Fears state pension could be scrapped entirely over triple lock pressures | Personal Finance | Finance

Many Britons are worried they will have no state pension when they retire and almost one in five fear the policy will be scrapped.

State pension costs are set to rise significantly next year with pensioners on course for an 8.5 per cent rise – following a 10.1 per cent pay rise earlier this year.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Not surprisingly, all this change means there is a perception, particularly among young people, that the state pension is under threat.

“Given its importance as the basis on which we build the rest of our pension planning, we need to see real long-term thought in this area with a comprehensive review to ensure it remains sustainable in the long term and allows people to retirement planning with. trust.”

She said the Government may be forced to reverse the triple green policy again this year to reduce the pay rise, after ministers went for the inflation element two years ago after average earnings rose coming to grips with the OCIVD-19 pandemic.

The analyst said: “We may see this happen again, given the contribution that one-off bonuses to the NHS and the civil service have made to high pay data. If this is the case, it provides further evidence for the situation to change or to destroy. the triple lock.”

Another option for the Government to reduce the state pension burden is to raise the state pension age. This is already set to go up from 66 to 67 and then to 68 in the coming year.

A report was published this year looking at the possibility of bringing forward the timetable for the transition from 67 to 68.

Ms Morrissey said: “Again, we’ve seen this before and there was a recent review of speeding up the transition to 68. This was ultimately chosen by the government, but will be revisited in the future.

“The challenge is that if we raise the age too far, not only will we see people forced to work longer than they can, but not many people will be around long enough to claim it.”

Opinium surveyed 2,000 Britons on behalf of Hargreaves Lansdown to find out their views on the future of the state pension.

Almost one in five respondents said they do not think there will be a state pension when they retire, while more than half said they think it will still be there.

Young people are less confident that they will receive a state pension with only 38 per cent of 18 to 34 year olds confident they will receive the payments.

The vast majority of over 55s believed they would receive a state pension while only 42 per cent of those aged 35 to 54 thought they would receive their own.

For the latest personal finance news, follow us on Twitter at @ExpressMoney_.

Denial of responsibility! vismuseum.org.in is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at loginhelponline@gmail.com The content will be deleted within 24 hours.

Read original article here

Leave a Comment