Is the State Pension a benefit?

Pat38493

Thumbs_Up said:

The worlds population is 8 billion people and counting, so it's very easy to keep the so called "ponzi scheme" running. The only problem is, and fill free to add comment is,......

... the world population is expected by statisticians to start falling by the end of this century, and many countries are ahead of the curve in this respect.

retiree7077

Before I reached retirement age, because of missed pension years. I was not entitled to a full state pension. However, I was advised by the pension service to make voluntary NI contributions to four of my missed years, which then increased my forecasted pension. That in itself indicates it is not a benefit, as I bought and paid for it at the going rate. Also paying £14 per week for a NI stamp in 1969 Should be converted to today's equivalent value before saying you are getting out far more than you put in. 

hugheskevi

retiree7077 said:

Before I reached retirement age, because of missed pension years. I was not entitled to a full state pension. However, I was advised by the pension service to make voluntary NI contributions to four of my missed years, which then increased my forecasted pension. That in itself indicates it is not a benefit, as I bought and paid for it at the going rate. Also paying £14 per week for a NI stamp in 1969 Should be converted to today's equivalent value before saying you are getting out far more than you put in. 

That 100% indicated it is contributory benefit...

For example, you can have universal benefits, contributory benefits, means-tested benefits, conditional benefits (eg disability, carers, etc)...

Linton

To say whether State Pension is a "benefit" you first have to define what you mean by a "benefit".  Until then saying SP is or isnt a benefit is a somewhat pointless discussion.   SP is what it is.  It is an invalid argument to say that SP should be different because it is or isnt a "benefit".

pinnks

SP is part of the benefits system and is defined in law as a benefit - just look at S1(1)PA14.  I don't care what it is called or why others have such issues with calling it what it is as long as I get it when the time comes and it lands in my bank account on, or before, the due date.

Silvertabby

Private and occupational pensions are also known as 'benefits', as in 'annual benefit statements'.  

flaneurs_lobster

Are there seriously people on this board who are concerned that they might be considered to be "on benefits" if they are in receipt of the State Pension?

And if there are such people, do they think changing the name will make their prejudice go away? 

Get a grip.

Aretnap

retiree7077 said:

Before I reached retirement age, because of missed pension years. I was not entitled to a full state pension. However, I was advised by the pension service to make voluntary NI contributions to four of my missed years, which then increased my forecasted pension. That in itself indicates it is not a benefit, as I bought and paid for it at the going rate.   

Yes, your entitlement to the State Pension is linked to your National Insurance contribution record. So is your entitlement to Jobseekers Allowance and Employment and Support Allowance - and in the past so were Unemployment Benefit, Incapacity Benefit and Invalidity Benefit.

Presumably you object to calling all those things benefits as well?

sgx2000

RG2015 said:

There was an article in the i over the weekend saying the following.

The state pension is a benefit – here’s why it’s important we say so

The notion that people collecting their state pension are simply taking back what they previously paid in is wrong

I did catch my eye and it does appear controversial but does it matter?

I was though wondering what others on here thought.

I did notice that the journalist looked about 12 years old from his photograph!

https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/state-pension-benefit-2788014

If you pay into something all your life....

You have paid....

It is an entitlement... not a benefit......

Just a shame that government dont see it that way.

pinnks

You are not paying "into" anything.  You are making mandatory payments of National Insurance in accordance with the law - no different in that context than Income Tax.  You do not have a personal pension pot or anything but so far as you have paid enough NI, been treated as paying enough NI, or been credited with a qualifying NI year for whatever reason, you build entitlement to a contributory benefit when you achieve a certain age.

The government doesn't "see it in that way" because the legislation the government of the day introduced or changed defines it as what it is.