RetireJapan

JimmyK wrote: ↑Sat Sep 21, 2024 3:30 am Triple lock increases for Brits (or those who’ve worked in UK and have paid/continue to pay NI contributions) are most welcome while we tick along towards retirement. Sadly, those who choose to retire in Japan (which is probably many of us, given that we’re members of this forum!) won’t benefit from the triple lock (assuming it’s still in place then anyway) after we’ve hit UK state retirement age. You have to be in the UK, an EU country, or some countries in the commonwealth, unless there’s a change in the agreement between UK and Japan.

Deep Blue wrote: ↑Sat Sep 21, 2024 4:08 am Triple lock will be abolished a long time before I hit state pension age. I think it's unlikely to survive another decade in the current form - and if triple lock persists then something like means-testing will be imposed on top.

In most developed countries, state pension systems are based on contributions, where people earn their pension based on years worked and contributions made. However, some countries incorporate means-tested elements, where eligibility or the level of pension benefit depends on income or assets. Here's an overview of developed countries with means-tested state pension components:

1. Australia
Age Pension: Australia's primary state pension, known as the Age Pension, is means-tested based on both income and assets. The system assesses a retiree’s other sources of income and assets to determine the level of pension benefit they receive. Wealthier retirees receive a reduced or no Age Pension.
2. New Zealand
New Zealand Superannuation: While New Zealand's state pension system, known as New Zealand Superannuation (NZ Super), is not means-tested, there is an income test for those in a specific category where one partner in a couple is not yet eligible for the pension. Therefore, for certain individuals, there are income considerations.
3. United Kingdom
Pension Credit: The UK has a contributory state pension system, but it also offers a means-tested benefit known as Pension Credit. This is available to retirees with lower income to ensure that they have a minimum income in retirement, supplementing the basic state pension if needed.
4. Canada
Old Age Security (OAS) and Guaranteed Income Supplement (GIS): The OAS is a non-contributory pension available to Canadian residents, but it is partially means-tested. If a recipient’s income exceeds a certain threshold, they must repay a portion of the OAS (called a clawback). Additionally, the GIS is a means-tested supplement designed to provide additional income to low-income OAS recipients.
5. Ireland
Non-Contributory State Pension: Ireland has a contributory pension system, but it also offers a means-tested Non-Contributory State Pension for those who do not qualify for the contributory pension due to insufficient social insurance contributions. Eligibility depends on income and assets.
6. United States
Supplemental Security Income (SSI): While the primary U.S. pension system (Social Security) is not means-tested, the Supplemental Security Income (SSI) is a means-tested program designed to assist the elderly, disabled, and blind with very low incomes and limited resources. SSI recipients can also receive Social Security benefits, but SSI itself is based on need.
7. Japan
Basic Pension and Old-Age Welfare Pension: Japan’s pension system is primarily contributory. However, the Old-Age Welfare Pension is a form of assistance for elderly individuals who are not eligible for the full pension due to low or no contributions. This is means-tested, and the benefits depend on the applicant’s income and assets.
8. Germany
Basic Income Support for the Elderly (Grundsicherung): Germany's state pension system is contributory, but for retirees with very low pensions, there is a means-tested top-up called Grundsicherung, which provides a minimum income level for retirees in need.
These systems demonstrate that while many developed countries have contributory pension systems, means-tested elements are often introduced to provide additional support to low-income retirees. The specifics of each program can vary widely based on factors like residency, income, and assets.

Deep Blue wrote: ↑Sat Sep 21, 2024 9:06 am I wondered which other countries might have means-tested pensions other than Australia.... this is what ChatGPT spat out

RetireJapan wrote: ↑Sat Sep 21, 2024 10:16 am

Deep Blue wrote: ↑Sat Sep 21, 2024 9:06 am I wondered which other countries might have means-tested pensions other than Australia.... this is what ChatGPT spat out

That looks mostly to be the opposite of means tested pensions -extra welfare type payments for people with low incomes

though mostly the means-tested parts look like top-ups rather than mean-testing the main state pension.

Deep Blue wrote: ↑Sat Sep 21, 2024 11:51 am

RetireJapan wrote: ↑Sat Sep 21, 2024 10:16 am

Deep Blue wrote: ↑Sat Sep 21, 2024 9:06 am I wondered which other countries might have means-tested pensions other than Australia.... this is what ChatGPT spat out

That looks mostly to be the opposite of means tested pensions -extra welfare type payments for people with low incomes

Yes, didn’t you read that is what I wrote?

though mostly the means-tested parts look like top-ups rather than mean-testing the main state pension.

Deep Blue wrote: ↑Sun Sep 22, 2024 3:08 pm I thought it did a bang up job of highlighting only Australia and NZ means test contributory state pensions.

I’d be very interested to know how you’d approach researching this and come up with a better answer in a couple minutes.