"Over the past 10 years we have seen the introduction of the new state pension, increases to state pension age with more to come soon, and a constant debate around the future of the triple lock."
- Andrew Tully, technical services director at Nucleus
71% of UK adults believe the state pension will not exist or will be less generous when they retire, according to new research from Nucleus Financial Platforms Group.
In a recent survey of 2,100 adults, almost a quarter (24%) said they think the state pension will not exist in its current form and a further 24% think it will be a lot less generous than it is today by the time they reach state pension age.
Meanwhile, 15% think the state pension will be a little less generous than the current level and 8% believe it will not exist at all.
Conversely, 6% said they think the state pension will be more generous than it is today. A further 5% are already receiving their state pension and 18% were unsure as to what its future might look like.
Overall, women are more doubtful about whether the state pension will exist in years to come. Just over a quarter (26%) think it will not exist in its current form, while 9% believe it will be a thing of the past entirely. This compares with 21% and 7% respectively for men.
Fewer women (4%) also think the state pension will be more generous than today, compared to 9% of men.
In addition, those aged between 35 and 54 are most sceptical that the state pension will exist as it does now.
Andrew Tully, technical services director at Nucleus, said: “These findings re-affirm the importance of having a plan for retirement. State pensions are the bedrock of people’s retirement income, but they are complex and the position is constantly changing. Over the past 10 years we have seen the introduction of the new state pension, increases to state pension age with more to come soon, and a constant debate around the future of the triple lock. It’s therefore no surprise that many have little confidence the state pension will be around in its current format, or exist at all, by the time they reach state pension age. Being unable to rely on the state pension makes planning even more vital.
“However, the constant change in pension legislation doesn’t support retirement planning. That’s why we’re a driving voice in the industry in the call for an independent, long-term savings commission. On such a crucial topic as retirement, we need cross-party consensus on the development of proposals for pension and savings policy, including how much the state pension should be and when it should be paid over the longer term. It would bring much-needed clarity and allow more people to plan for their retirement with confidence.”
