AIBU to be concerned that my State Pension is referred to as a 'Benefit'?

Did you know brits abroad can claim a UK pension, even if they have never worked here? I discovered this recently and was quite amazed. A friend in Australia doesn't get a state pension there as they are means tested, but gets her uk pension.

What exactly is the relevance of that (totally nonsensical) comment?

Whatever the government have or are doing is because they are Tories. If you voted for them you only have yourself to blame. The Tories don’t like paying money to anyone unless they are already rich.

Er - read TinSoldier’s post. You worked for 43 years and are statistically likely to be drawing your pension for a longer period than that. The NI contributions you would have paid will total far less than the amount of pension you will receive. You have not, I’m afraid, earned it.

SueEH

I had to phone someone official about one of dad’s accounts (I have POA) and had to pass the phone over to dad for the security questions.
When asked what benefits he gets he replied nothing and therefore failed the security check. He get his state pension and Attendance Allowance and doesn’t consider they are benefits .

This sounds strange. My sons have POA for me, so surely asking me the security questions rather defeats the purpose? Isn’t POA supposed to be so that your representative can conduct your affairs?

It has always driven me mad that it is listed as a benefit. I started work 1 day after my 15th birthday and I worked continually until I was 58 (then I had to care for my mother) and I earned my pension! It is not a benefit..I earned it!

Exactly, Georgesgran.

Many people were members of a Defined Benefit scheme which is paid as a workplace pension. Read the first of the links I posted on Monday. There, the DWP explain why the state pension is a benefit. It’s been defined as such since 1946 - as has already been pointed out by others.

Pensions have always been benefits. The two terms are synonymous. It’s been in the dictionary for centuries. Friendly societies, also know as mutual societies, also know as benefit societies were based on contributions that people paid pennies and shillings into. Many people here will remember paying into, or their parent paying into, policies with companies such as United Friendly or Provident or Prudential which grew out of those societies ... which paid benefits.

Anyone familar with the tax system will understand the term benefit in kind aka perquisites or perks - things such a company car, private health insurance, share options, interest free or subsidised loans, travel expenses to and from work, a staff restaurant, gym membership, etc. They are all benefits that come as part of an employment package that someone works for. Some employers have flexible schemes where employers can pick and chose what benefits to have. Someone might trade some of their salary for extra holiday or a company car for more salary.

Some people are just touchy about the state pension being called a benefit because of their negative views about non-contributory benefit claimants. They want to think that they worked and paid for their state pension. The fact is, that many people who receive a state pension did not work and pay for all or even part of it. It may have been inherited from a late spouse or be comprised of credits for when they did not work.

And, as I’ve said before, the state pension is a Ponzi scheme. One generation pays for the state pension of generations before it - which is one of the reasons why there is so much debate about the current cost of paying the state pension which represents around 55-60% of the total social security budget.

Although I disagree with much of what Mel Stride said in his recent statement about WASPI compensation, he did make one valid point; that the average life expectancy of a woman currently receiving a state pension is 87 (ONS figures) - an expectancy that is reducing for younger generations. For a woman who received state pension at 60 (i.e. not the WASPIs) and who lives to 87, she will have spent 40% of her adult life receiving a state pension.

You only have to do the sums to see the benefit i.e. the advantage of paying Class 3 NIC to plug gaps in a contribution record to understand how beneficial it is. Pay £907 to buy one extra year and you will receive an extra £329 a year in pension. You break even in year three and start to profit. Live another ten years and you’ll have received £3,290 in extra pension at current rates. Had you left that £907 in the bank at 5% interest for ten years you would have less that £1500. How is converting that £907 into more than double that as state pension for ten years not a benefit?

the way some younger people tell me I am just too lazy to work & should get a job & stop ruining the country for people like them

No younger person has ever said anything like that to me and I dont think they would like the response if they did!

Its not the fault of todays pensioners that the government of the day set up the state pension as a ponzi system whereby todays taxpayers financed it. Other countries used different models. Seniors in this country have paid their dues into the kitty and should not be ashamed or reluctant to claw back all they can get. Im not!

No.2 - Made by the State to those entitled to it.

I’m another who doesn’t care what it’s called - as long as I get it. Old Age Pension anyone?
I’m posting a pic from the definition of Benefit and it’s probably the correct term, even though it annoys some ….

