New research from Hargreaves Lansdown has uncovered the scale of the public’s pessimism regarding the future of the state pension.
Only 28 per cent of under 35s and 35 per cent of those aged 35 to 54 think the state pension will still be around when they reach retirement.
The provider commissioned analysis from consultancy Opinium that surveyed 2,000 people in October.
The state pension is currently £168.60 per week or £8,767.20 a year. The triple lock guarantees it will rise by a minimum of either 2.5 per cent, the rate of inflation or average earnings growth, whichever is higher.
An individual must have 35 years of National Insurance credits to qualify for the full new state pension.
As of 5 December 2018, the age at which both men and women reach state pension age is the same. Prior to this, women were able to receive their state pension earlier.
In its election manifesto the Conservatives promised to increase the state pension age to 68 by 2039 as outlined in the Cridland review.
Labour has called for a review of state pension age and has pledged not to increase past age 66 in its manifesto.
The state pension currently costs the government roughly £97bn a year and forms the bedrock of many people’s retirement.
Hargreaves Lansdown senior analyst Nathan Long says: “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.”