Commenting on the prediction that the State Pension pot will run dry by 2035, Adrian Boulding, Director of Policy at NOW: Pensions said: “The warning from the Government Actuary’s Department demonstrates just how precarious the state pension really is.
“Increasing National Insurance contributions by 5% could go some way to mitigate this issue. But increasing NICs is easier said than done and raises uncomfortable questions around intergenerational fairness.
“Research* we conducted with millennials revealed one in five (22%) 18 – 30 year olds are pessimistic about the future of the state pension and don’t believe it will exist when they retire.
“To protect against an uncertain future, having workplace pension savings is essential which is where auto enrolment has the potential to make a big difference.”
Notes to editors
*Research conducted by Opinium online with 1,000 UK adults aged 18-30 in May 2016.