Later Life

Only a third of under 55s expect State Pension to exist when they retire

Less than a third of people under 55 expect they’ll get a pay-out from the Government.

Rozi Jones
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29th November 2019
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"It’s telling that women are less trusting than men, given they’ve seen most change to their State Pension in recent years."

Only 28% of under 35s and 35% of those aged 35 to 54 think the State Pension will still be around when they reach retirement, according to research from Hargreaves Lansdown.

The survey also found that it’s not just those far from retirement who are pessimistic – 23% of over 55s aren’t sure they will receive a State Pension by the time they hit retirement.

Additionally, women are more doubtful that the State Pension will be sticking around, with just 36% expecting a State Pension compared to 43% of men.

Nathan Long, senior analyst at Hargreaves Lansdown, commented: "Trust issues are running rampant within pensions, even the State Pension - the bedrock of everyone’s retirement - is being eyed with suspicion. Less than a third of people under 55 expect they’ll get a pay-out from the Government. It’s telling that women are less trusting than men, given they’ve seen most change to their State Pension in recent years.

"The New State Pension pays £168.60 per week, which would cost more than £300,000 to buy as an annuity. So for those who really don’t think they’ll be getting anything from the Government, they’re anticipating quite an additional burden.

"The chances of getting nothing at all from the State are slim, but increasingly building up private pension savings provides flexibility over when you finish work and prevents your retirement plans being side swiped by a future Government intent on making ends meet."

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