Please note: The Auto-enrolment sub-board is now closed. If you have a question around pensions, please post in the Pensions, Annuities and Retirement Planning board.

Will the state pension exist in 30 years?

2»

Comments

  • BLB53
    BLB53 Posts: 1,583 Forumite
    It will continue in some form but the costs are going up. The SPA is going up to 66 in 2020 and again to 67 for those now in their 40s. In 30 yrs time it could easily start at 70 and there could be some form of means testing introduced so it makes a lot of sense for younger people to save more into their workplace or private pension/sipp to provide a bit more flexibility on retirement when they get to 60.
  • Silvertabby
    Silvertabby Posts: 8,971
    First Anniversary Name Dropper Photogenic First Post
    Forumite
    The more recent changes to the State pension system - ie, ending contracting out, increases in pension age, cap of £160 per week (could have been as much as £270 per week under the old scheme of basic pension plus SERPS/SP2) - are helping, but it's still a huge chunk out of the treasury's budget.

    Means testing the State pension (as in Australia) is a possibility - but would have to factor in at least a 30 or 40 year warning period so people just starting out in their working lives would know that they will have to make their own provision for retirement from day 1. To be honest, I really can't see any government, of any flavour, making such a long term commitment.
  • antrobus
    antrobus Posts: 17,386 Forumite
    Will the state pension exist in 30 years?

    Yes it will.

    Remember, the UK has has lowest state pension of any developed country. Some countries have any even bigger 'problem'.

    https://www.theguardian.com/money/2017/dec/05/oecd-uk-has-lowest-state-pension-of-any-developed-country
  • antrobus
    antrobus Posts: 17,386 Forumite
    badmemory wrote: »
    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 as income. ...

    People have looked.

    Someone earning £27,000 would end up with a pot worth around £219,000,which would buy a single-life, inflation-linked annuity worth £7,800 a year.

    https://www.ajbell.co.uk/news/auto-enrolment-pension-increases-can-give-average-earners-extra-%C2%A3160000

    The old basic state pension is £6549 a year.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards