The overwhelming majority of over-55s are fearful of cuts to the state Pension and more than half worry it could be abolished, new research reveals. Nearly two thirds also believe that tax relief on Pension contributions will be reduced at some time in the future, according to new research by Prudential.
After a series of sweeping reforms – such as the launch of Pension freedoms and the flat-rate state Pension – more than three-quarters of those surveyed wanted an end to any further changes to Pension rules, the Insurance Company found.
Four out of ten over-55s said the continual changes to Pensions over recent years has made them switch off from the topic. And two out of three admitted they were confused by the Pension freedom reforms, which were aimed at giving people greater control over how they spend, save and invest their retirement savings.
Scepticism about the future of the state Pension runs deep despite current Prime Minister Theresa May’s promise to stick with the triple lock guarantee until the next election – meaning annual payouts are currently increased by whichever is the highest of price inflation, average earnings growth or 2.5 per cent. This policy has led to steady 2.5 per cent increases in recent years, yet 81 per cent of over-55s are worried these might go into reverse and 57 per cent are concerned the state Pension will be axed, according to the Prudential research.
The Prudential research also found that over-55s would value support from their employers in tackling retirement planning. About 21 per cent said access to Independent Financial Advice at work would help them save more, while 20 per cent would back having retirement planning seminars at work.