Nearly 56 per cent of young adults in their 20s expect to have to wait until they’re over 70 years of age to claim the state pension, at least two years older than the expected state pension age, according to research by Royal London.
A third or 30 per cent of people think they won’t receive their state pension at all, and 50 per cent say it will be less than it is now.
The research also found that 37 per cent of people, or nearly four in ten, believe that eligibility requirements will alter by the time they retire.
The quantity of national insurance credits or contributions required to get the full state pension today equals 35 years of national insurance contributions or credits, although 74 per cent, were unaware of this requirement.
According to Royal London, those who only rely on the state pension should be informed that, at the current level of about £9,600 per year, it will barely be enough to cover essential necessities. As per the retirement living standards established by the Pensions and Lifetime Savings Association, which classify an annual income of £20,800 as necessary for a “moderate” lifestyle, it falls short of the “minimum level” of retirement income for an individual, which is set at £10,900 per year.
Additionally, 37 per cent of respondents to the study believed that the eligibility requirements would have changed by the time they reached retirement.
Royal London pensions expert Clare Moffat says: “For workers in their twenties, retirement is likely to be one of the last things on their mind with more pressing financial priorities like the cost-of-living crisis and paying bills, saving for a house or even a car, occupying their thoughts.
“But concerns about when and how much state pension will be available might lead to an expectation that they’ll need to self-fund a greater portion of their retirement. Future financial security is likely to mean working for longer than previous generations and also saving more.
“The good news is that there’s a long-time horizon in which to not only develop positive savings habits but benefit from growth through compound interest.”
