Why Gen Z are planning for life without a state pension
Summary
Many people in Generation Z, born between 1997 and 2012, do not believe they will receive a state pension when they retire. This is because the government is raising the age for receiving state pensions and there will be fewer workers paying into the pension system compared to the growing number of retirees.Key Facts
- About half of Generation Z think the state pension will not exist by the time they retire.
- The state pension age is currently rising from 66 to 67 by 2028 and is expected to go up to 68 in about 20 years.
- By 2050, around a quarter of the UK population will be of state pension age.
- There will be more people claiming state pensions but fewer workers paying into the system.
- Nearly half of working-age adults do not have a private pension, so many rely only on the state pension.
- The state pension amount increases each year using a "triple lock" method to keep up with inflation or wages.
- Some experts and think tanks suggest changing or scrapping the triple lock to reduce pension costs.
- Concerns exist that distrust in the state pension may cause people to take risky financial decisions or save less.
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