State pension offers ‘good value for most people’ – but high earners likely to get ‘less’ | Personal Finance | Finance
Many people will diligently work and pay National Insurance contributions, with the hope of securing a full state pension when it comes to retirement. Employees, and self-employed people who make profit over a certain threshold, will need to pay National Insurance if they earn over the threshold.
As the state pension is connected to the National Insurance contributions a person makes throughout their life, many see their contributions as working towards a state pension entitlement.
However, research published this week has shown some may get less value in state pension than others.
The Pensions Policy Institute looked at the contributions of individuals aged 20, 40 and 60 compared to how much they may receive when it comes to retirement.
The research found 40-year-old men who are in the top 10 percent of earners pay about £250,000 in National Insurance contributions throughout their working lives.
READ MORE: France hikes state pension age and UK set to do so next
