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Just found this on line.

Posted by Kerroux - Created: 4 years ago
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4 replies (Showing replies: 1 to 4)

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Posted by Mickrest - 4 years ago

"They call the old age pension an entitlement even though most of us have been paying for it all our working lives, and now, when it's time for us to collect, the government is running out of money"

There's a misconception here. The State Pension system in this country ( but not in all European countries) is "hand to mouth" and has always been so since Bevan introduced it. That is to say that workers contributions today are paying for the state pensions of today's pensioners. As the ratio of workers to retirees decreasess, it means that there's not enough money in the kitty to pay the increasing number of pensioners without amending the rules.

So, simply put, it means that the age at which people receive state pension will continue to rise as the ratio of workers to retirees decreases in future years thanks to improved longevity.

It's interesting that, when state pension was first introduced, pension age was 70. This means that, because of life expectancy at that time, very few people had the luxury of a state pension at all.

There is no automatic entitlement to a state pension - you have to have worked for the requisite number of years before you qualify.

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Posted by orme2 - 4 years ago

I don't understand what is wrong with the word 'entitlement' when describing pensions.  Surely an entitlement is something you are entitled to?  To be entitled to something means you have a right to it.  Don't you think people have a right to a pension?

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Posted by airpo - 4 years ago

Bartyb, you beat me to saying that.

It does also mean that our children are screwed when life expectancy rises, therefore more pensioners and there are fewer people working to pay for their pensions.

Posted by bartyb - 4 years ago

This is based on the flawed premis that you pay for your own pension, The UK state pension has never been investment based, what you and your employers pay pays for todays pensions