Is Burnham about to punish pensioners?
Labour tax advisor Dan Needle has suggested to Burnham that means testing the state pension could save £1 Billion to fund more freebies for those on benefits. I have a serious problem with this. Firstly Labour consider a pensioner couple with a combined gross income of £51,376 to be rich. However the retirements Standards states that for comfortable retirement a couple needs a gross income of £60,600 per year which is greater than the threshold Labour consider pensioners to be rich. If you engage with any adviser for retirement planning they factor in the state pension into the mix. The current state pension is £241.30 per week per person so assuming the couple have contributed enough then each will receive £12,547 per year which combined is £25,095 per year. That's 41% of the £60,600 joint income to be considered to be comfortable and 48.8% of Labour's rich pensioner threshold. So means testing eligibility for the state pension could actually leave those who have plan...