State pension AIBU

[ImSuchABigIdiot]

I know that this is basically impossible to predict, but I’d be interested to hear your thoughts on this.

I’m in my mid-twenties and have recently started paying into a work pension.

I’m hoping that, by the time I reach pension age (which is currently set at 68), I’ll be able to claim a state pension as well as a work pension.

I know that my National Insurance payments should (in theory) contribute towards a state pension, but I’m not sure whether state pensions will exist then.

AIBU to ask whether you think state pensions will still be available in the years/decades to come?

[mcqueencar]

Im in my 30s, I don’t believe it will
exist or else the age to claim it will be 80 something. I’ll also don’t believe the NHS in its current form will exist when im an OAP.

[cricketmum84]

I think that's where it's headed. Probably not in the next 20 years but I would be surprised if state pension exists in 50 years.

Not sure how they would abolish it completely but I think the extension of retirement ages is the first step!

I would advise everyone to start paying into a pension as early as possible! You are never too young to start saving for the future.

[whiteroseredrose]

We're in our early 50s set to retire in about 15 years. DH is making the assumption that it'll be next to nothing for us by then as we have personal pensions.

[BiteyShark]

I am not relying on it.

I think the age you can claim will increase and it will be means tested.

[mcqueencar]

I think we are heading for a bit of a shit storm if you think about the fact that so many of today’s young will not be on the housing ladder & we no longer have the social housing safety net.

[DaffoDeffo]

I'm in my late 40s and worryingly I think it will be means tested by then which concerns me as I don't have a lot of time to plan for it not being there.

Politically it's a huge hot potato though which I think will slow down any changes

[OddBoots]

Part of me thinks they will get rid of me but part of me wonders how that would work. If it simply doesn't exist people will die, if they means test it they will discourage people from paying in to a private pension.

[Pebbles16]

It was drilled into me in the early '90s that state pension would not exist or would be means tested. It's not worth relying on. And well done for starting early. It makes a big difference

[Firesuit]

I think that short of some major catastrophe (end of the UK as a democratic country with control of its borders and a successful economy) the pension in roughly its current form will still be around 50 years from now.

It's already clear how the cost will be limited, they will just keep raising the retirement age to keep it affordable at the current level of payout.

[Seniorcitizen1]

State pension will always be around like nhs - political suicide for any party seeking to abolish either

[BigPinkBall]

I’ve started a pension for my 1 year old based on the assumption that either there will be no state pension or she’ll have to work until she’s 90 before she gets it!

[Firesuit]

If they did introduce means testing, to prevent people spending their savings to make themselves eligible they would probably have to institute compulsory pension saving as well, with the net effect that the change didn't really make that much difference, just that what would have been tax in the old system becomes individual pension savings in the new.

[VanGoghsLeftEar]

I'm 40. Not relying on the state pension. Have been paying into a company pension for 17 years, and have savings on the side.

[HollowTalk]

I disagree. I think it will exist, because otherwise people will just be receiving benefits anyway. There isn't a government strong enough to tell people there'll be no more state pension.

[DontDribbleOnTheCarpet]

I have a friend who jokes that by the time we are 68, retirement will be a criminal offence. Obviously it won't, but I don't expect there to be a pension waiting for me either. I genuinely worry about becoming a burden on my children in my old age.

[HollowTalk]

(I'm not using 'strong' in a positive way, there.)

[chipsandpeas]

im 40 and not relying on it, i think in years to come it will still be there in some form but maybe it will change and go down means tested route

[LifeBeginsAtGin]

I think auto enrollment means the first stage of phasing it out.

If it simply doesn't exist people will die Thats why people need to take pensions more seriously.

[hairycoo]

I think it will still exist for the people who have paid NI. I imagine they will start phasing it out but it will be over a longer period and a tiered system including age and NI contributions, with the next generation will be paying the same amount of NI.

[Trialsmum]

I don’t think it will or you’ll have to be reeeeally old to retire. Basically we’re paying in but won’t get anything out. Of course if you don’t work, you don’t pay in to a pension so those people will still have to receive free money in some way, either a means tested pension or the continuation of benefits.

[hairycoo]

that should say that next generation will be paying far less NI to reflect the fact they have no state pension.

[Eve]

I thought you don't pay into a state pension - its not like a normal pensions savings account.

Is it not contributions, and those contributions fund current pensioners? You pension will be funded by the then current working population.

One of the reasons of the looming crisis is due to a reducing working population supporting a longer living aging population.

( I could be wrong)

[helacells]

Nope state pensions won't exist, neither will free NHS, there may be some form of universal income, but most people will never retire. My advice is contribute to private pensions, invest in rental properties if you can, create passive income, invest in stocks and always have a side hustle.

[Oldbutstillgotit]

I am fairly certain the qualifying age will rise. Probably best not to depend on it .

[Heratnumber7]

I know that my National Insurance payments should (in theory) contribute towards a state pension, but I’m not sure whether state pensions will exist then

I hate to tell you OP, but your NI contributions pay for the pensions of people claiming them today. Your NI contributions don't create your state pension.