Is The State Pension A Benefit?

[barney15c]

I read a story in the news today about how 'potentially' the state pension 'could' be means tested in the future - the actual story was about the government putting through legislation to grant access to your bank details to combat fraud. One thought that came from the article was using it to means test people for benefits and state pensions. As income tax can be applied on a state pension then surely the state pension is not a benefit, but is being treated as one, what are other peoples take on this?

[Hymie]

As my mate Phil explains, another Brexit benefit.

 

[ToraToraTora]

....I was waiting for your mate Phil to wade in hymie!

[Tilly2]

Thank you all. I am not claiming any benefits but the OP alarmed me into thinking that the Government could have access to my bank accounts. Hopefully, that is not correct.

[Hymie]

It is, listen to my mate Phil.

[ToraToraTora]

Tilly they do have access, not to withdraw but they can look at transactions but the vast majority of us are of no interest to them. I work for a US bank and we send regular reports to the FED. Since 2008 the central banks have had powers to demand regular data. I have no doubt the UK does the same. It's for monely laundering and also to anticipate and guard against a collapse like the one in 2008.

[New Judge]

"As my mate Phil explains, another Brexit benefit."

Strangely, Phil suggests that "The Tories" will be able to monitor bank accounts. Will a Labour government not be able to do so as well? Or do all laws become null and void when a new government comes to office?

Anyone believing their bank accounts are protected by privacy laws is deluded. HMRC knows exacly what goes into them and when, and it has done for years.

[THECORBYLOON]

TORATORATORA, "If someone has paid the requisite NI for the requisite time then it's a pension, paid for by the person and their employer."

 

The rate of State Pension is based upon a person's number of Qualifying Years (QYs) not the National Insurance record.

 

Whether a tax year is a QY or no is dependent upon earnings and NI credits or voluntary NI contributions where appropriate.

[jourdain2]

Re. OP  The state pension is NOT a benefit.  We have paid for it, well I and OH have and I'm pretty sure that we're fairly normal contributors.  

For a few years now the word 'benefit' has been slid into statements about pensions.  Something needs fighting for here.

[ToraToraTora]

Jourdain is correct, a Pension is paid for a benefit is free money. Big difference.

[barry1010]

The DWP seems to know when a claimant has travelled abroad, too.

Our friend is disabled in receipt of non-means tested disability benefits.  Within 4 weeks of returning from a foreign trip she is summoned for re-assessment 

[THECORBYLOON]

BARRY, "The DWP seems to know when a claimant has travelled abroad, too."

 

How do they or you think the DWP would know that information as a matter of course?

 

[THECORBYLOON]

JOURDAIN, "For a few years now the word 'benefit' has been slid into statements about pensions."

In Section 17 of the 1965 National Insurance Act, retirement pension is included in the, "description of benefits" list.

It's been a benefit for a fair few decades.

[ladybirder]

It is definitely classed as a Benefit.  I argued it wasn't with an official at the Department of Works & Pensions and was proved wrong.

[douglas9401]

But it can't be, Ladybirder, it's not 'free money'.

Ask my mate Tora.

[Hymie]

In reality the UK State pension is a giant Ponzi scheme – N.I. contributions are not ring-fenced to pay your pension, they are part of the government’s ongoing spending – the next (working) generations have to pay for your State pension, as you paid for the pensioners before you.

 

Although a scare story, I doubt very much that the earned Basic State pension will be means tested.  For one, the value of the UK State pension is very low compared to other developed countries; and to means test it when contributions have been paid to qualify for it, would be manifestly unfair regardless of how rich the pensioner was.

[jourdain2]

Well, that's taught me something.  Thanks both.  I've still paid for it and don't want someone telling me I should be grateful!

[ToraToraTora]

JOURDAIN, "For a few years now the word 'benefit' has been slid into statements about pensions." - Yes they may call it a benefit, that is an incorrect label, it is not a benefit, employees and employers pay into it for N years. That is NOT a benefit a benefit is free money given to those that have not earned it. Only a complete idiot could confuse the two.

[barry1010]

Corby, I can only assume it's from passport control.  

[barry1010]

Jourdain, you've contributed to it but have you paid for it?

 

[jourdain2]

So far as I can see, yes I have, Barry.  I don't get a full pension because of years off rearing children (and being born in 1949); so the chunk I get I reckon I have paid for.  Be nice if someone upped it to be in line with modern pensions; you know  - the ones where almost everyone younger than I gets an equivalent sum.... I can only dream.

Thanks for BA, Barney.