A friend of mine lives in Central London, in a beautiful enclave of old almshouses. She gets most irate when anyone describes it as 'social housing'.

It's just words.

As long as you are receiving it why worry?

I was asked if I was on any benefits - like the pension. I was horrified to hear it referred to as such - like we haven't paid into it all these years. It is an entitlement - unlike my attendance allowance, which relies on my having pain and mobility issues and I haven't "earned it" as such. Perhaps they're calling it a benefit because the same department pays it that pays actual benefts.

The one thing that really annoys me about being told I am on a benefit(pension) is the way some younger people tell me I am just too lazy to work & should get a job & stop ruining the country for people like them! Do they not realise that one day they will be nearly 80, disabled & sick of being treated like they should go sit in a corner & hurry up & die so out of peoples way? Why do older people get blamed for all the things wrong now?

I wouldn't trust this gov't on anything, there is no doubt some plan to privatise it behind the change in terminology, I suppose they imagine that if it becomes known as a benefit people will not want this and will happily change to a private scheme that will pay huge benefits to shareholders and the minimum to people claiming pension

OurKid1

I've never actually thought of that, but yes, you are absolutely right to be bothered by it. I am now.

Me too. Especially as I'm a WASPI and had to wait 6 years to get my "benefit". The DWP is always reminding people to claim their benefits and once people have got one others are easy to claim. Other than Child Benefit I, and my husband, have never claimed anything off the State

It's not a benefit. My cousin has a letter from her MP stating that it isn't. She was trying to rent s property and some estate agents denied her applications as she was 'on benefits'.
Also, if the government want to refer to it as a benefit, then in shouldn't be included in your yearly earnings and therefore not taxable!

Never thought of that...so does that mean when forms etc say are you on Benefits? I can now put YES???

Oh how I wish is was a "benefit" - the I wouldn't get taxed on it, as I did last year and will be taxed this year, just on my State Pension

Germanshepherdsmum

I really couldn’t care less what the DWP call my SP. There are more important things in life to get upset about.

I totally agree.

maddyone

Already Pension Credit has disappeared with the new state pension.

@maddyone only for the guaranteed (income based) element you can still get it with the NSP amount if you have the severe disability premium or an underlying entitlement to carers allowance as the income threshold increases

I’m just extremely glad to have it.

Well said Bea65 we have paid into that all our working lives

I'm new to receiving a pension, so I haven't really thought about the wording. In some ways, the term "benefit" does actually fit fir me, because a large amount of the money is made up from my child "benefit" years. I do not receive the full amount anyway.

According to a government forecast I read the other day if state pensions is increased by the same % in 2027/2028 state pensioners will have to pay tax as the Tory government are not raising the tax threshold for paying tax.

I will get my state pension end of April had my letter plus code in January and applied for it online which was easy. Also had my forecast I will get my full state pension plus 48p per week from my husband's NI contributions from 1974 until he died in 2004.

Because of disability finally after 35 years of trying was awarded enhanced PIP for living and mobility indefinitely by the tribunal. I was born disabled with a hole in my heart . I only got my diagnosis of my rare hereditary neurological condition in April 2022 but knew in the March my neurologist had a diagnosis so sent for PIP forms . After the phone assessment they gave me zero on everything. Thanks to The Brain Charity they got me a solicitor pro bono who sent in the papers for a tribunal in July 2022. August 2023 when to tribunal they where lovely and a support worker from The Brain Charity went with me. My award was back dated until the dated I asked for the forms.
The solicitor told me to apply for UC and after seeing my caseworker she sent for the health UC forms can't remember the exact title for it and had face to face appointment as I didn't trust phone assessments after my PIP one. Especially as my solicitor asked me to get a copy of the report. I knew the woman hadn't listened to me . That many errors took me 2 days to read and mark them and written the email to my solicitor.

Went to CA and the lovely advisor filled in online pension credit form it showed I could claim some. She rang the DWP pension credit and with her help talked to them and they filled in a form I need to phone them on my birthday . She kindly wrote down what I need to say. So fingers crossed I get it on grounds of having enhanced PIP for living and mobility. I was with her for 3 hours ,a hour was waiting for DWP to put us through to speak to someone.