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A think tank’s call for wealthy pensioners<\/a> to be offered an OBE in exchange for giving up their state pension<\/a> for three years has provoked a backlash from Independent readers. <\/p>\n Compass, a Labour-aligned pressure group, urged new prime minister Andy Burnham<\/a> to introduce the \u2018pensions<\/a> sacrifice\u2019 honour as part of a wider set of proposals, framing it as a way to ease pressure on the public finances by tapping into the same spirit of altruism as groups such as the Patriotic Millionaires.<\/p>\n But our community isn\u2019t convinced. Many argued the state pension<\/a> is something they have earned through decades of national insurance contributions, not a handout to be traded away, and that trying to buy it back with an honour only cheapens the honours system itself. <\/p>\n Others suggested the government look elsewhere for savings \u2013 from benefit fraud to alternative pension reform.<\/p>\n Here’s what you had to say:<\/p>\n Stop treating pensioners as easy targets<\/p>\n As a matter of principle, I would not voluntarily give up a penny of my state pension. Given the choice, I would make it very clear where they can stick the OBE<\/a>. I have paid national insurance and taxes all my working life on the understanding that I would receive a pension when I retired. Whether I can afford to live without it is beside the point. The state pension is something I have earned through years of contributions, not a means-tested handout.<\/p>\n If the government wants to cut welfare spending, there are far better places to start. Tackle benefit fraud, deal with people of working age who could work but choose not to, and look at a system where some households can receive more in benefits than many people earn by working.<\/p>\n Stop treating pensioners who have paid into the system for decades as the easy target while continuing to hand money to people who have contributed little or nothing. When governments spend taxpayers\u2019 money on groups they hope will repay them at the ballot box, it starts to look less like welfare and more like political bribery.<\/p>\n BeamMeUpScotty<\/a><\/p>\n I paid for my parents’ and grandparents’ pensions<\/p>\n Cannot believe I\u2019m reading this. I paid for my parents\u2019 and grandparents\u2019 pensions, and the generations following me will pay for mine. <\/p>\n It\u2019s the system we were signed up to by the government, and we had no say in the matter. Unfortunately there was no option to pay my state pension contribution into a personal fund, although fortunately I did have a personal pension plan running as soon as I started work.<\/p>\n Frankie<\/a><\/p>\n \u00a336k and an OBE is yours<\/p>\n What complete nonsense and devaluation of the honours system. OBEs have been awarded to people who have done some remarkable things in life, whether in sport or public service (political donations). Now you can pick one up for giving up the state pension for a few years. I am pretty sure that\u2019s akin to the cash-for-honours scandal, only the people guilty will be outraged that their honours cost so much! \u00a336k and an OBE is yours.<\/p>\n Slightly Tipsy Max<\/a><\/p>\n I have a better idea<\/p>\n Sorry, an OBE doesn\u2019t cut it. But if the government doesn\u2019t want to pay me a state pension, despite taking national insurance contributions from me for over 40 years, I have a better idea.<\/p>\n Refund me all the employee NICs I have paid for the past 41 years \u2013 adjusted for inflation and notional interest lost. Take no more employee NICs from me (I\u2019m likely to work for at least another 10 years). If the government does this, I will happily rescind my entitlement to state pension.<\/p>\n EGBarry<\/a><\/p>\n So, what would an MBE be worth?<\/p>\n So, an OBE is worth around \u00a337,710.<\/p>\n Therefore an MBE would be worth \u00a325,000.<\/p>\n But for those impressed by \u2018status\u2019, if they defer their state pension by four years, could they then claim a CBE? And for the really, really status-conscious, maybe deferring their pension by five years would gain them a KBE, or a DBE.<\/p>\n How wonderful.<\/p>\n DaveAni<\/a><\/p>\n A really silly suggestion<\/p>\n Unless you think it\u2019s a smart idea to undermine the principle of a universal state pension, this is a really silly suggestion. The basic notion is that we all pay in to state services via our taxes and national insurance contributions, and then get to draw on them when we need them, or in the case of pensions, have the right to claim them when we retire. The only way to make this suggestion work is to make national insurance a voluntary contribution which people could opt out of, and that would be a real can of worms.<\/p>\n Tanaquil2<\/a><\/p>\n This will raise vanishingly little money.<\/p>\n To protect the state pension for future generations, the triple lock needs replacing with an Earnings Guarantee, which raises it in line with national earnings \u2013 whatever the country can afford, and whatever the working population\u2019s income is going up by. Simple, and perfectly effective.<\/p>\n LG1985<\/a><\/p>\n Devaluation of the honours system<\/p>\n The idea is ludicrous. OBEs would soon become devalued and referred to as something like a \u201cpensioner\u2019s OBE\u201d. Pensioners need to stand firmly against this talk of ending the triple lock and make it clear to any party that is contemplating it that it will pay heavily in terms of lost votes. It\u2019s not a serious economic strategy but a crude expression of resentment.<\/p>\n Musil<\/a><\/p>\n Taper the pension instead<\/p>\n It\u2019s far more logical to have a compulsory taper of the state pension, that might, for example, start to kick in if the pensioner has the living wage in terms of their income, and get to zero when they have say \u00a365k or more in income.<\/p>\n Doing this and binning the triple lock in favour of CPI adjustment would save many tens of billions, and lower UK bond yields at a stroke.<\/p>\n wolfie<\/a><\/p>\n They should opt out if they can afford to<\/p>\n Those who benefitted from free university education, a well-funded and well-functioning NHS, the ability to buy a house on a single income and a job for life, before voting over and over again for an economic ideology which has brought this country to its knees \u2013 should certainly opt out, if they can afford to. After all, today\u2019s pensioners \u2013 largely belonging to the baby boomer generation \u2013 benefited from an expanding post-war welfare state that invested heavily in their youth, education, and housing. Research suggests this cohort is projected to take out significantly more in lifetime public spending and benefits than they contributed in taxes.<\/p>\n Ali446<\/a><\/p>\n Some of the comments have been edited for this article for brevity and clarity.<\/p>\n Want to share your views<\/a>? Simply click \u2018log in\u2019 or \u2018register\u2019 in the top right corner to sign in or sign up. Once registered, you can comment on the day\u2019s top stories for a chance to have your opinions showcased.<\/p>\n Want your voice to stand out? Independent Premium subscribers enjoy priority for featured comments. Subscribe here<\/a>.<\/p>\n Make sure you adhere to our community guidelines, which can be found here<\/a>. For a full guide on how to comment, click here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Your support helps us to tell the story From reproductive rights to climate change to Big Tech, The…\n","protected":false},"author":2,"featured_media":856038,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[64,63,99,186,184,185],"class_list":["post-856037","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-au","tag-australia","tag-business","tag-finance","tag-personal-finance","tag-personalfinance"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/856037","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=856037"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/856037\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/856038"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=856037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=856037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=856037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}