All posts tagged: pension

Plans to tamper with the pension triple lock might not be as dangerous for Labour as some believe

Plans to tamper with the pension triple lock might not be as dangerous for Labour as some believe

Published by Sam Flores

When Prime Minister Andy Burnham told the Labour conference that he is going to change the state pension’s triple lock mechanism, the backlash was immediate. For 15 years, the triple lock has been one of the few genuinely untouchable policies in British politics. Sharon Graham, general secretary of the Unite union, warned that Burnham’s plans could amount to “electoral suicide”. And Reform UK’s leader, Nigel Farage, said the prime minister was considering “an offensive against our elderly”. But, interestingly, the public’s reaction has been considerably more positive, reflecting changing views over what Britons consider fair and acceptable around elderly care and incomes. Despite some of the headlines, the triple lock is not being scrapped. Rather, the government’s proposed reform from 2030 envisions the state pension rising each year by the highest of inflation, 2.5%, or whatever is needed to keep pace with earnings. What is being scrapped is the mechanism that pushes the pension ever higher relative to wages. Under the current rules, whenever inflation or the 2.5% floor outpaces earnings growth, the pension gets …

The UK’s pension triple lock has done its job and needs to be retired

The UK’s pension triple lock has done its job and needs to be retired

Published by Sam Flores

The UK’s pension triple lock has only been in place for 15 years. But it’s done the job it was brought in to do, and now it should be scrapped. So the prime minister is right to want to change it. Because while it’s been widely treated as politically untouchable, the triple lock is very expensive. That’s not to say it was unnecessary. At the time that it was introduced in 2011 (by the Conservative-led coalition) to address the problem of pensioner poverty, the state pension was equivalent to only a sixth of national average earnings. To reverse the decline of the pension relative to earnings, the triple lock mechanism meant that every year, state pensions would rise by whichever is the greatest of three measures: 2.5%, the rate of price inflation, or average earnings growth. The overall idea was to reduce poverty and ensure that pensioners benefited from rising prosperity, if and when the economy grew. Individually, those measures were introduced for slightly different reasons. Increasing state pensions in line with price inflation for …

I’m a state pensioner paying HMRC £129.60 in tax — it’s not fair | Personal Finance | Finance

I’m a state pensioner paying HMRC £129.60 in tax — it’s not fair | Personal Finance | Finance

Published by Sam Flores

David Ives is being forced to pay tax on his State Pension after suffering a stroke (Image: Lyn Christiensen) An elderly man who worked since he was 16 has express his frustration at having to pay tax on his State Pension. David Ives, 71, a retired central heating engineer from Minehead, Somerset, has an income of £13,199, made up of the State Pension and personal allowance. He has been sent a demand from HMRC for £129.60 in tax. His long-term partner, Lynda Christiensen, 73 has been left angered by this as he only received £989.21 last April, and did not receive the increased State Pension of £1,015.56 until May this year. Mr Ives said: “I’m very frustrated that I have got to pay tax after all those years of paying tax, that I get hold of a pension and I get taxed.” Money Saving Expert’s Martin Lewis has said that it is likely the State Pension will rise by 3.9% next April, which would take the full new payment to just over £13,000. But the …

‘Blind spot’ pension warning issued as Brits told to do one thing | Personal Finance | Finance

‘Blind spot’ pension warning issued as Brits told to do one thing | Personal Finance | Finance

Published by Sam Flores

Pension holders could be missing retirement money after new research found 74% of people living abroad have never reviewed their UK pensions. Research by the financial advisory firm deVere Group warned that the company’s research of more than 750 UK pension holders living overseas found most had failed to check their pension pots. Only 7% said they knew where all of their UK pensions were. The research found 68% had worked for three or more UK employers before leaving the country, which means they could have several separate pension pots with different providers. Nigel Green, CEO of deVere Group, has warned of the “blind spot”, saying that people could have pensions sitting untouched for years without realising they had multiple pots. He has urged both UK residents and expats to urgently review every pot they have built up. He said: “74% checking nothing is a mirror held up to how the whole country treats pension planning. “Anyone who has worked for three or more employers should assume there are pensions they are not thinking about …

