They will be entitled to a basic state pension of £97.65 a week for a single person.
Now imagine that the same person, instead of paying National Insurance contributions of £112 per month had invested this in the stock market (assuming the long-term average return of 10% and inflation of 5%) they would build up a fund of £273,000 which (assuming a yield of 4%) would pay out £10,920 a year or £210 a week.
Now let me ask you a question, which would you rather have for your retirement, £97 from the states Ponzi scheme or £210 from your own efforts?
Please note that I have not included Employers NI contributions which for someone on £18,000 is about £130 a month, if this was also included in your own savings (and why shouldn’t it be, your employer already pays it out) would produce a fund of £591,000 which would pay out £23,600 a year or £454 a week.
But wait, it’s better than that. Not only do you get £450 a week you also get to give £591 grand to your kids when you die, try doing that with the state pension.
But wait, I still haven't finished. Because this £454 a week is dividend income you don't even have to pay any Income Tax on it. It comes with a notional tax credit which is deemed to satisfy any income tax liability for basic rate taxpayers.
Are you angry yet? It is about time that ordinary people realised just how much the state is fucking them over.