Pension savers fear decline in state support for retirement

Over half (55%) of savers over 25 believe that government support for retirement will decrease by the time they reach retirement age, according to a new report. Less than one in ten savers aged 18 to 49 surveyed by the International Longevity Centre (ILC) and M&G said they would save a portion of a £10,000 windfall for retirement (8% for 18 to 24-year-olds, 9% for 25 to 49-year-olds). In comparison, a third (31%) of those aged 50 to 64 would save a significant portion of a windfall for retirement. However, there was a strong appetite for savings in general. Faced with the hypothetical £10,000 windfall, almost three quarters (73%) of savers aged 18 to 24 surveyed, and half (50%) of those aged 25 to 49, said they would shift a portion into savings. Separately, respondents also felt that wealth was not fairly distributed in the UK. Among younger generations, more than 1 in 2 people under 50 felt that older generations receive a disproportionate share of wealth (58% of those aged 18 to 24 and 53% of those aged 25 to 49). Separate research from My Pension Expert found that over half (515) of Britons surveyed said that a political party’s commitment to maintaining the Triple Lock pension safeguard would significantly influence their voting intentions at the next general election. Just 23% felt that the Triple Lock was a burden on state finances. Meanwhile, 57% felt that if the Triple Lock on pensions was scrapped it would be damaging to their financial plans for retirement. Lily Megson, policy director at My Pension Expert, said: “By and large, over-40s are in support of the government’s Triple Lock policy and the protection it affords their future finances. Indeed, over half indicate that it will sway their decision-making when the time comes to cast their ballot next month.” “Both the Conservative and the Labour parties’ election manifestos have committed to upholding the Triple Lock, highly reflective of an electorate that’s laser-focused on pension stability. But what comes next will be even more critical; our next government must follow through with their policy promises to voters to help Britons achieve the retirement they so sorely deserve.” YouGov surveyed 2,054 adults on behalf of the ILC and M&G between 15 and 16 May. Opinium surveyed 1,295 adults on behalf of My Pension Expert between 8 and 13 May.

Pension savers fear decline in state support for retirement

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