State Pension Top Up

[lardhelmet]

Out of curiosity, I clicked on to the government advert. that is appearing on my page today, to see what it was about. It seems that in order to increase my pension by £10 a week, I have to send them £8,900 when I'm 65.

So, if I need an extra £10 per week, why would I have £8,900 in the bank?

[New Judge]

In fact, OG, if the State Pension fund was provided on a "contributions = benefits" basis it would be more than self funding. But that of course would mean that some people would get nothing. The problem is it purports to be a pension scheme (which should pay according to contributions made) but at the same time acts as the "safety net" that you describe for those who have not made their own provisions. It cannot be both.

If it is to be run as a pension scheme then members are entitled to be paid out in direct proportion to their contributions. At present that does not happen. Governments should be honest and say that it is not a pension scheme at all but simply an extension to the rest of the welfare system where those who pay the most in get, proportionately, the least out.

[Old_Geezer]

That is true. Although I do tend to think, "What is in a name ? A rose by any other would smell as sweet.". It's a payment made by society to folk who have reached an age when they should not be expected to have to continue to work, and arguably who have a duty to pass responsibility over to the next generation. "Pension" sounds as good a name as any. But distinctions should be made over what a State Pension is (part of welfare) and a private pension (investment scheme) even if both are designed to do a similar job for the individual in receipt of the income.

[Peter Pedant]

I cant understand any of the propaganda even tho I am in the contributory window ( OK I understood that but nothing else )

[Old_Geezer]

If you understand propaganda then it has failed. It is meant to be swallowed, agreed with, and and complied with.