What does National Insurance contribute toward?

National Insurance contributes toward state benefits, which are payments made by the government to individuals in certain circumstances, such as unemployment, sickness, and retirement. When individuals pay National Insurance contributions, they are essentially funding the welfare system, which provides support and services to citizens in need. This includes benefits like the State Pension, maternity allowance, and jobseeker's allowance, among others.

Corporate taxes, individual retirement accounts, and private insurance policies are not funded by National Insurance contributions. Corporate taxes are paid by businesses based on their profits, while individual retirement accounts are typically private savings plans. Private insurance policies are purchased independently by individuals for additional financial protection and do not involve National Insurance. Therefore, state benefits is the correct context for understanding the role of National Insurance contributions.