Can we rely on the State pension in the future?

penwise

I am looking for opinions on this as I am currently relying on the maximum figures when calculating what my pension will be on retirement.
Thanks

luvchocolate

When are thinking of retiring?

penwise

Around 2023 when 60 ( if can).
My friend's also concerned - she's hoping to retire 2028 (60) but might have to stay longer.
Thanks

GibbsRule_No3

Am I right in thinking you will also have private pensions, if you are thinking of retiring at 60? Otherwise at present the SP does not kick in until 66 and by the time it gets to those dates it will be 67 or later. I started work in 1971 and at that time, as a female, my SP was due to start at 60, not long after I started it went up a couple of years and then, because I was born in 1954, it went up to 66. I am in the lucky position of having two final salary pensions but cannot retire comfortably until the SP starts. Then I should be receiving about the same amount as I am while working. If I cam save two years pay I might be able to retire at 64. I don't think you can live comfortably on the SP.

jem16

penwise wrote: »

Around 2023 when 60 ( if can).
My friend's also concerned - she's hoping to retire 2028 (60) but might have to stay longer.
Thanks

I assume you realise that you will not get your state pension at age 60 but at age 66/67?

I think it will still be around then.

SailorSam

There's always going to be a Govt pension, as much as they try to encourage us to put money away for a rainy day, There are many people who'll never be able to afford to pay into a private pension.
If we're to believe the statistics that are dished out, more people are in work than ever before and should plan for the future thenselves. But many of those workers will be on minimum pay or zero hours contracts and live from week to week, many will never be able to pay into a personal pension. In some form, whatever they call it they'll have to receive some pension when they're older.

princeofpounds

Pension provision is pretty much a core government function. Even before the national pension system was introduced, many pensions were provided for by a web of different government agencies (parishes, armed forces, abbeys etc). Going back in history. Societies tend to look after their elders, to a greater or lesser degree.

There is a valid question over how generous those pensions can be of course. The post-war generation and the baby boomers have awarded themselves pensions that have proved to be unaffordable given increasing longevity.

The increasing retirement age is one mechanism for making pensions affordable. There is probably further to go.

But changes will happen incrementally, so you will have time to adjust, and when you are nearer the time of claiming it is likely your arrangement may be preserved, as is the case with today's pensioners and near-pensioners.

So, it is ok to incorporate state pensions into your estimates, but you should always aim to have a contingency buffer in your pension objectives to help deal with changes to that, and also things like poor investment performance.

penwise

Thanks for the replies.
Yes I do have a personal pension but it is not great and I am relying on the full state pension to make it acceptable.

The reason I am asking this question is that if I thought that there would be none or reduced state pension I would have to rethink my strategy

My friend is in the same boat.

Thanks

JournalGirl

I think there will still be a state pension, but I am very sceptical that I will receive it. Like OP's friend, I will be 60 in 2028, so 'currently' pension scheduled for 2034. But as I have some private pension, I would not be at all surprised to be means tested out of my state pension by then.

bouicca21

Pensions are the biggest cost in the benefits system. Increasing state pension age is one way of controlling it. A more logical way would be to do what countries like Australia do, and means test it.

SailorSam

Have a read through this OP, it's a long thread here on Mse about pensions. See if anyone in it is in a similar position as you.

https://forums.moneysavingexpert.com/discussion/5041722