PENSIONERS.

Evening Star, Issue 25617, 18 October 1945, Page 6

PENSIONERS.

TO THE EDITOR. Sir, —Mr Torley, acting registrar of the Social Security'Department, quotes Mr Nash as saying that “ no person who was drawing social security age benefit could have more than a person who had saved his own money, because there was an automatic adjustment to bring such persons up to £l3O net in the case of a single persorf,” etc. How nan this statement be reconciled with the fact that a man who has “ saved his own money ” to the extent of (only) £1,345, invested it, and draws from it £4O per annum (his sole income) cannot get a penny of the age benefit P The reduction of the pension bv £1 for every £lO of capital owned, over and above the exemption of £SOO, means that the man who has “ saved his own money ” (£1,345) is considered to be a “ capitalist,” and must get rid of his surplus wealth (£S4S) before he is worthy of receiving the full pension of £B4 10s. “ Passing rich on £4O a year.” he would no doubt like Mr Torley to .explain in simple English Mr Nash’s misrepresentation of the social security regulations.—r am, etc., Facts. Please.

P.S.—-Where is the inducement \o a wage-earner to save, say, £2,000, which will bring him in £6O annually in interest, and no pension, when by living more expensively and saving only £so{) he will get £ls in interest, plus a pension of £lO4 (under the new proposals), a total of £II9?—F.P. ' October 16.

[The acting registrar replies.—" The Social Security Act provides that a benefit is to be reduced by income iu excess of £1 a week and by capital, other than any interest in land, in excess of £SOO, the capital deduction being £1 per annum for each £lO over that figure; and also provides that the capital deduction must be made where that is greater than an income deduction. A benefit of £2O per annum would be paid where the ehargeabl« capital amounted to £1,345. The statement which was the subject of tha original letter, from a pensioner was dealing only with income. To be disqualified from receiving, any benefit a person would require to have chargeable assets of £1.540, and could hardly be regarded as being in a worse position than the other, who has nothing but the age benefit of £2. a week."—Ed. E.S.] '