why do those who have never paid into the system still get as much as those who did?

Question

to be more specific, I mean those that have paid into the nhs, or into a pension arent that much better off (it seems) than those that have never worked or paid into a pension, .... even there rent is paid....if there are any top financial experts out there. could enlighten me and other readers..... or is there no point in paying in at all... well I think you get the idea...cheers...

Answer 1

This is a very good question. It is a problem the government faces and they do not seem to know how to deal with it.

We have a policy (which is generally supported) of ensuring that everyone gets the health care they need and a minimum standard of living in retirement regardless of their individual circumstances.

The big problem at the moment is how to motivate people to save for their retirement. I'm not going to bother to look the actual figures up but the basic state pension for a single person is about £84 a week. The minimum amount deemed necessary to live on is about £110 per week so anyone on the basic pension gets a top up to this figure.

Now if you paid into a pension which entitles you to, say, £25 a week (and this means that you have saved something like £20,000 in the fund) your top up is reduced so you are no better off for saving.

So unless you can save a lot more then why bother?

Perhaps you should ask for ideas on how to change this. I'm sure the chancellor would be interested. All the suggestions from official bodies have high costs attached so go on, solve the problem and make a name for yourself.

Answer 2

You get treatment on the NHS when you are ill - so someone who has perfect health will pay in to he NHS but never use it.

State pension is a massive £84 per week, which is what my grandmother gets. She also gets her rent paid for her. Has she ever paid into the system? Yes but not much. She brought up her children - who have all worked and paid in to the system as have her grandchildren. Her children and grandchildren not only pay into the system but work (or have worked) in education, the NHS, the police.

Monetarily she has not paid much into the system but indirectly she has made a huge contribution to society. Her grandchildren all have pension plans and the majority own their own homes. I personally do not mind contributing to her upkeep via tax and NI

Answer 3

I had an argument with my mum over this one. I said they don't take your money and keep it in a bank account for your old age state pension, they use it to pay everybody that needs it now, including the no hopers who have never paid anythings giros, schools, hospitals etc you just get whats being paid into the system by the workers in the years you claim it. I think it should be means tested. why should someone who has millions in the bank get a state pension just because they've paid into it.

Answer 4

this stuff always looks bad, and you can find alarmists that make you feel like a total chump for working a day in your life.

Those alarmists pay taxes too, and they make money off
the suckers they can fool into getting all upset.

The government is not going to collapse.

If you are worried about it, then do what I do and save lots
of extra money ... it helps in two ways. You keep from spending
money on things you do not need. You save money that
you will need or find a use for later on something important,
and you save yourself from being dependent on the government
just in case.

Remember the government has to eventually react to voter
pressure, so they are not going to let lots and lots of voters
go broke and have no pension.

In the meantime, pay your taxes and help the country.
I am always happy anytime I can pay more taxes, because it
means I am making more money, and helping the country
as well.

People should think about that more.

Answer 5

you know the answer, become a single mum (if your male get the nhs to pay for the sex change) because you are so overweight due to eating all the pies you can then get disability then sign on and get a nice flat all paid for :-) sadly i still like many have to face the drag of the tax system, maybe an insurance system would be better!

Answer 6

Been asking myself the same question for a year now, You can't really blame people for not working, they seem to have more fun, more time, they can shop around for bargains etc whilst the hard working crew carry on and end up worse off!!! Where's the logic in this, I'm now thinking, "Whats the point in working!!2?????? xx

Answer 7

If I thought that those who did not provide for themselves got nothing, I would work and save like hell. The reality is that at the end of it all, the Government pokes its nose into their bank accounts and says "Oh look! You've got plenty of money. You can pay your own way."

They don't get their rent paid or their council tax rebated or their prescription charges waived or free glasses and dental treatment or free residential care These goodies are reserved for people who have pissed their wages up against the wall every Friday night.

The Government don't want you to save for YOUR retirement, they want you to save for somebody else's.

My advice is to enjoy your money while you can and before the Government gets its hands on it.

Answer 8

welcome to the unfair world we live in....I work in the NHS and have a pension with them, I struggle and then have to watch my neighbour get her rent etc paid out of my bloody taxes.....urghhhhh it grates against my nerves. God only knows what I`ll end up with when I retire!!!

I`ll be interested to see you answers to this. good question.

Answer 9

Thats a LOOPHOLE in the sysytem which people from overseas have exploited.

Answer 10

Yes, it's frustrating isn't it!