6th July 2016
More than one in five (22%) of 18 – 30 year olds don’t believe there will be a state pension when they retire according to research from workplace pension provider NOW: Pensions.
When asked about the new flat-rate, single tier state pension, over half (58%) admitted they had absolutely no idea how much it was and only 12% knew the exact amount.
When told that the new flat rate state pension would pay £155.65 a week, two fifths (41%) don’t think this will be enough to retire on. Only 17% thought this would be enough to be sure of a comfortable retirement. Despite this, 34% say they aren’t currently paying into a workplace pension. Of those that are paying in, only 8% know both the percentage they are paying in and the amount in monetary terms.
When asked about the best ways to save for retirement, a quarter (26%) of 18-30 year olds say they “don’t know”, with 10% thinking that putting money in a bank account is the best way. The Lifetime ISA, due to launch next year, was one of the least popular options with only 5% thinking it’s the best way to save for retirement.
Research previously conducted by NOW: Pensions 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, CEO 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.”