>>Every benefit should be properly means-tested in these days of austerity.

Agreed

Sorry - I am OAP and receive £120 / week or thereabouts BUT it is not a benefit - it is a Entitlement / Pension.

I paid NI, and to all intents & purposes drew nothing other than say "10 / 12 weeks sick pay", over 40+ years

It is taxed @ 20% in my case so receive a net Entitlement /State Pension of £96 / week.

FB & dadbif,

While you might have been led to believe your NI's were being put aside to meet your pension the reality is that they were paying those of youd parents an grandparents.

>> the kiss of death for final salary pensions (except for the public sector and MP's, of >>course!)

Civil Service, MPs, Police, NHS, Fire Brigade, Teachers.....are all Ponzi Schemes.... there is no POT OF MONEY - pay this week's Pensions from last week's contributions.

Many Government Schemes fall foul of this - Fire Brigade in Scotland had to be bailed out as they pay out more per year than they get in.

Edited by Falkirk Bairn on 04/04/2016 at 13:21

So where does the money come from to bail out civil service or other govt/council pensions when the pot runs dry i wonder, wouldn't be from the tax paid by those who weren't so fortunate when Brown needed money to prop up Blair's regime surely.

With the notable exception of Local Government (and posibly other associated schemes) few public sector schemes have a fund. The Civil Service scheme has always been paid for on basis that retired members pensions are an ongoing liability for the tax payer. There is some jiggery pokery over who's budget the money comes from - early retirees are a liability of their employing department until they reach normal pension age.

The latest budget shifted even more of the ongoing cost back onto department's current budgets. In the NHS for example the effect is to claw back some of the much trumpeted increase/ring fencing.

Edited by Bromptonaut on 04/04/2016 at 16:59

The huge unfairness is that those retiring BEFORE the New State Pension came in, may be receiving much less that the £155/week.

SWMBO who paid full contributions but "retired" 7 years ago still only gets £120/week, not the £155 that some retiring recently gets.

My wife worked for roughly 8 years after graduating - then brought up the 3 kids+ looked after her mother for some 25+ years (died 97 yo)

Pension contribution were 8 years, credit for 20 years - she was entitled to around £30 / week - we bought 7 years (IIRC) some £3,000 at the time which increase it to about £67/ week - she had to live about 2 years to get the lump sum back. 11 years on she is well in pocket for what was a modest investment.

What we did not know, and found out fairly recently, she would have earned a BIGGER pension had her mother claimed £70 / week carers allowance for looking after her.

i.e. By not claiming Carer's Allowance the government saved money - now for not claiming she is penalised - seems unfair.

>>Not too sure what to do if I do go self employed as HMRC guide on self >>employment is a bit sketchy and not really doing this to make loads of >>money but enough to pay the lower voluntary N I contribution.

Self Employed is £2.80 / week + 12%(IIRC) of the earnings - so not cheap if you earn a realistic take home pay.