State pension alert as many ‘fearful’ sum will be axed altogether – ‘huge pressures’ | Personal Finance | Finance
The state pension is currently received by millions of people across the UK. While the amounts individuals get can differ, many are reliant upon the sum to support them during retirement.
However, many have expressed their doubts about this safety net and its longevity.
Research has demonstrated a belief amongst Britons that the state pension will, one day, no longer exist.
Some 34 percent of those asked by Phoenix Insights believe there will not be a state pension by the time they retire.
When questioning adults aged 25 to 49, this rises to more than half at 53 percent.
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“After a period of historic declines, pensioner poverty is on the rise again and the current cost of living and high housing costs are putting huge pressure on people’s ability to put anything aside for the future.”
Ms Foot looked towards the current state pension review, which is analysing when state pension age increases will be implemented.
The review will have significant importance for the retirement plans of millions.
She added: “This review has a critical role to play in advising Government on how to ensure that future generations of retirees are protected from poverty.
“People’s perceptions about the state pension and their lack of confidence when it comes to their own financial future needs to be front of mind.”
The state pension review will consider whether current rules around pensionable age are appropriate.
It is to consider numerous factors including life expectancy, differences across countries and regions, and the impacts for those at risk of disadvantage.
At present, the state pension age is set to rise to 67, and then a gradual rise to 68 between 2044 and 2046.
However, the review will consider whether these changes should be brought forward to 2037 to 2039.
If adopted, it would mean a seven year change in the current timetable.
The Government has explained an ageing population in Britain is one of the primary motivations for reviewing the state pension.
It wishes to ensure the sum “continues to provide financial security” for those in receipt of it.
A DWP spokesperson told Express.co.uk: “The state pension will continue to provide the foundation for retirement planning and financial security in older age. Alongside this, Automatic Enrolment has succeeded in transforming private pension saving in the UK. A record number of Brits are now saving for retirement – more than 10 million workers have been enrolled into a workplace pension since its introduction, with an additional £28billion saved in 2020 compared to 2012.”
