Jo Cumbo, in this morning's FT, reporting another serious murmuring about the state pension becoming means tested. This link may work: https://www.ft.com/content/bd358400-5a77-11e7-b553-e2df1b0c3220 .
If it comes to pass, we'd probably all be very very glad indeed that we contracted out.. wouldn't we?
One of the more extreme options outlined in the report is to keep the state pension age at 65 and pension costs per worker at an annual £2,500. This would see means-testing begin for those with an annual income of £30,000 or more. A compromise would be to means test the state pension gradually for higher-rate taxpayers from 2019. Initially they would give up only £1 of state pension for every £10 of income received over the higher band threshold. After 10 years, this ratio would be reduced to 1:1.
“This would result in much slower state pension age rises, with a state pension age of 66 by 2030 and 67 being reached in 2035, then 68 in 2045, but with no further rises required until 2054,” Prof Sweeting said. The government is yet to publish its response to last year’s pension age review, after missing a legal deadline of May 7. On Monday, the Department for Work and Pensions said it was still reviewing evidence submitted for the state pension age review and a decision would be taken in due course.
Earlier this year, the OECD said the UK should not give a state pension to the rich and should instead use the money to boost payments to the poor.