does benefits and pension vary accoding amount of ni paid

iinvestor

does state pension and benefits vary according the amount of NI contributions paid

I.E.

Jane works and has paid in £150 per year for 30 years in NI contributions &

Claire works and has paid in £600 per year for 30 years as she earns more then Jane

would they both get different amounts of state pension and different amounts of benefits if they were ill, assuming both of them have no assets or savings?

seven-day-weekend

They would get the same amount of basic State Pension, but assuming Claire was not in an opted-out occupational scheme, she would have more S2P (formerly known as SERPS, the second State Pension).

Not because she has paid more NI but because she has earned more than Jane.

Other contributory benefits I think are the same amount whatever you have paid in, or earned.

EdInvestor

iinvestor wrote: »

would they both get different amounts of state pension and different amounts of benefits if they were ill, assuming both of them have no assets or savings?

Benefits tend to be split into 2 kinds - contributory and income based.The contributory benefits are not means tested, the income based ones are. The state pension (contribution based) is not means tested, but pension credit is.

Perhaps we should call the non-means-tested payments "entitlements" rather than benefits.

The only area where there would be a difference between two NI contributors would be the level of earnings-related additional state pension (S2P).

iinvestor

thanks- very helpful