Young adults pessimistic about future of state pension
When asked about the new flat-rate, single tier state pension, which came into effect from April 2016, over half – 58%- of 18-30 year olds admitted they had no idea how much it was and only 12% knew the exact amount.
When told the new flat rate state pension would pay £155.65 a week, two-fifths didn’t think it would be enough to retire on, the study by workplace pension provider NOW: Pensions found. Only 17% thought it would be enough to be sure of a comfortable retirement.
Despite this, 34% are not currently paying into a workplace pension. Of those that are paying in, only 8% knew both the percentage they are paying in and the amount in monetary terms.
Previous NOW: Pensions research with 100 cross party MPs revealed nearly one in six (15%) MPs don’t expect there to be a state pension 30 years from now, or if there is one, it will be at a considerably lower level.
Morten Nilsson, chief executive of NOW: Pensions said: “Younger generations are pessimistic about the future prospects for the state pension but despite this many are taking a relaxed approach to their personal pension saving.
“Auto enrolment will bring a much larger proportion of the younger generation into workplace pensions allowing many more to take control of their retirement saving helping to protect themselves against an uncertain future.”