirement pensions in Europe, yet we're told it's unaffordable.

 

Although the UK state retirement pension is one of the lowest in Europe and British workers retire much later, we're constantly told by those that govern us, that the UK state retirement pension is unaffordable and unsustainable in the long run.

The old basic state retirement pension pays as little as £169.50 a week and those in receipt of the new state pension receive £221 a week. Both pensions are well below the national minimum wage. The British government must have saved billions of pounds when they raised the women's state retirement age of 60 years in line with the men's retirement age which is now 66 years. The British government also saves millions of pounds each year because people don't claim the state benefits to which they're entitled.

There has been talk of means-testing the UK state retirement pension or means-testing the 'triple-lock' that uprates the state retirement pension. The Starmer Labour government have said that they will guarantee the triple-lock during their term of office and have no plans to means-test the state pension. But Starmer can turn on a dime, and he can break any pledge or promise that he makes. In opposition Labour campaigned to retain the winter fuel allowance and then means-tested it. They also campaigned for fair compensation for WASPI women and then refused to pay them compensation. Labour calls this good politics and not gutter politics. You promise the people one thing to get their votes and then when you get into power, you shaft the people who voted for you.

The UK state retirement pension is also taxable. At present the bottom rate of income tax has been frozen at £12,570. When the UK state retirement pension reaches this level or above it, pensioners will liable to pay income tax. They will be expected to complete a tax return on paper or online. Many pensioners will be unfamiliar with completing a tax return as they will have had income tax deducted via PAYE as employees. Completing a tax return is not easy and many will not even understand the questions on the form. HMRC provide little or no help with completing a tax return. Many tax offices are no longer open and it can take biblical ages to get through to HMRC by telephone. What pensioners should be aware of, is the massive fines that people can incur if tax returns are not completed or returned on time. Having to deal with HMRC can turn into a nightmare.