Will the state pension exist in 30 years?

in Auto-enrolment
14 replies 15.4K views
Hi All

I'm 30 and am in full time work paying modestly into a auto enrollment pension. Savings and circumstances aside does anyone think that the state pension will even exist by the time I reach retirement age?

I read stories about it being a timebomb waiting to go off but my hunch is that just paying into a pension pot by itself wont be enough for a modest income in retirement?

Thanks
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Replies

  • JoeCrystalJoeCrystal Forumite
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    Hi Daveahare99,

    The state pension will still exist in our lifetimes so no need to worry about that.

    As for yourself, how else would you be able to save up for your retirement? It depend on how much income you want and when you want to retire.

    May I suggest that you repost the topic in the main Pensions, Annuities & Retirement Planning forum to get more views? Hardly anyone come on this sub forum after all.
  • greenglidegreenglide Forumite
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    Personally I think that the state pension will still exist in some format in 30 years time. Remember that plenty of people who are just reaching 65 now will expect to still to be alive in 30 years. Do you think that they will have the entitlement withdrawn or that they will keep receiving it but there would be no new claims?

    But 30 years is a long time and we really cannot guess what changes will have occurred in the intervening years.
  • A_TA_T Forumite
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    Short of a zombie apocalypse the state pension is here to stay
  • I'm 35 & busy squirreling away money into my pension & a stocks & shares ISA for retirement. I expect that there will be a State pension for me but I'm also expecting that they'll have increased the age I can take it to 70 or more. & I don't really want to be working til then. So I'm planning to have a decent private pension instead that I can use to retire earlier than that & then have the state pension kick in at 70+.
    I also have a small DB pension, which I joined at aged 24 & paid into for 10 years, til it was closed. Now I'm concentrating on building my DC pension (maxing the employer contributions).
    My mantra is save, save, save.
    In time, if I haven't needed the S&S ISA money then I'll begin paying it into a private pension to get the tax relief, if it still exists....
  • Jon_B_2Jon_B_2 Forumite
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    Bearing in mind you and I (I’m 29) are paying NI contributions which count toward the state pension, I find it highly unlikely the state pension will be withdrawn.

    Yes, you probably won’t be entitled to it til you are 70, but put as much away in your workplace pension to ensure you can retire at 65.
  • edited 9 November 2017 at 5:51PM
    AnotherJoeAnotherJoe Forumite
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    edited 9 November 2017 at 5:51PM
    Hi All

    I'm 30 and am in full time work paying modestly into a auto enrollment pension. Savings and circumstances aside does anyone think that the state pension will even exist by the time I reach retirement age?

    I read stories about it being a timebomb waiting to go off but my hunch is that just paying into a pension pot by itself wont be enough for a modest income in retirement?

    Thanks

    Well, that would depend entirely how much you paid into it ! Once you figure that out you’ll understand that paying more into it than modestly is necessary to get a modest pension.

    I’m currently living off my personal pension only since I have a few years to go for SP. I have what some might call a modest pension and others more than modest, since it’s above the average wage. But I didn't pay in modestly.

    FWIW at your age you should be paying around 15% of your salary in, including employers contribution. That would be what I'd call modest. Is that what you call modest ?

    As for SP I suggest you work on the basis it will be a nice addition to have once you are about 70 but don’t count on it for anything vital, assuming you’d like to retire well before then.
  • The SRP will disappear to be replaced by the Auto-Enrolled schemes payouts - in essence the SRP will have been folded into those schemes.
  • nrsqlnrsql Forumite
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    When I started work xx (many) years ago I said the state pension wasn’t supportable and wouldn’t be there when I retired. I Still think I was right apart from the timescale. I thought baby boomers would kill it, same with defined benefit.

    Now there are too many voters affected and those in power won’t want to kill their own pensions which will be difficult to justify. Expect more tinkering before something major.
  • sleepymanssleepymans Forumite
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    Oh...I think it will exist....but it will be next to worthless in amount
    :A Goddess :A
  • badmemorybadmemory Forumite
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    If anyone actually looked at some of the pathetic auto-enrollement amounts they would realise that most people will not even get the old basic state pension from it as income. Any government knows that if they take it away completely it will cost more in administering benefits & they won't get elected again for a few years. So it will only be done by a government which is suicidal, (pretty much like the one we have at the moment).
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