State pension system will be harsher in 30 years, say majority of experts

The state pension system will be less generous in 30 years, most financial analysts believe
The state pension system will be less generous in 30 years, most financial analysts believe
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The state pension will change to a less generous system in the coming years, analysts believe.

A survey of more than 200 financial advisers by Aegon found that just four per cent expect the current system to remain in place 30 years from now.

Of the 96 per cent anticipating change, almost half said people will have to work later in life before they can claim, while four in ten believe the Government will revert to means testing pensions so wealthier retirees get a smaller payout.

A similar number expect a move away from the current triple-lock guarantee, which states pensions must increase annually by the higher of inflation, average earnings or a minimum of 2.5 per cent, and become less generous.

Duncan Jarrett of Aegon UK said any change in the state pension could leave the public unsure about their own retirement plans. “The state pension is a financial lifeline for millions of pensioners in the UK, so it’s concerning to see such a resounding number of financial advisers foresee more uncertainty on the horizon,” he said.

“People need confidence in what to expect to receive from the state, so we can’t afford cliff-edge moves to means testing, or sudden increases to the state pension age. We need to get better...at highlighting to individuals how much they are due to receive.”