Half of under 50-year-olds believe there probably won’t be a state pension by the time they retire.
This is according to Phoenix Group’s longevity think tank, Phoenix Insights, which comes ahead of this month’s 8.5% increase in the state pension.
Additionally, 51% of adults expect to work up to at least their state pension age, which is currently 66.
It is set to rise to 67 between May 2026 and March 2028 and to 68 from 2044, and by 2050, it is expected it will increase to 71.
Less than a fifth (18%) of UK adults said they could live on the state pension alone in retirement, while 22% of over-55s did not know the current state pension age.
The majority of adults believe the state pension is there to ensure everyone has a minimum level of income in retirement and 84% feel that it is an essential role of government to provide the state pension.
At the same time, Aegon has urged the government to explore offering more choice over when people can start claiming their state pension.
Aegon made the case that the higher the state pension age is, the greater is the need to grant individuals the option to access it a few years earlier, subject to a reduction in weekly amount to make it financially fair.
Phoenix Group head of research and policy Patrick Thomson said: “The state pension matters to all of us. It is an important intergeneration social contract helping to reduce poverty among retirees, paid for from contributions of the working age population.
“It is the biggest single part of the social security system and has been the foundation for many people’s retirement income for over 75 years.
“However, Phoenix Insights’ research exploring public attitudes towards the state pension found that understanding of the system is very low, including around what the ‘triple lock’ is and when people can access their state pension.
“As an increasing proportion of the population reaches state pension age in the coming decades, it is important that the system is trusted, sustainable, understandable and supports the financial security of retirees.”
