State pension is NOT an entitlement – Labour free to means test YOURS | Personal Finance | Finance

I gave some unwanted news in March: the state pension is not a right. This is a state advantage, just like others.

Many readers were not happy. Immediately after the national insurance contributions that lasted for decades, they insisted that their pension was themselves. And the only thing I could say was: I wish it was just.

I’m not the one who decides that, please don’t hit the ambassador. The Ministry of Labor and Pension (DWP) has made it clear as black and white, which defines state retirement as a legally benefit. From where? “Root root within the framework of social security”.

DWP not only plays with words. This changes everything.

Unknown Rachel Reeves escapes from the financial ceiling gap, while British financing is confused. Now it means testing to keep state retirement appropriate.

And benefits can be tested tools. Universal loan, pension loan, housing assistance, Council tax support and income support, including a pile of a pile. So the state may be a pension.

If you refuse to believe that the state pension is a benefit, you are not alone.

The new research of Pension Specialist Just Group, published today, believes that 94% of the state retirees are a right of pension. And frankly, why not?

I think that if I hadn’t been in this. I would be as shock and angry as everyone else. Instead, I’m just getting angry – and I’m worried.

Reeves is trying to find savings. So far it has targeted winter fuel payment, cash Jesus allowance and personal independence payment.

As of March 2027, it plans to slap the inheritance tax on pensions that have not been used. Each of these changes will hit retirees hard.

Here is another common misunderstanding.

Just Group’s research shows that most retirees still believe that state pension is suitable in the long run. Again, the truth is more complex.

Just Group Group Communication Director Stephen Lowe means that increasing long life and falling birth rates will be over 65 by one quarter of the UK population.

Over time, a small number of workers will have to finance an increasing number of retirees.

Remember, there is no pot that pays for the state pension. It is financed only by taxing people at work. If this seems like a ponzi scheme, you’re not the first to think about it.

Lowe says Reeves have four options to keep state retirement affordable: increasing taxes, increasing retirement age, reducing the amount paid or test.

Each one is politically toxic, he says – and right.

But you’ll have to have one or a combination. Tories is already looking at the vehicle test.

The State Pension Inspection will be done within 18 months when all options should be on the table. Lowe’s advice? Create special retirement and savings to buffer against possible interruptions.

But this is impossible for those who are already retired.

If the test becomes norm, the universal support principle for retirees will be overcome and potentially will make millions of people worse.

It means that the test is complex, so most governments avoid it. Nevertheless, Reeves now means testing winter fuel payment. Some can see this as a worrying precedent.

Personally, I think the testing of the state pension will be too many steps for the challenging British (although Aussies manages it).

Others vary. With the retirement salary, which is defined as a benefit, not a right, the worker has the power to reshape it, but it considers it appropriate.