1. Half of adults expect to work up to at least their state pension age (51%)
2. Just 18% of adults say they could live on the state pension alone in retirement
3. Over one in five (22%) over 55s don’t know their state pension age
4. 87% of adults believe the state pension is there to ensure everyone has a minimum level of income in retirement
5. The majority of adults (84%) believe that it an essential role of government to provide the state pension
6. Half of under 50s think that there probably won’t be a state pension by the time they retire
Phoenix Group’s Patrick Thomson, Head of Research and Policy at Phoenix Insights, comments:
An important intergeneration contract
“The state pension matters to all of us, it is an important intergeneration social contract helping to reduce poverty among retirees, paid for from contributions of the working age population. It is the biggest single part of the social security system and has been the foundation for many people’s retirement income for over 75 years. However, Phoenix Insights’ research exploring public attitudes towards the state pension found that understanding of the system is very low, including around what the ‘triple lock’ is and when people can access their state pension. A common misconception among the public was that National Insurance contributions are kept in a personal pot and accessed at state pension age rather than the state pension being paid for out of general taxation.
“As an increasing proportion of the population reaches state pension age in the coming decades, it is important that the system is trusted, sustainable, understandable and supports the financial security of retirees.”
The affordability challenge
“When thinking about the costs of the triple lock and the state pension more broadly, the government needs to consider two important factors: how much people are paid through the state pension and at what age they will receive it. Any changes to either of these factors have a huge impact on individuals planning for their retirement, and for our public finances. We know that simply raising the state pension age doesn’t mean that people will be able to work for longer. We need proper support to help make work better for more people, and to support those unable to work to higher ages.”
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