It should become a means tested payment? You apply this principle with absolute generality don't you? If for some it should be removed, for others it should be reduced, presumably. So it would simply become part of means tested social payments to the poorest individuals. If their income increased while they were in receipt of a pension, would it be withdrawn?
I guess it comes down to the question of "what is the purpose of the State Pension ?".
If it's to protect people from extreme poverty in old age then giving the state pension to people like my father who has a perfectly adequate (state) superannuated pension doesn't make sense.
If it's to top up the income of everyone in the country over a certain age by £x then we're going about it the right way.
Personally I'm in favour of the state pension being based on income (calling it means tested is misleading because IIRC means testing also assessed assets and so forth. IMO its a pejorative phrase used deliberately to scare) so long as:
- The cost of assessing entitlement does not exceed the savings from making it income based
- That there isn't a positive disincentive to save for retirement (I can imagine a set of circumstances where a £10 increase in income could result in a £11 reduction in benefits)
- People are given time to acclimatise to the changes - say 10 years
- Changes only apply to future recipients
Mrs Don and I hope to have built up enough pension and other savings so that we have a relatively comfortable retirement. In that case we won't need a state pension and that money would be better off going to those in need.