ChatterBank1 min ago
Wealthy pensions should lose benefits
Says the Institue for Fiscal Studies:
// The Institute for Fiscal Studies argued that “relatively well-off” pensioners had benefited more than other age groups from lower tax rates and higher incomes in recent years and should make a greater contribution to supporting the country's ageing population.
Funds spent on “universal” benefits for pensioners, such as the winter fuel allowance, should be redirected to protect the elderly from being forced to sell their homes to fund old age care, the think-tank suggested.
Capital gains tax could be applied to property inherited by children when their parents die, while National Insurance could be levied on income earned by workers of pension age, the institute proposed. //
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Anyone disagree?
// The Institute for Fiscal Studies argued that “relatively well-off” pensioners had benefited more than other age groups from lower tax rates and higher incomes in recent years and should make a greater contribution to supporting the country's ageing population.
Funds spent on “universal” benefits for pensioners, such as the winter fuel allowance, should be redirected to protect the elderly from being forced to sell their homes to fund old age care, the think-tank suggested.
Capital gains tax could be applied to property inherited by children when their parents die, while National Insurance could be levied on income earned by workers of pension age, the institute proposed. //
http://
Anyone disagree?
Answers
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With regard to property inheited by children when the parents die I would say that would be OK if the children have not done anything with regard to caring for their parents.
I was retired early at 51 and my wife passed away 3 months later.
My father needed care a few months later and I sold my house and went to live with him. I had inherited my mothers share of the property.
Unfortunately he got dementia which got worse and 6 years later he had to go into care and he passed away 6 months later. I then inherited his half of the house.
The social worker was not very pleased that he had little money but had a half share in a £350,000 house which the council could not sell as I was living in the property. I had spent about £70,000 on repairs to the property.
Regretably 3 months after my father passed away my mother in law passed away and she left me with half of a similar price house.
I sold the house my father and myself were living in and moved into my in laws house and I know as the law stands at present this house can not be sold by the council if my father in law has to go into care.
To date I have spent about £40,000 on repairs to this house.
What did annoy me was when the Social Worker assessed my father she said I was getting a free house at the tax payers expense.
This is not true. Most of my friends who I worked with got other jobs and could be earnng money till they are 65.
I am now coming up to 60 and have not been able to work for nearly 9 years and while I am caring for my father in law I will not be able to work.
I am therefore relying on the inheritance to compensate for my lost years of my working life and further pension I could have accumulated.
Mark
I was retired early at 51 and my wife passed away 3 months later.
My father needed care a few months later and I sold my house and went to live with him. I had inherited my mothers share of the property.
Unfortunately he got dementia which got worse and 6 years later he had to go into care and he passed away 6 months later. I then inherited his half of the house.
The social worker was not very pleased that he had little money but had a half share in a £350,000 house which the council could not sell as I was living in the property. I had spent about £70,000 on repairs to the property.
Regretably 3 months after my father passed away my mother in law passed away and she left me with half of a similar price house.
I sold the house my father and myself were living in and moved into my in laws house and I know as the law stands at present this house can not be sold by the council if my father in law has to go into care.
To date I have spent about £40,000 on repairs to this house.
What did annoy me was when the Social Worker assessed my father she said I was getting a free house at the tax payers expense.
This is not true. Most of my friends who I worked with got other jobs and could be earnng money till they are 65.
I am now coming up to 60 and have not been able to work for nearly 9 years and while I am caring for my father in law I will not be able to work.
I am therefore relying on the inheritance to compensate for my lost years of my working life and further pension I could have accumulated.
Mark
If I could be sure that my winter fuel allowance etc went to help someone in genuine need, I might support this. I don't include in that people who have had a similar career path to me but chose not to prepare for the old age and are now hard up, nor do I include those who prefer not to work, the list could go on. Hence, it goes to my daughter who, for a few years, is in need of support for her and my grandaughter.
Hi Zebo
I have to agree with you.
I joined the pension scheme the day I started work and paid AVC's for years and my parents / in laws did the same.
Unfortunately due to caring responsibilties / redundancy come retirement my working life has been cut short.
As a family we have provided for ourselves and I am now in a reasonable position but it does annoy me when some of the people I worked with are complaining that I have a good house etc when they are now living in virtual poverty because they wanted to just live for now and not think about the future.
Mark
I have to agree with you.
I joined the pension scheme the day I started work and paid AVC's for years and my parents / in laws did the same.
Unfortunately due to caring responsibilties / redundancy come retirement my working life has been cut short.
As a family we have provided for ourselves and I am now in a reasonable position but it does annoy me when some of the people I worked with are complaining that I have a good house etc when they are now living in virtual poverty because they wanted to just live for now and not think about the future.
Mark
I give my winter fuel allowance to a charity so it makes no odds to me if it's paid or not. It does rankle slightly that my next door neighbour, whose husband made no pension provision, gets everything paid for, whilst I, who contributed a considerable amount of my salary into a pension scheme, even when times were tough, has to pay for everything.
My view is the more taxes / national insurance you have paid the higher your state pension should be.
If you have paid nothing into a private pension scheme or paid natonal insurance contributions you should not have any pension or pension credits unless there has been a good reason like disability.
Mark
If you have paid nothing into a private pension scheme or paid natonal insurance contributions you should not have any pension or pension credits unless there has been a good reason like disability.
Mark
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