The UK state pension is dividing the population. The majority of over-55’s (76%) feel it is not generous enough in contrast to younger age groups where only a third of 18-34’s and a half of 35-54’s agree with this statement. This is according to the latest research from Canada Life which found that 56% of the UK population felt the State Pension wasn’t generous enough, with only 22% saying it’s ‘just right’ and just 4% saying it is ‘too generous’.
Canada Life then took three common suggestions to make the State Pension ‘fairer’ and asked 2,000 Brits to vote on whether they agree with it or not. These options include; means testing the income, using life expectancy to calculate income and having the option to claim the State Pension earlier at a reduced rate.
Using life expectancy to calculate the State Pension income was by far the least popular option with 61% voting against the idea. The most popular option amongst the UK public was to allow people to claim the State Pension earlier. Almost half (46%) of respondents were in favour of this even if it meant accepting a reduced rate. Mean testing the State Pension was also unpopular with only 27% voting in favour of the idea.
Andrew Tully, technical director at Canada Life comments: “The State Pension is clearly a hot topic which can elicit a range of strongly held views and opinions. Understandably people will feel more protective and dependent on this retirement income as they get closer to being able to claim it, however the lack of confidence in the generosity of the State Pension amongst the over-55’s is striking.
“Opinion, like the generations, appears to be divided on how to make the State Pension fairer. While allowing early access to the State Pension appears to have the greatest levels of support, it seems that the British public are certainly much clearer on what they do not support than what they’re backing!”
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