BlogLatest NewsState pension 'extinct in 30 years', warn one in six MPs

State pension 'extinct in 30 years', warn one in six MPs

Survey finds politicians pessimistic on future payments, with half telling savers to expect to wait to 70 if the state pension is still around in 2044.

One in six MPs believes the state pension will be extinct in 30 years time, a poll found.

Currently people who reach retirement age with a full national insurance record receive £113.10 a week.

But cost of the payments is rising as Britain's population ages, with official figures showing the bill will quadruple to £420 billion over the next six decades.

An online survey asked 100 MPs from different parties whether they thought the state pension would still be available to retired people in 2044.

Fifteen said the payment would have been phased out or reduced considerably within three decades.

Morten Nilsson, chief executive of savings firm NOW: Pensions, which commissioned the research, said: "In the corridors of power there is a worrying degree of scepticism 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."

From April 2016, newly retired pensioners will receive around £155 a week. The "flat-rate" payment replaces today's complex system of earnings-related top-ups to the basic amount. Over time, the new state pension will reduce the cost of the supporting the elderly.

However, MPs indicated a further curtailment of old age payouts would be necessary.

In the "representative" survey of 41 Conservative, 52 Labour, six Liberal Democrat and one anonymous MP from another party, more than half said the state pension age would have to rise to 70 by 2044. It is currently scheduled to reach 68 in 2046.

Tory MPs were "more pessimistic" than Labour MPs, NOW: Pensions said, twice the proportion of Labour counterparts believing that the State Pension would be non-existent in 30 years. Of those who believed the state pension would remain, 65 per cent said the state pension age would be 70 by 2044, compared to 52 per cent of Labour MPs

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