Quote Originally Posted by Omegstrat6 View Post
Pensions always going to be a bit of a tricky one. Much like the case of the NHS, the circumstances that originally led to the need for the creation of the state pension have changed dramatically since. The state pension-along with a raft of other social measures-was first brought in to offer some much needed assistance to the massive numbers of the poorly paid working classes. Prior to this many ended their days in the workhouse if family could not support them. Today, whilst there are undoubtedly very many who still financially rely heavily on the state pension, there are also far more who do not, mostly through having additional private or company pensions. The problem, of course, is that these people have worked and contributed to the state scheme too so they have a justifiable argument to say that they are entitled to a state pension. As Mick would argue, it is then up to them how they chose to use that money.

Maybe the crux of the issue is to look at the initial reasoning behind the creation of the state pension in the first place which was clearly to help those most in need of financial assistance in their old age. With an ageing population it is obvious -like the NHS-that the increasing financial burden of the current system is ultimately not sustainable however.

I get why people are angry that the shysters who have never really worked still get to draw it but in reality these are a comparatively small minority who get away with playing the whole benefits system. But there are still many who have worked hard all their lives but who have not been fortunate enough to benefit from decent company pensions or able to afford private ones. Contrary to what right wing Tories like Truss spout, profit is too often made at the exploitation of others (e.g. poor pay) and certainly working hard is no guarantee of either success or financial wealth or security.

In addition there is also the issue of public sector pensions which are obviously funded by tax payers. Whilst the actual salaries may not always be as competitive as those in the private sector, this was frequently compensated for in more generous pension schemes. Whilst many private company pension schemes have been consistently eroded over the years, in comparison, these public service schemes have enjoyed measures of protection.

Given the cost of the state pension maybe it is now time -like the NHS-to consider some kind of means testing for receipt of it? The amount would then be graded accordingly rather than an all or nothing situation. Of course it would still have to be funded by NI contributions which would mean that the majority paying into it may not receive anything back but if this was to provide a safety net for the most vulnerable why not? Our taxes fund other social benefits after all.

Of course, in a fairer world, everyone would be paid a decent wage with access to a decent company pension scheme which would then ease the pressure on relying on state benefits but that ain't ever going to happen.

Very good post and agree with you completely