Strong support for increase in state pension

Britain is failing its pensioners, according to a new report from Club Vita, a “pensions comparison club” created by Hymans Robertson.

The report states that seven out of ten members of the British public – of all ages – think that Britain isn’t doing enough for the elderly in their retirement. And three quarters think there should be a substantial increase in the basic state pension.

The findings are being revealed as part of a nationwide study by Club Vita into private and public sector pension schemes. The results suggest that Britons are slowly beginning to understand the impact of increased longevity on the funding of retirement income; whether by the state or via our own savings. Half of the respondents stated that they want to carry on working after they reach their formal retirement age, either by keeping their current job or switching careers.

And those just starting out seem to be the most accepting about the need to work for as long as possible. Over three quarters (77%) of 16-24 year-olds said that they would be prepared to work past the official retirement age, compared with under half of those over 55.

The research also shows a link between household income and plans at formal retirement age. Whereas almost 60% of those with the lowest household incomes expect to officially retire, less than 30% of the highest earners expect to do so.

Nick Flint, Chief Executive of Club Vita, said:

“Provided we remain reasonably healthy, greater longevity is obviously a ‘good thing’, but it comes at a price. The UK population is slowly – very slowly – beginning to understand the link between longevity and retirement funding, at the state and personal level. We may not be living quite as long as some of those surveyed think – it’s actually around a five to six-year increase in typical lifespan from one generation to the next – but our increasing longevity will effect profound changes in our attitudes to work and subsequent retirement.”