Nearly 61 per cent of Conservative voters believe people should be prepared to pay more taxes to properly fund state pensions as people live for longer, according to Phoenix Insights.
The finding, published in a report by longevity think tank Phoenix Insights, comes during the middle of the Tory leadership contest and as the government mulls increasing the state pension age from 66.
Phoenix Insights estimates that by extending the state pension age, the government may save up to £4.9bn, and it is pushing the Treasury to reinvest £1bn of these savings to assist individuals who might be unable to work for longer.
Phoenix Insights has made many recommendations to the government, including a demand that the Treasury reinvest part of the money it saves to aid individuals who may be impacted.
Other findings from the study reveal that 50 per cent of people under 50 believe there probably won’t be a state pension when they retire.
Furthermore, it was shown that approximately 69 per cent of people think the government should “top up” the elderly’ low incomes in order to ensure that they can maintain a decent level of living.
Almost 76 per cent of respondents are in favour of allowing those who are unable to work to obtain the state pension sooner.
Additionally, 73 per cent think that the state pension exists to free people from the obligation of working in their later years.
Phoenix Insights director Catherine Foot says: “Nearly half of the population rely on the state pension for the majority of their income later in life; to protect future generations of retirees from poverty, Government needs to act now.
“Reinvesting just a fraction of the money saved by increasing the state pension age can help more people stay in work longer and support those for whom that is simply not feasible.”
“We know people worry that health issues, caring responsibilities and having the right skills will prevent them from working for longer – so it’s clear that raising the state pension age without a plan to help people earn or save more is a recipe for disaster.
“Living longer is one of the greatest gifts of the 21st century, but it’s one the UK really needs to plan for.”
