My best guess is that the governments of the future know fine well they have two major issues :
1. Backlash from taxpayers ( what about all the prsi I paid ?)
2. The left argue that pensioners need a minimum pension to survive.
Example of possible solution the government will use : Reduce state pension to say 5k ... this way reducing the cost to the state and at the same time not actually disqualifying anybody who has paid their full prsi contributions. But what about the fact that no pensioner could survive on 5k ? ... simply introduce a supplementary pension top-up which would of course be means tested ( top up could be as much as 7/8k ).
The big looser in this scenario - middle income taxpayers who have all cut their cloth to measure and lived within their means and provided for their future only to have their rightful entitlements stolen from them in order to funds persons who have not provided for their future ( understandable some of these are very low income persons ... this is why we need compulsory pension contributions to ensure that everybody is contributing to the solution )
Arguing that pensioners need a minimum pension to survive seems pretty middle of the road to me. I’m trying to imagine how far off the political scale you have to be to consider that position an argument of ‘the political left’.My best guess is that the governments of the future know fine well they have two major issues :
1. Backlash from taxpayers ( what about all the prsi I paid ?)
2. The left argue that pensioners need a minimum pension to survive.
Example of possible solution the government will use : Reduce state pension to say 5k ... this way reducing the cost to the state and at the same time not actually disqualifying anybody who has paid their full prsi contributions. But what about the fact that no pensioner could survive on 5k ? ... simply introduce a supplementary pension top-up which would of course be means tested ( top up could be as much as 7/8k ).
The big looser in this scenario - middle income taxpayers who have all cut their cloth to measure and lived within their means and provided for their future only to have their rightful entitlements stolen from them in order to funds persons who have not provided for their future ( understandable some of these are very low income persons ... this is why we need compulsory pension contributions to ensure that everybody is contributing to the solution )
Arguing that pensioners need a minimum pension to survive seems pretty middle of the road to me. I’m trying to imagine how far off the political scale you have to be to consider that position an argument of ‘the political left’.
It’s 25% higher than the UK minimum income guarantee and that differential has only really materialised due to the fall in GBP since the 2016 EU referendum. Also take into consideration that the cost of living is higher in Irelanddepends on what is meant by " minimum pension "
250 per week is too generous IMO , its about 50% higher than in the UK
If affordability is what you’re looking for, then you could decrease it for the middle classes, which is effectively what the UK has done by having pension credit top ups to produce a minimum income guarantee.I’d agree with Galway blow in ... thst would be a good starting point to reduce the state pension and start to make it affordable
The question I’m posing here is should middle income Ireland consider the merits of not paying twice for only one pension
That’s exactly what I’m anticipating ...this my original question : should those of us currently paying into a private pension consider stopping , take the tax hit now and keep the net proceeds and qualify for the pension which we paid for with our prsi
It’s 25% higher than the UK minimum income guarantee and that differential has only really materialised due to the fall in GBP since the 2016 EU referendum. Also take into consideration that the cost of living is higher in Ireland
But how much do you think it should be?
I would say not on the basis that if you have to be poor to qualify for the maximum pension, it will not be a great standard of living.That’s exactly what I’m anticipating ...this my original question : should those of us currently paying into a private pension consider stopping , take the tax hit now and keep the net proceeds and qualify for the pension which we paid for with our prsi
No you're not. Social insurance contributions as a share of salary in Ireland are among the lowest in the developed world.I’m paying a lot of prsi
You will get a contributory state pension. It might not be as high in real terms as today but the thought that the state will fully default on old people, its most reliable voters, is ridiculous.For a pension I’ll probably never get
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