State Pension not a benefit

KenSim

I am very disappointed to see that in todays email that mse refers to the state pension as a benifit.
Part 11 of the 12 winter checks . It is NOTa benifit but has been paid for with 50 years of hard work and NI contributions. The only time it can be called a benifit is by those who have been on social security all of their adult lives and never personally contributed. :mad:

Alter_ego

KenSim wrote: »

I am very disappointed to see that in todays email that mse refers to the state pension as a benifit.
Part 11 of the 12 winter checks . It is NOTa benifit but has been paid for with 50 years of hard work and NI contributions. The only time it can be called a benifit is by those who have been on social security all of their adult lives and never personally contributed. :mad:

It could also be described as a Ponzi scheme.

Malthusian

KenSim wrote: »

It is NOTa benifit but has been paid for with 50 years of hard work and NI contributions.

It is paid by for by the hard work and NI contributions (and other taxes) of those currently working. Your hard work and NI contributions paid for the State Pensions of those who were retired while you were working.

You can call it by whatever name you like, but it doesn't change the way the money flows in reality.

Alter_ego wrote: »

It could also be described as a Ponzi scheme.

Not really. A Ponzi scheme collapses when it runs out of new money. The State Pension will never run out of new money, because new money can be extracted by force from the taxpayer indefinitely.

Andy_L

KenSim wrote: »

I am very disappointed to see that in todays email that mse refers to the state pension as a benifit.
Part 11 of the 12 winter checks . It is NOTa benifit but has been paid for with 50 years of hard work and NI contributions. The only time it can be called a benifit is by those who have been on social security all of their adult lives and never personally contributed. :mad:

The treasury class it as a benefit.

comeandgo

It's a benefit, it comes from the government using other tax payers money,you don't have to take it if you don't want it.

kwame41

It is technically a benefit I wouldnt get bogged down in the wording:-

1. an advantage or profit gained from something.
   "enjoy the benefits of being a member"
   synonyms:good, sake, interest, welfare, well-being, satisfaction, enjoyment, advantage, comfort, ease, convenience; Morehelp, aid, assistance, avail, use, utility, service
   "they improved the station for the benefit of customers"
   
   advantage, reward, merit, good point, strong point, strength, asset, plus, plus point, bonus, boon, blessing, virtue;
   perk, fringe benefit, additional benefit, added extra;
   usefulness, helpfulness, convenience, advantageousness, value, profit;
   formalperquisite
   "the benefits of massage are endless"
   
   antonyms:detriment, disadvantage, drawback
2. 2.
   a payment made by the state or an insurance scheme to someone entitled to receive it.
   "part-time jobs supplemented by means-tested benefits"
   synonyms:social security payments, social security, state benefit, unemployment benefit, government benefit, benefit payments, public assistance allowance, welfare, insurance money, sick pay, pension; Morecharity, donations, gifts, financial assistance;
   informalthe dole;
   informalthe buroo, the broo
   "there is new hope for those who are dependent on benefit"
3. 3.
   an event such as a concert or game, intended to raise money for a particular player or charity.
   "the social season was highlighted by debutante balls and charity benefits"

:-)

kevtaylor

State Pension IS a benefit

The UK basic state pension is a "contribution based" benefit, and depends on an individual's contribution history. The 50 year comment is also incorrect as the number of years required is actually 30. The hard work comment is irrelevant as lots of people work and pay NI contributions for doing very little work.

it is just one of many "Benefits" for which there is or was a contribution condition :

These include -
Employment and Support Allowance
Incapacity Benefit
Invalidity Benefit
Jobseeker's Allowance
Sickness Benefit
State Earnings-Related Pension Scheme.
UK State Pension.
Widowed Mother’s Allowance
Widowed Parent's Allowance
Widow’s Pension

Paul_Herring

kevtaylor wrote: »

. The 50 year comment is also incorrect as the number of years required is actually 30.

You are mistaken. It's 35.

kwame41

It can be more than 35 depending on your age.


:-)

Paul_Herring

kwame41 wrote: »

It can be more than 35 depending on your age.

Citation please? (Presuming you're not talking about contracted out years.)

kwame41

It's only 35 years for someone starting their NI contributions from Apr 2016. Anyone who has NI from pre-Apr 16's starting amount was calculated at Apr 16 under old & new rules, actual starting amount was higher of the two calculations. Any Contracted-Out pension schemes prior to Apr 16 will result in a lower starting amount, so more to make up post-Apr 16.