Just 4% of financial advisers believe the state pension will continue in its present form over the next 30 years, according to research by pension provider Aegon UK.
Its survey of 208 financial advisers found that almost half (49%) of respondents that think there will be changes to the current system believe the government will raise the state pension age further.
The research also found:
- 96% of respondents think the state pension will change from its proposed form.
- Of those who believe there will be changes, 39% think the system will revert back to means testing.
- Two-fifths (41%) expect the state pension to become less generous and move away from the triple lock.
The single-tier state pension reforms will provide a flat rate pension for those reaching the state pension retirement age from April 2016.
Calculations by Aegon UK suggest that the cost of purchasing a state pension at retirement, based on the new single-tier pension of £151.25 a week, is £280,000 for a man and £273,000 for a woman.
Duncan Jarrett (pictured), managing director, retail at Aegon UK, said: “The state pension is a financial lifeline for millions of pensioners in the UK, so it’s concerning to see such a resounding number of financial advisers foresee more uncertainty on the horizon. People need confidence in what to expect to receive from the state, so we can’t afford cliff-edge moves to means testing, or sudden increases to the state pension age.
“We need to get better as an industry at highlighting to individuals how much they are due to receive, so they can then work out how much private pension they need to make up the gap between this and their aspirational income in retirement.”
