State pension clarified: Not an automatic entitlement, but subject to potential means testing
Recent findings reveal that the state pension is legally defined as a benefit, not an entitlement, leading to concerns about potential means testing. Despite public perception, the Department for Work and Pensions has emphasized the need to align the state pension within the social security framework.
In March, it was revealed that the state pension is not an entitlement but a state benefit. Despite years of National Insurance contributions, the Department for Work and Pensions legally defines the state pension as a benefit to align it with the social security framework. This has significant implications as the UK faces financial challenges, leading to calls for means testing the state pension to ensure its affordability. Many other benefits are already means tested, including Universal Credit, Pension Credit, and Housing Benefit. A recent study by retirement specialist Just Group found that 94% of state pensioners believe the pension is an entitlement, highlighting a widespread misconception.
According to the source: Daily Express.
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