Pensioners Issues

PENSIONERS may lose their state pension protection due to the coronavirus crisis, an industry expert warned yesterday. Government will have to review the triple lock safeguard as it looks to save cash, former pensions minister Sir Steve-Webb said. (Who now works for a private pensions provider).

Wealthiest are paying just 20% tax, research shows, and the Government is looking to save money from pensioners living with just a state pension.

£1m-plus earners on lower rate of tax than people paid £15,000. The older pensioner on £6,981 with the newer pensioner on £9,110 need to have a means test to pay the gas bill. What an excellent balanced nation we have.

Researchers from Warwick University and the London School of Economics (LSE) analysed anonymised HMRC tax returns of higher earners and found that the average person with £10m in total remuneration had an effective tax rate of just 21 per cent – less than someone on median earnings of £30,000. And a tenth of people receiving more than £1m paid a lower rate than someone earning just £15,000. The extraordinarily rich are able to ‘entirely legally’ reduce their taxes by structuring their affairs.

Other research this year by the Warwick and LSE authors shows that, if capital gains are included, the total remuneration share of the top 1 per cent has been growing faster than previously thought over the past decade, rising from 15 per cent to 17 per cent.

Nearly one in five older households (18%) that own their home outright have incomes below the poverty line.

Almost half (45%) of older households who are still paying a mortgage have no savings.

Close to a quarter (23%) of older households who own outright have no savings at all.