Music2 mins ago
State Pension Question
if you pay more in do you get more out per week ?
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No you misundersand, Johnny.
As Auntypoll explains, the State Pension Scheme is not a pension scheme in the traditional sense. A normal scheme invests its members contributions and they are paid out when the member retires.
National Insurance is essentially an extension to general taxation. The receipts go into a general fund from which "pensions" are paid.
The government makes this very tenuous link beween money contributed to the scheme and that paid out in the hope that people will believe that it is a traditional pension scheme. But traditional pension schemes do not pay out the same amoun to those who have made substantial contributions aas it does to those who have mde no contributions at all.
"I don't understand why there are a reported several hundred thousand people entitled to PC who do not claim it."
It my have something to do with the fact that the application form is some 24 pages long and contains 240 questions:
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"If you complete the minimum number of years required at those earnings, even though you have never paid a penny in NI, you will receive the full State Pension."
And...
"It's actully worse than that because some people can earn no money at all, but still be credited with qualifying years..."
I know I'm being pedantic, but because of the outrageousness of the above, it should only be referred to as a 'pension' for those that have paid-in, for all others it should be referered to as 'benefits'.