I have not heard this . Not sure if I agree or not.
Again those that gain would be those who have never contributed to a pension in their lives and spent the funds in the Costa Blanca.

Also suppose your occupational pension was less than the state pension?

Whilst I agree the days of the state gold plated pension must be over , has gone in private sector. If people contribute to their own pensions with no subsidy from state or employer they should be entitled to state pension as well. This is under assumption you have worked and contributed to minimum of 30 years contributions.