What do you think is the future of the UK state pension?

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The currents system is unsustainable, the forecasts for spending on pension predict it will increase from 100B to 110B by 2022-23.

https://obr.uk/forecasts-in-depth/tax-by-tax-spend...

In addition to that is the ever-falling support ratio, meaning fewer working people to every pension claimant.

What do you think will happen to the state pension? Will the benefits be eroded away by inflation? Or will the pay-as-you-go system be ditched?

I personally think that we should head towards a funded system, either wear all NI contributions go into the same fund or each individual has his/her own fund and can determine the investments based on risk level.

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Phooey said:

I can't see how it won't end up being means tested

Means-testing will cause a big stir, many will complain about having to pay NI for other people's retirements. The current system is based on the illusion that NI contributions are funding your own retirement when in fact they are paying for the current pensioners.

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CzechItOut said:

Exactly. They will start off with people who have huge pension pots and the argument will be "why does the metropolitan elite (what whatever the chosen nomenclature is at the time) need a state pension" and then the threshold will be gradually lowered.

The question of course is whether they will take into account simply your pension pot(s) or total assets.

The overly simplified terminology of referring to them as "pots" I think is unhelpful to the debate, they are assets that can go up and down in value depending on the market and can also have different risk profiles.

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markcoznottz said:

CB was just tinkering. This is big deal. Civil service will just keep raising retirement by age to 70+. Job done. A sort of soft default.

I very doubt that simply raising the SPA past 70 will have a large enough effect considering how sharply the support ratio is falling

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Dixy said:

Fortunately the generation who stole all the pension money also abused antibiotics so there will be a huge pandemic that will inevitably wipe out a higher proportion of wrinklies.

Wow, that's dark