Brit OA Pension. Charity hand out?

I’ve Googled different topics on the mandatory Brit. Old Age Pension, (mine, self employed… and lacking a few years payments, currently stands at around 450 euros per 4 weeks)…without much success so far.
Im looking for opinions, analysis, concerning its status as a charity hand out? or … rightful fully paid up basic pension, entitlement…
Am I, as someone pointed out yesterday, being subsidised by the nation’s earners, in a way that cannot be justified and accepting money… called a pension …that should not be an entitlement at all?
If …instead of making contributions for this pension, I had saved the money and invested it in some other interest paying enterprise, is there any possibility that after 40years compound interest, it might have payed me the 400+ I get now? Thank you for thinking about it!!

The problem is that you mention investing Jeanette.
The idea is that this is left to government rather than individuals who might very well be less able or tempted to blow the lot.
It is an extra safety net for workers.

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Of course it’s not a “charity handout” -no more than someone who has never worked getting unemployment benefit or whatever it’s called now. Our NI payments went to support others by way of child benefit, sickness pay, invalidity benefit ect. That’s the way a civilised society works.


I’m not sure I understand your motive for a suggestion that your State Pension is a charity handout.
Is it because you have some strange notion that it will be tax free?
At that level, your pension in France nor in the UK if that is your only source of income will be subject to tax. Indeed, in France under the double taxation agreement, you will benefit more as you will be given a further 10% allowance before tax becomes due.

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Thank you! I have just noticed three replies to my question. Your thoughts are appreciated, and I will think carefully about them before replying…

Hello Jeanette

Why someone should think that you are being subsidised by the nations earners is beyond me.

An old age pension is not a handout, it is your right, you have worked and paid into the ‘system’ and as Sue Young has rightly said those of us who have worked/are working have done this as part of a civilised society.

I don’t think you should have to justify yourself to anyone, let alone someone who is obviously ignorant of how the system works.

Please don’t angst about it, carry on enjoying your life and living it the way you want


Hello @anon78757855

I’ve read and reread your first post… and am left wondering who this person was “as someone pointed out yesterday…” and in what context that person said things that put your mind in such a whirl.

Anyone, employed or self-employed is entitled to their pension on retirement … having paid whatever subscriptions over past years… the amount may well vary, but it is an entitlement… a pension for life.

I hope we have put your mind at rest. Please do let us know if you want to discuss this further…

and… I would like to know more about whoever has obviously upset you. :zipper_mouth_face:

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Perhaps you are being influenced by the national economic debate about pensions and an ageing society?

Yes, you have earned your pension, it is your right so you should feel completely entitled.

However, your pension today is partly drawn from the tax paid by the current workforce, and there is an increasing inbalance as we have proportionally more people drawing pensions than we used to wth low birth rates ad ncreasing ifeexpectancy. It will soon be 25% of the population, so there is increasing pressure on the working age population to support retirees.

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I could not understand why the number of years (paying-in) for full pension, was dropped from 44 for a man and 39 for a woman to 30 for both… :thinking:

Even back then the govt new the population was living longer… and funds would have to spread further… I could certainly have understood them asking for more years paying-in… but to take less, crazy IMO…

How the govt ever balances the “housekeeping”… I have no idea… :thinking::zipper_mouth_face:


I should have been able to get my pension in three and a half years. Now it’s ten and a half! I will have a bed pan in one hand for a patient and my own zimmer in the other


I think the problem is that the UK OAP is referred to a benefit.


Keep carrying the lamp as long as you:re able, Nellie!! My wife and I were both 72 when we “hung up our pinnies” and signed off the Register, and we worked hands-on until the last days. I think we each earned more in the last ten years than in the previous 40+ put together, and that made our French home possible.

But it has become massively more arduous in the past 20 years than it has ever been, and you have my deep sympathies. When I read your brief notes from the front line, I know what they signify in terms of blood, sweat, tears and beyond tears…

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QUOTE: Pension Credit is a benefit for older people. It is based on the amount of money that you have coming in.

I wonder if that wording is what is confusing some people…

Old Age Pension:
You can only claim a UK state pension if you have paid or been credited with UK National Insurance contributions (NIC) – these are the UK’s social security contributions. If you are eligible for the UK state pension , you cannot normally get it until you reach state pension age.

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It beggars belief Nellie that you have to go on working an extra 7 years. Maybe the government expect that you will be so worn out that you won’t be able to profit !

I believe that there is a movement mounted by women who were born in the late 50’s who have had the pension age changed with sometimes drastic results.

I must take some time to search it out as I am among that group ! :thinking:

Edited to say that things have changed regarding widows too, once upon a time there was a widow’s pension, this was to supplement the fact that some women stayed at home to look after children or parents and didn’t have quite enough conbtributions, in fact supported their husband too.

As I understand it from last year that no longer exists… I am open to being corrected of course !


It’s now gone up to 35 years Stella.

So perhaps someone in govt realized that they had made a mistake all those years ago ???

(Personally, it was a shame that when it dropped to 30, the start-date was the beginning of April 'cos OH retired on 22 March… and with only 40 yrs instead of 44 he missed out on a full pension… just one of those things… as there will always be winners and losers… but… :zipper_mouth_face:

Doing the maths I presume that Nellie is younger, a woman who had hoped to retire at 60 but now won’t be eligible for the OAP until she is 67.

It is the problem with an ageing population and the government being “overdrawn” year after year.

Pensions are not paid from a pot effectively created by your NI contributions.

What solutions are there :
Lower pensions payments?
Work longer?
Higher contributions?
Reduce spending elsewhere?

Any of the above will not be popular.

(and all of this was before this Brexit nonsense!)


Of course, you are correct… the “Stamp” is paid against a promise, given by the Govt, to provide a pension (eventually) to the “Stamp” payer… :zipper_mouth_face:

The OAP and Government Pensions are ‘legalised’ Ponzi schemes. The money received is paid straight into the Exchequer, not invested, and all payments out come from present day taxpayers. The situation has become even more difficult since low taxes have become expected.

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