State pension means-testing 'big fear' for Britons - How to 'secure a retirement income'
Pensioners talking to Patrick Christys about the Winter Fuel Payment cut
GB NEWS
The means-testing of the state pension remains one of the British public's "biggest fears" going into next week's Autumn Budget, a recent survey has revealed.
Britons are being urged to "secure their income" by carrying out a specific task ahead of Chancellor Rachel Reeves' fiscal statement.
In a poll of 1,000 adults conducted by Skipton Building Society, 30 per cent of respondents fear that the state pension could become means-tested in the near future.
In comparison, the public was also concerned about the state pension age rising and the triple lock being removed at 36 per cent and 28 per cent, respectively.
Ahead of the 2024 General Election on July 4, Sir Edward Troup, a former executive for HM Revenue and Customs (HMRC), suggested the retirement benefit should be means-tested.
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Rachel Reeves has been urged to stay away from peoples' pensions in her October Budget
PATroup, who has reportedly advised the Chancellor in the past, believes older people should "contribute possible more" to the state.
During an interview with LBC, he said: "If they've got income, [they] should be contributing at least as much, and possibly more than those people who are working, bringing up families and are really contributing now to that country."
Through the Department for Work and Pensions (DWP), older people are entitled to extra support if they are on low income via benefits such as Pension Credit.
In comparison, everyone is entitled to the state pension once they reach 66.
However, the eligibility age is expected to be raised in the years to come.
Means-testing the state pension would mean only those on low incomes would be entitled to payments.
Britons currently need at least 35 years of National Insurance to get the full amount.
Steven Cameron, the pensions director at Aegon, outlined what pensioners can do to "guarantee their income" if means-testing becomes a reality.
"Any suggestion that it might be ‘means tested’, so reduced or even removed for those with other retirement income above a given level, would send shockwaves through the pensioner community," he said.
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Means-testing the state pension would be one of the public's "biggest fears"
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"One way to secure a guaranteed income is to buy an annuity.
"Based on current annuity rates, a couple would need half a million pounds to ‘buy’ their state pension privately.
"And while this looks huge, it’s based on terms available today which are much better than they were a few years ago as annuities cost less when interest rates are high.
"With expectations that interest rates are likely to fall back to lower levels in the coming years, the cost will likely rise, making the state pension even more valuable."You may like