Nurse stole £185k in pension payments by shaving head to fake cancer

Nurse stole £185k in pension payments by shaving head to fake cancer

Published by Sam Flores

Amanda Reid has claimed that she has Munchausen’s and that she was not motivated by financial gain A children’s nurse has been struck off after making £185,422.95 in pension payments by shaving her head daily to pretend she had terminal leukaemia. Amanda Reid convinced her family, children and professionals that she was “at the point of death” despite knowing she was not, the Nursing and Midwifery Council (NMC) committee found. A total of 16 medical letters were forged to persuade her GP practice she was seriously ill, which included logos from the Spire Hospital Edinburgh. To look as if she was battling the blood cancer, she took weight loss medication and shaved her head daily. The former healthcare worker in Scotland, who claimed she has Munchausen’s syndrome, also fraudulently acquired controlled drugs from the NHS during her more than three-year offending period. She was jailed for two years at Livingston Sheriff Court for falsely claiming to the Scottish Pensions Authority that she was terminally ill with leukaemia and therefore entitled to specific payments, the tribunal …

DWP confirms 2.2 million pensioners must pay back winter fuel payments | Personal Finance | Finance

DWP confirms 2.2 million pensioners must pay back winter fuel payments | Personal Finance | Finance

Published by Sam Flores

State pensioners who earn too much and fail to opt out are being targeted to repay their winter fuel payments (Image: Getty Images) Fresh figures reveal that over 2.2 million individuals are expected to face repayment of their Winter Fuel Payments. The Department for Work and Pensions has today published new data demonstrating the number of recipients following the payment’s restoration for millions last year. During the previous winter, 10.9 million people received between £100 and £300 towards heating costs. This represented a significant increase from 1.3 million the previous year, when eligibility was restricted to Pension Credit recipients only. However, DWP estimates indicate that millions will be required to reimburse the payment. Anyone earning above £35,000 in taxable income who fails to decline the payment will face repayment through taxation. As a result, recipients of £200 will be repaying at approximately £17 monthly. From April 2027 onwards, however, HMRC will begin recovering Winter Fuel Payments in advance via PAYE within the same tax year of distribution. This means some individuals could effectively face double …

How will bond market turmoil affect your mortgage, pension and savings in UK? | Bonds

How will bond market turmoil affect your mortgage, pension and savings in UK? | Bonds

Published by Sam Flores

The bond market sell-off has sparked fresh fears of higher borrowing costs for UK households. We look at what the turmoil in financial markets could mean for your mortgage, pension and savings. Cost and choice of home loans Experts think that the pricing on new fixed-rate mortgages could start rising again as a result of the bond market turbulence. That is because lenders get funding for home loans from the money markets. Fixed mortgage rates are largely influenced by “swap rates” rather than the Bank of England base rate. These wholesale rates can react rapidly to changing inflation expectations and financial market uncertainty. The spike in UK government borrowing costs has caused swap rates to jump sharply over the past week. On Thursday, Coventry Building Society was the first notable player to move, warning brokers of its intention to hike fixed-rate deals for new and existing borrowers from Monday. Other lenders are expected to reprice their mortgages in the coming days. This is Groundhog Day for borrowers, many of whom will feel as if they have been …

Dying Falklands veteran: Pension firm won’t give me my £100k

Dying Falklands veteran: Pension firm won’t give me my £100k

Published by Sam Flores

A terminally ill Royal Navy veteran given months to live has said it is ridiculous he has not yet been paid his pension. Andrew Rossiter, who is desperate to access his fund of more than £104,000, accused the firm in charge of his retirement plan of procrastinating intentionally. Mr Rossiter, who has pancreatic cancer and is receiving palliative chemotherapy, said the pension company had told him for four weeks that he had no pension. It has since said the paperwork he has submitted is not adequate for him to access the money, despite HMRC stating otherwise, the 62-year-old claimed. Mr Rossiter, who served in the Falklands War, said barriers were being put in his way. He said: “They want me to die so they don’t have to give me any money. They’re just batting me away. It’s ridiculous. I haven’t got long to live. They know this and they can drag this out for years. It’s nasty.” ‘Company found fund after four weeks’ The father of two from Gosport, Hampshire, served in the Royal Navy …