Pensions

I think that there is a problem hidden from most people reaching retirement. Now many of us will have quite substantial employee pensions, deferred pay if you like. Now we will not pay any national insurance on this incme. When we reach sixty five, for men, we will receive our state pension, which we have paid for. Now this will I understand be paid gross, without deduction of tax. Now my point is that I already receive my pension as stated earlier and this is, because it is above the lower earnings limit, already taxed. Now surely I will have to go through the rigmoral of receiving my state pension gross and then making arrangements to pay the tax due on it. Many people will spend their state pension without realising that there is a tax obligation.

This is absolutely chaotic and proves to me yet again that the government has failed completely to understand the changes which have taken place in society since 1906 when the state pension first came about. It should not be about making the welthy even wealthier, it must be paid with UK tax deducted, and it must be means tested.