State pension

[KittenCatt]

Do you think the state pension will exist in 40 years time?

I’m doubtful…

Depends on how much people fight for it

Lots of things are closely split in this country at the moment - those who want greater equality with the associated greater taxation for richer people and those who want a more competitive look out for yourself country

The former tend to believe in society and the same rules and opportunities for all ( so all entitled to a basic pension ) the later would say it's up to you to provide for yourself

Quite simplistic bit it's all there to play for

• help form the type of country you want to live in

In the 80s many said there wouldn’t be a state pension now.

Yes I do.

I'm always curious as to what people expect will happen when they confidently proclaim there will be no state pension in x years (not you op, just generally).

There will be millions of people who continue to reach state pension age with no or minimal private pension in place. What do people think will happen - the Government will just let them all starve to death in a ditch with literally zero income?

I cant see how it cant, it might be means tested or be very much an old age pension from 75 years old but there will be millions of people who dont have enough to live off from private pensions. If you are a low earner with a crap employer you will have paid into a pension but it wont be much and you are likely to have rented or not have anything to downsize from.

Yes for the simple reason that a significant proportion of the population will need it to live on and if it wasn’t there they would claim benefits instead.

According to ONS the top 10% of earners in 2022 were those full time workers earning over £62,645 per year. The 10% includes those who earn millions. The median (mid point) full time salary in 2021 was £31,285, so 50% of the full time working population earn that salary or less. What do you imagine their private/occupational pension provision will look like?

If you add In that young people are not buying houses/can’t afford to buy in the numbers that did in the past, so in 40 years time many will still be renting and requiring assistance to pay their rent when retired.

I can see means testing being introduced but that often costs more to administer than to pay everyone the same.

I feel better about this now. Thank you.

My employer will only pay the minimum into my pension, and wouldn’t increase the payments even if I increased mine. A shame really.

I use a S&S ISA as my additional pension, as my workplace pension won’t be much. I just hope it’ll be enough…

The demise of the state pension has been forecast for the last 40 years at least - thats when I started working in the pensions industry and unscrupulous pensions salesman were using it to sell private pensions.

As well as the reasons others have stated, the state pension in the UK is relatively sustainable.

Its a fair bit lower than what you get from other European countries and the retirement age in general higher. Whilst thats obviously not good from an individuals point of view it does mean that that for the country as a whole its relatively affordable, even with an ageing population. I honestly cant see how the likes of France wont be forced into significant pensions reform (ie pension cuts and increases in retirement ages) in the next 10 to years or so.

It may still be worth paying extra into your pension even if your employer does not increase their contribution as you are saving on tax & NI. As a basic rate taxpayer anything you pay in will be increased by 30%.
It is your pension pot so I would look at increasing its value any way you can.