Army Rumour Service

Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Think you might be getting a UK State Pension ?

Maybe but what about NI contributions?

What about them ?

The idea that NI contributions pay for State Pensions died decades ago.

( Yes, I know the State Pension is linked to NI payments )

NI contributions are just another tax. A basic tax rate of 20% is much more palatable than a basic tax rate of 32%.

If you submit an FOI request for a breakdown of where your tax goes, you will find that around 15% of the tax you pay goes to State Pensions.
 
The reality is that in the next few decades we’re going to have a population of pension age people that almost match those of working age.
If one in ten people are retired, fine the other nine can foot their bill.
But not if there’s four in ten of retirement age , things become unsustainable.
The state pension will change, that’s why I’m guessing that’s why there was such a big push to enrol everyone into workplace pensions. This is so employers can take the strain rather than people relying on the state.
I think the baby boomers generation did quite well, many had good work pensions and a state pension.
Sadly the generations that follow won’t have it so good.

You'll find in SA the majority of those who fund the state pension scheme do not qualify to receive it on retirement by the simple premise of being productive contributors to the economy. They have to provide a pension for themselves, as well as funding those who can't be bothered working or live off the hidden/undeclared economy.
 
I think the baby boomers generation did quite well, many had good work pensions and a state pension.
Sadly the generations that follow won’t have it so good.
Is this the fault of the baby boomers? Should they be held accountable?
 
What about them ?

The idea that NI contributions pay for State Pensions died decades ago.

( Yes, I know the State Pension is linked to NI payments )

NI contributions are just another tax. A basic tax rate of 20% is much more palatable than a basic tax rate of 32%.

If you submit an FOI request for a breakdown of where your tax goes, you will find that around 15% of the tax you pay goes to State Pensions.
I'm already in receipt of one pension from the state. And pretty good sum at that.

I've got two more waiting in the wings.

And my state pension, what ever that will eventually be and whenever it comes in.

Think I'm looking at about £35k per year, for sure. state pension? meh.
 
I am looking at the possibility that a pension can be left to a spouse and then to children.
Early days but I understand this is a possibilty with a draw down pension. Could be a way of leaving money within the familly and helping your children. Any info gratefully received.
One of the great things about flexible pensions, aka drawdown is precisely this.

Assuming you don't have a Lifetime Allowance issue - ie your funds are under a million or so - on death before age 75, the whole fund goes to whoever you want it to, free of any tax.

On death AFTER age 75, it cam go to whoever you like but any withdrawals of the 25% Pension Commencement Lump Sum will be taxed as income in the recipients hands.

One reason why annuities really should be seen as a last resort.

Happy to speak privately if you wish.
 
One of the great things about flexible pensions, aka drawdown is precisely this.

Assuming you don't have a Lifetime Allowance issue - ie your funds are under a million or so - on death before age 75, the whole fund goes to whoever you want it to, free of any tax.

On death AFTER age 75, it cam go to whoever you like but any withdrawals of the 25% Pension Commencement Lump Sum will be taxed as income in the recipients hands.

One reason why annuities really should be seen as a last resort.

Happy to speak privately if you wish.

If only I had a lifetime allowance issue, some problems are worth having!!!

Thanks for the info, seems this could help with inheritance tax. Strange to have to consider this as I never thought I would have this problem. Property price rises can lead to a headache.

The baby boom generation have done ok and I think it will be tougher for their children, being able to pass on a pension might just be a very good way of helping and securing their future.

I am surprised this has not received wider publicity although I have probably not looked in the right places.
No doubt this will be seen as a tax avoidance "loophole" at some point in the future when the government is short of cash!!
 
If only I had a lifetime allowance issue, some problems are worth having!!!

Thanks for the info, seems this could help with inheritance tax. Strange to have to consider this as I never thought I would have this problem. Property price rises can lead to a headache.

The baby boom generation have done ok and I think it will be tougher for their children, being able to pass on a pension might just be a very good way of helping and securing their future.

I am surprised this has not received wider publicity although I have probably not looked in the right places.
No doubt this wil be seen as a loophole at some point in the future when the government is short of cash!!
It was only introduced five years ago, and HMG has taken a large chunk of income tax from people accessing chunks of their pension.

I'm getting into Wills and Trusts and there is quite a bit of planning that can be done to ensure your wealth stays in your families hands.
 
I have planned for years not to receive a State Pension, it’s obvious to me that 65 was set as the retirement age when people were only expected to live until they were on average about 64. Now the average age for our modern life is 76, with women at 78. So it stands to reason that the aim of any government is to extend pension age to 75. And why shouldn’t they, it was fair in 1947, so it’s deemed fair now. By the time I’m 75, I’m 54 now, it’s likely to be 80.
I don’t consider myself lucky, more pessimistic and a realist, therefore my plan involves no savings ( I live for today and see the World), relying on my MOD pension (which matures next year) and as long as I stay married to the current Mrs. MH, her NHS pension (67). We will also down size our 4 bedroom house to a bungalow on retirement, giving us appropriately £150,000 in the bank, we will also rely on the outlaws dying eventually, giving us £150k to 200k in inheritance. That’s life unfortunately and I don’t plan on relying on the State, even if I have contributed from the age of 15 without so much as a two week break. I consider anyone who relies on the State to be either stupid or poor.
 
