<WRAP = 760><FONTNAME = arial16.dds><FONTSIZE = 16><COLOR = 255,255,255,255>State Pensions in the UK<BR>Two misconceptions about the UK State Pension, are that everyone is entitled to receive it, and that no tax is paid on it. In fact, you only qualify for the pension depending upon your 'national insurance' contributions (although these are paid on your behalf automatically if you are unemployed and
entitled to 'jobseekers allowance').In cases where you still have no entitlement to the state pension, the government ensures your income reaches
a minimum level through an alternative payment called the 'minimum income guarantee'. The pension payments are also taxed, although because the amount
is normally below an individuals tax-free allowance, it is not liable to tax when it is your only income.<BR>
In 1999, the UK government was heavily criticized by pensioners for increasing the state pension only by 75p a week, matching the increase in the 'retail price index', instead of matching average earnings, which had risen much faster. The small rise was very unpopular, but was mitigated by other benefits given to UK pensioners, such as higher ;winter fuel allowance' payments and free 'television licenses' for the over 75s.<BR>
In 2002, the amounts paid out to UK pensioners were as follows:
State pensions            £64 billion
Private sector pensions        £18 billion
Public sector pensions        £12 billion
Generally, in the UK, the state pension provides the average earner with 37% of their earnings from their previous employment.In France, Sweden, Holland and Spain, that figure is at least 70%.<BR>
Germany was the first country to introduce pensions, in the 1880s. Workers and employers contribute 20% of salary, and the state contributes a further 10%. This combines to produce a pension of up to 70% of earnings.<BR>
Many countries have a problem in that demographics changes will lead to a growth in the number of citizens eligible for pensions as a proportion of the population. Some countries hope to deal with this by raising the retirement age, others are hoping that increased immigration will lessen the problem.

