Viability of Government pant ion in 15/20 year?

chingchongcha

I want to top up my state pension but honestly I am concerned that in 15/20 years there will be no state pension. They are spending and have spent so much money to date and I just don't foresee the government having any money left to give us our pensions in the end. You hear of companies not being able to give their employees their pensions. People who have paid in for many years into their company pension and then that company gone's out of business or just miss managed the pension pot. The government is also a 'company' if they spend too much they will also go out of business in a way. Will all our pensions be lost in the future? Sorry a bit morbid but a valid question I think.

Flugelhorn

I think people have wondered if that will happen to pensions for many decades now and it is still there. What happens is that the age will just go up and up so that everyone will just have to work for much longer  

squirrelpie

Think of it as a gamble. What's your alternative plan for the doomsday scenario you foresee? Work out the costs of that. Work out the costs of topping up your state pension. Then consider whether it needs to be an either/or spend or whether you can afford to fund both possibilities. Finally make your best guess as to the possibility of your doomsday scenario occurring or not. And place your bets.

molerat

Do you actually need to top up your pension ?  What exactly does your forecast state ?

xylophone

Viability of Government pant ion

Sounds painful, viable or not!

Linton

State pensions are paid out of current income. Current income from taxes/NI being largely % based will follow inflation. The balance can be maintained by adjusting State Pension Age. Putting millions more people on benefits won’t be practicable and having a large number of old people dying every winter because they could not afford to feed themselves or heat their homes wont’t be politically acceptable.

Therefore whilst the UK state exists I see no reason for SP to be very different in the future to what it is now with only minor changes such as removal of the minimum 2.5% increase and tax changes.