Granny Tax

[maggiebee]

Have listened to all that has been said about this post budget. 5 million pensioners is a very large body of voters. I remember years ago a Red Clydesider calling pensioners "The Sleeping Giant". If they all voted together they had the power to bring any Government down if they so chose. Interesting thought.

[commoner]

On just one single issue such as this many of these millions including me are non taxpayers anyway they get so little money it won't affect them ....and most of the rest would not want a change of government at any price certainly not back to a New Labour one...........I agree the potential is there but you'd need to get them all of one mind....difficult. Just my opinion,.

[factor-fiction]

Maggiebee- I'd find it helpful if you could give an example of how badly these 5 million pensioners will be affected by this and also a reason why pensioners should have a higher tax allowance than low earning workers who are below pension age.

[mike11111]

Judging by the 8 pensioners in front of me at the tobacco kiosk this morning who between them put over £120 on tonight's lottery, not very badly.

[Ellipsis]

We'll all (hopefully) be pensioners in the end but, as someone who is only about half-way through their working life, I'm getting pretty cheesed off paying for the ones who are there already while seeing my own prosepects for retirement looking bleaker and bleaker.

Somebody has to pay to get us out of the mess we're in so why shouldn't the current crop of pensioners pay a tiny amount when, let's face it, they have had a pretty easy ride compared to the pensions nightmare in store for the current working generation and the one following it ...

[TheNovice]

does the state pension count towards the tax relief - or is the tax relief applied to private pensions/savings interest onyl

[commoner]

I didn't say I wouldn't want a labour government 10c.....I have voted Labour for the last 60years..........just trying to make the point that all pensioners wouldn't neccessarily want to change governments over this particular.

[TheNovice]

I do agree it's an anomally that pensioners should get higher tax relief than those that are working. Doesn't make sense to me. As for Labour's policy to get us out of the mess, who the hell got us in it then. Borrowing more to pay off debts doesn't make sense in any language and as for the international community praising, does this include Greece, Spain, Ireland and other bankrupt nations. I was of the impression that others are trying to do what we're suffering now, i.e reducing the welfare state and stop spending money we don't have.

[factor-fiction]

Hi The Novice. State pension is taxable, but only if the total of all pension income, interest, salary and private pension puts the pensioner above the tax threshold. Certainly pensioners who rely solely on state benefits or those who have only modest private pensions won't pay tax and won't be affected by the changes.

[mike11111]

The state pension is fully taxable. If that is your only source of income then you are below the threshold, but if you have another pension the two are combined for tax purposes. Tax is not deducted from the state pension at source, it comes off your other pension(s).

[Ellipsis]

Because, realistically, who else is going to pay for it?

[factor-fiction]

I agree that you have not been irresponsible, 10clarionSt, and would agree that you have been in a position to contribute more than others.
But I would make three points:
1) In general we have not been paying enough into the pot to fund the pensions of an ageing population given the increase in life expectancy.
2) Are you sure of the extent to which these budget changes will affect you these changes.
3) If you are retiring next year you are at least able to enjoy your pension at a younger age than those of us who will have to wait until we are 67/68

[TheNovice]

what people made these mistakes, or are you referring to bankers. They did not give this country the level of debt we now have to get under control. Yes they were culpable in creating the credit crisis but far more was wrong with our 'set up'. And when times are good everyone benefits, don't hear too many people saying they don't want to be part of that!!

[factor-fiction]

I can't see what your alternative is, 10 ClarionSt. Maybe some sort of points system (Credits if you have claimed no benefits, etc)

[TheNovice]

you're not bailing anyone out, the country is clearing it debts or getting them to a manageable level so we can spend money on pensions, health, education and defence rather than it be gobbled up by interest payments which is where we are at present. It was the previous administration who borrowed money like there's no tomorrow in order to (primarily) maintain the benefits culture they created which we all despise so much

[maggiebee]

I'm not taking sides on this one, just thought it was an interesting observation. Not sure pensioners realise how much power they hold in this country if they chose to use it. I'm not a "poor pensioner" as I worked from the age of 17 to 62 and have a modest pension from a job I held for 25 years plus my state pension. I pay tax and am thankful that the personal allowance is rising this year. However I think I'm right in saying that the higher personal allowance for this year will be frozen thereafter? How persioners chose to spend their pension is irrelevant, just as how anyone chooses to spend their salary or benefits is.

[TheNovice]

you wife having to wait a further three years is a separate issue (as with my wife). This is a reflection of the age of equality (a good thing) we live in and is part of harmonising the retirement age. This would have had to happen whoever was in governemnt