Trust issues ‘rampant’ within pensions – Hargreaves Lansdown

Only 28% of under-35s and 35% of those aged between 35 and 54 think the State Pension will still be around when they reach retirement, new research from Hargreaves Lansdown revealed.

The new analysis, taken from a nationally representative survey of 2,000 people and carried out by Opinium in October 2019, also revealed that 23% of over-55s, despite being closer to hitting retirement, aren’t sure the State Pension will be around when they get there.

Hargreaves Lansdown’s survey also revealed that women had suggested they are more doubtful the State Pension will be sticking around – with just 36% expecting a State Pension when they hit retirement, compared to 43% of men.

Hargreaves Lansdown senior analyst, Nathan Long, commented: “Trust issues are running rampant within pensions, even the State Pension – the bedrock of everyone’s retirement – is being eyed with suspicion.

“Less than a third of people under 55 expect they’ll get a pay-out from the Government. It’s telling that women are less trusting than men, given they’ve seen most change to their State Pension in recent years.

“The new State Pension pays £168.60 per week, which would cost more than £300,000 to buy as an annuity. So, for those who really don’t think they’ll be getting anything from the Government, they’re anticipating quite an additional burden.

“The chances of getting nothing at all from the State are slim, but increasingly building up private pension savings provides flexibility over when you finish work and prevents your retirement plans being side swiped by a future Government intent on making ends meet.”

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