Last edited:
I have planned for years not to receive a State Pension, it’s obvious to me that 65 was set as the retirement age when people were only expected to live until they were on average about 64. Now the average age for our modern life is 76, with women at 78. So it stands to reason that the aim of any government is to extend pension age to 75. And why shouldn’t they, it was fair in 1947, so it’s deemed fair now. By the time I’m 75, I’m 54 now, it’s likely to be 80.
I don’t consider myself lucky, more pessimistic and a realist, therefore my plan involves no savings ( I live for today and see the World), relying on my MOD pension (which matures next year) and as long as I stay married to the current Mrs. MH, her NHS pension (67). We will also down size our 4 bedroom house to a bungalow on retirement, giving us appropriately £150,000 in the bank, we will also rely on the outlaws dying eventually, giving us £150k to 200k in inheritance. That’s life unfortunately and I don’t plan on relying on the State, even if I have contributed from the age of 15 without so much as a two week break. I consider anyone who relies on the State to me either stupid or poor.
Who do you think pays your MoD pe sion?
 
We will also down size our 4 bedroom house to a bungalow on retirement, giving us appropriately £150,000 in the bank, we will also rely on the outlaws dying eventually, giving us £150k to 200k in inheritance.
It's amazing how many folk don't do this simple thing. Sell the empty nest. Downsize to a smaller dwelling.

As for inheritance. You came in with nowt, you'll leave with nowt. Spend, spend, spend. No point being the richest lump of rotting meat in the graveyard*.


*Other methods of disposal of body available.
 
It's amazing how many folk don't do this simple thing. Sell the empty nest. Downsize to a smaller dwelling.

As for inheritance. You came in with nowt, you'll leave with nowt. Spend, spend, spend. No point being the richest lump of rotting meat in the graveyard*.


*Other methods of disposal of body available.
Absolutely correct, the outlaws will leave an ex-council house inside the M25, bought for £12.5k, now worth 800k - £million. Split between 5 siblings. We intend to spend our bit on holidays and high days. Who knows what’s around the corner!
 
Just a suggestion but it's possible you misread or missunderstood what the letter was saying.

Just before getting medically discharged after 35 years I arranged an appointment with the Job Centre to ask about state pension and paying my NI stamp whilst not being able to work. I was told not to worry as I'd qualified for the State pension due to being employed (mainly in the army) and therefore paying my full NI for so long.

Got a bit worried after a while and wrote to the tax man who wrote back and told me I'd indeed qualified for a full state pension but in order to receive the maximum amount possible I'd need to pay the equivalent NI contribution for the number of years, up to State pension age, that I was unable to work.

As the difference is about £30 per week and the amount they want in order for me to get this is in the £,000 I'm not sure it's worth me paying particularly as I doubt I'll live long enough to benefit.

No idea about how a second occupational pension scheme would affect your State pension but I receive 3 army pensions and AFAIK it won't affect it.
Just for example. I get £178 per week state pension plus £117 per week occupation pension. As I am above the tax free allowance my State Pension and Occupational pension are lumped together and I pay 20% tax. Around £40 per month at todays rate. :cool:
 
Just for example. I get £178 per week state pension plus £117 per week occupation pension. As I am above the tax free allowance my State Pension and Occupational pension are lumped together and I pay 20% tax. Around £40 per month at todays rate. :cool:
Don’t know your circumstances of course but if you have a spouse/civil partner who’s income is below the tax free allowance, s/he can give you some of their allowance - I think it is up to something like 10% that can be transferred.


Here’s a link - Marriage Tax Allowance
 
Who do you think pays your MoD pe sion?
I would hope my MOD pension is protected, same as my wife’s NHS pension, if either of those was cut or abolished I’m sure the National outcry would be immense. The same cannot be said for the State pension. I also believe my Army pension and my wife’s NHS pension are more guaranteed than any private pension scheme that may disappear if the company goes under!
 
I would hope my MOD pension is protected, same as my wife’s NHS pension, if either of those was cut or abolished I’m sure the National outcry would be immense. The same cannot be said for the State pension. I also believe my Army pension and my wife’s NHS pension are more guaranteed than any private pension scheme that may disappear if the company goes under!
I doubt anyone would give a sh*t if the MoD one was cut or abolished. In the current climate there would be a little wailing should the NHS one be cut or abolished.
 
I doubt anyone would give a sh*t if the MoD one was cut or abolished. In the current climate there would be a little wailing should the NHS one be cut or abolished.
I think you underestimate the love this nation has for its armed forces, I agree there are those that don’t care much for it, wonder what it actually does. But you ask the people of Liverpool if they valued the Army after the mass testing during this pandemic and I’m certain there would be great fondness and support for our Armed Forces.
 
I think you underestimate the love this nation has for its armed forces, I agree there are those that don’t care much for it, wonder what it actually does. But you ask the people of Liverpool if they valued the Army after the mass testing during this pandemic and I’m certain there would be great fondness and support for our Armed Forces.
If it happens, then I suspect it will be posed as an either/or question: NHS or MOD pensions, which do we cut?

Some (large) proportion of the nation may love the armed forces, but a small clique of 'opinion formers' and 'social media influencers' despise them and everything folks like this august forum stand for.
 

sirbhp

LE
Book Reviewer
How do people who haven't paid the full amount of stamps get on ? do they get a full pension or is it a nil pension but made up by benefits? I know that when i was self employed I had to make sure that my stamps were all paid somehow i missed about £80 pounds worth so i had to pay up pronto .

I ask because I had a couple of friends who were "self employed" who didn't pay tax or NI over the years, one was a taxi driver who after having had a stroke cant work and gets absolutely nothing from the govt. which seems fair enough to me. That being the case will he get a pension or benefits when he retires in 18 years or so .

My deceased dad hardly ever paid tax under his own name, I recall he was called up by the tax office a few times and all he used to say was " I been in Eire for two years looking after my poor old mum" .
Does that excuse still work? this was in the days of NI cards together with Holiday stamps .
 

Latest Threads

Top