The vast majority of State Pension Age adults in the UK view the State Pension as an entitlement, with 94% agreeing with this statement and only 4% seeing it as a benefit, according to new research from retirement specialist Just Group. The Government describes the State Pension in legislation as a “benefit” to root it within the social security framework.
Despite continued public debate over the future viability of the State Pension, more than half (58%) of people aged over 66 also believe that the State Pension is affordable for the country over the long-term. Less than a fifth (18%) disagree, with around a quarter (24%) unsure.
The research also uncovers the importance of the State Pension to the majority of retirees’ retirement income. Around one in seven (13%) of over 66s said that the State Pension accounted for over 90% of their monthly household income with 44% saying that it represented more than half of their household income.
When it comes to questions of fairness around the Triple Lock mechanism, two-thirds (64%) of over 66s said that the Triple Lock was fair to older generations but only 16% said it was fair to younger generations with a similar proportion (18%) saying it wasn’t fair to any generation.
Stephen Lowe, group communications director at retirement specialist Just Group, said: “As a result of rising longevity and dropping birth-rates, it is estimated that a quarter of the UK’s population will be aged 65 or older by 2050. This means that the burden of funding the State Pension will fall on a shrinking proportion of working people.
“The State Pension Age review is due in the next 18 months, it appears that if the Government wants to avoid increasing taxes or means-testing the State Pension then it may have to look at options either to increase the age at which people receive the State Pension or to moderate the amount paid.
“Neither of these are political vote winners – and as we have seen with the winter fuel and disability payments, once a benefit is introduced it becomes extremely difficult to reduce or withdraw that support. If the government does bring in changes to the State Pension – either to the amount or the age at which it is paid – then it makes sense for people who are not yet receiving it to build up some resilience against those changes.”
