State Pension: Expert outlines criteria to qualify
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Concerns have been growing about the safeguarding of state pension, a payment currently used by millions across the UK to stay afloat. Express.co.uk readers voiced their outrage as some say the payment is already not enough to live on, while others expect its expiration date is forthcoming.
Research by Phoenix Insights revealed that 34 percent of people surveyed did not believe state pension would still be around by the time they retired.
This rose to 53 percent when questioning people aged 25 to 49, a scary potential reality for people who may be looking to retire in just over a decade.
The question of whether the state pension is here to stay first arose when the triple lock was temporarily suspended.
The mechanism was meant to protect and uplift the payments each year to ensure that there would be no pensioners left behind.
However, the unprecedented events during the pandemic saw the Government temporarily replace it with a double lock, promising pensioners the highest rise between CPI and 2.5 percent.
This saw pensioners receiving a 3.1 percent increase this month, while energy prices skyrocket, inflation looks to breach eight percent soon and the cost of living crunch impacts pockets on all frontiers.
Express.co.uk reader Greyjaybee voiced their opinion saying “it is cruel” to have pensioners “forced to exist on a pittance” in retirement when they have contributed for their entire working lives.
They continued: “Let’s pay for all of this by punishing pensioners by firstly messing with the mechanism intended to prevent abject poverty, then putting it about that the tiny sum laughingly referred to as a pension may well not even exist before long. This vile Gov needs to sort out its priorities and find its humanity if it wants to remain for much longer.”
Many charities, pensioners and Britons have raised their opinions, noting that the current amount is not enough to live off of and if the rises follow the current trend it could see future pensioners living in poverty.
Reader Wes19 voiced their opinion saying: “Firstly the pension is not a benefit it’s what we pay into all our working lives it’s a pension fund which governments control. Plus how many people die before pension age and paid into the pension and the family never sees that money back!!”
Many young workers at the start of their career are having to face the question of how to fund their retirement decades before they have to face it, a long-term decision with potentially disastrous consequences.
Reader PGD shared that they felt “like a fool” after paying into a private pension.
They said: “I paid into a private pension, only to find I was ‘Opted Out’ from the state pension, so I was paying 13.5 percent of my wage at a time I couldn’t afford it.
“In contrast my brother-in-law put his money into property and now owns four houses which have increased in value exponentially, plus he gets monthly rentals.
“So who was the mug? Me definitely. “Hindsight is so good when you’re old and poor, so many things I would have done differently, but when you’re young a pension and poverty in old age are something else suffered by others not me.”
JK2 added to the conversation saying: “The state pension cannot be abolished as nearly half the population depend on it. However, it will not keep pace with inflation and anyone dependent on it after about 2035 will spend their retirement in poverty.
“There will not be enough to fund decent pensions based on the numbers involved and longer life expectancy.
“It is not possible to maintain a decent standard of living on a pension of somewhere between £140 and £180 per week now and it will be worth less in the future unless the economy starts to grow at three times the expected rates.”
A DWP spokesperson said: “The State Pension continues to provide the foundation for retirement planning and financial security in older age, with the full yearly amount of the basic State Pension now over £2,300 higher than in 2010.
“Alongside this, Automatic Enrolment has succeeded in transforming private pension saving. A record number of Brits are now saving for retirement – more than 10 million workers have been enrolled into a workplace pension since its introduction, with an additional £28 billion saved in 2020 compared to 2012.”
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