How are UK Pensions Funded?
How Does the UK State Pension Work?
Who would introduce the Wellbeing Pension?
Success
What will Happen to My Pension Credit?
How will this Increase Impact On My Private Pension?
How would the Wellbeing Pension change for couples?
Would I still receive the Wellbeing Pension if I moved abroad?
How was the Figure of £275 Reached?
What If I Qualify for No State Pension?
How are UK Pensions Funded?
Answer
Contrary to popular belief, the UK State Pension is not paid from a large pension investment fund. Instead, it is operated as the UK State Pension “Pay As You Go” (PAYG) scheme.
In simple terms, the National Insurance Contributions made in one month pays the following month’s pensions to retired people and some other benefits. However with the National Insurance Fund in surplus the UK Government chose to cut the tax rather than to pay the better fairer pensions that the citizens of most developed nations enjoy.
