State Pension Changing 1st August 2025

Silvertabby

kempiejon said:

singhini said:

Marcon said:

singhini said:

Just to be clear - Pensions aren't a benefit   (had to get that in)

Don't think the government agrees with you, unless the legislation has changed in recent years:

'The State Pension is described in legislation as a “benefit” in order to root it within the existing social security framework as a statutory scheme paid out of monies in the National Insurance Fund.'
 https://petition.parliament.uk/archived/petitions/121267

It was a joke

In response to what Booneruk wrote

Careful, don't poke the "Pensions aren't a benefit" crowd  

Hence why i wrote "had to get that in"

Oh I know this one, I've paid in all my life so I've earnt it.

When I was getting ready to pay my NI top ups 4 years ago, I had access to exactly how much NI I had paid, year by year.  Starting with just peanut shells in the very early years (first job take home pay was less than £6 a week).

Over the years, during which I always worked full time but never quite reach the dizzy heights of higher rate tax, my total NI paid in would barely cover my first 6 years of State pension payments.  

Marcon

If there was ever a truly terrifying example of the power of the internet to mislead the gullible (and plenty of others too!), this thread is it.

There has been vast coverage of why the so-called WASPI women aren't going to get compensation: cost. Based on the Parliamentary and Health Service Ombudsman's recommendation for payouts of £1,000 to £2,950 per woman, the cost is around £10.5 billion. If that is 'unaffordable', who the hell is going to foot the bill for more than doubling the 'new' state pension and paying it from age 60?

jenniejo said:

thanks Brie and Booneruk - I felt like it was a scam too.  still feel very dubious but that is why I thought I would come on here to ask if I am not totally losing it LOL!!  I suppose only time will tell - or when Martin Lewis comes on tv to tell us that it is all a fairytale!!  in the meantime I shall live in hope 

In the words of John McEnroe: you cannot be serious. PLEASE don't believe such nonsense.

katejo

I noticed that, in the Q & A section at the end, 1 question asks whether it will stay at 60 or whether retirement age will return to 67. I wonder whether anyone who tries to enquire will get an 'April fool style' reply. 

hugheskevi

When I was getting ready to pay my NI top ups 4 years ago, I had access to exactly how much NI I had paid, year by year.  Starting with just peanut shells in the very early years (first job take home pay was less than £6 a week).

Over the years, during which I always worked full time but never quite reach the dizzy heights of higher rate tax, my total NI paid in would barely cover my first 6 years of State pension payments.  

I've earned enough to be a higher-rate taxpayer almost my entire career, although I avoided it for the first 9 years of earning by taking unpaid leave to travel. As National Insurance is paid on a pay period basis, that was great for the cost of National Insurance, as all the months I worked I didn't pay NI above the upper earnings threshold. 

I've just calculated that I have paid:

• £83,192.35 in cash employee National Insurance contributions. Applying a 5% p/a increase to past contributions prior to 2024/25, the adjusted amount would be £138,512
• 4 years of Voluntary Class 3 NI (this would cost £3,692 at today's rates)
• About £2,700 more employee National Insurance in 2025/26 until I leave work
• 5 more years of National Insurance accrual required, one way or another, for a full new State Pension (£4,615 if paid using Class 3)

Using the adjusted amount of past contributions, that is a total of £149,519. That would fund about 12 and a half years of new State Pension.

Taking into account income tax on State Pension at 20% (although I will probably pay a marginal rate of 40%) that would increase the pay-back time to 15 and a half years.

I expect to receive State Pension for about 20 years. So I would need to either increase the adjustment to past cash contributions or factor in future adjustment in excess of Triple Lock increases to get the amount of National Insurance paid to cover my State Pension. That wouldn't result in implausible figures, but it is interesting that I will only have paid just about enough to cover my own State Pension, and it could be argued that maybe I haven't contributed quite enough.

Shimrod

MACKEM99 said:

Click bait?

Most likely - the website itself was only registered on 24th June so a headline like this would certainly drive some traffic.

finbaar

I read an article the other day about the next edition of the OED removing the word "gullible".

DRS1

NICs and the state pension is basically just a Ponzi scheme.  Amazing it has lasted this long.

artyboy

DRS1 said:

NICs and the state pension is basically just a Ponzi scheme.  Amazing it has lasted this long.

We need a 2 child minimum policy really... Mrs Arty and I have done our bit to keep the pyramid scheme going 

AlwaysLearnin

finbaar said:

I read an article the other day about the next edition of the OED removing the word "gullible".

Link?
   
😉

Cobbler_tone

Those citing NI contributions. If you check how the pension is funded, income tax does some heavy lifting, which is common sense when looking at NI contributions in isolation. I’m assuming most have paid plenty of that.