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03 Dec 2014

MPs Predict The Extinction Of The State Pension In 30 Years

According to the latest research, more than one in six MPs believe that the state pension will be non-existent in 30 years´ time, The Telegraph reports.

The NOW: Pensions online survey questioned 100 MPs from varying parties about their thoughts on the state pension, and whether it would still be available to UK workers in 2044. Perhaps surprisingly, fifteen respondents held the view that they would be ‘phased out´ or ‘reduced considerably´ by that time.

And of those who felt that the state pension would still be available in three decades´ time, more than half predicted that the pension age would rise to 70; even though it is currently scheduled to reach 68 in 2046.This view was held by 65% of Tory MPs and 52% of Labour MPs.

With a rapidly ageing population, government pay-outs for pensions are set to increase in the coming years, with figures showing that these costs will quadruple to £420 billion over the next six decades. Current retirees with full national insurance contributions receive £113.10 a week, yet as of April 2016 new retirees will receive approximately £155 a week.

Morten Nilsson, chief executive of NOW: Pensions stated that: “In the corridors of power there is a worrying degree of skepticism that the state pension can be maintained over the long term.

“With the future of state provision so uncertain, it´s never been more important for young savers to take control of their own pension saving and put aside as much as they can to help protect themselves against an uncertain future.”

Copyright © M2 Bespoke 2014

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