An increase to the state pension age is the “biggest financial fear” of Britons going into next week’s Autumn Budget, new research has found.
The concerns come amid calls to hike the retirement benefit’s age threshold to 71 under a proposal to save the Government money on benefit spending.
A survey of the British public conducted by Skipton Building Society has revealed the specific anxieties going into Chancellor Rachel Reeve’s fiscal statement.
In the poll of 2,000 adults based in the UK, the building society discovered 49 per cent of people guess the Budget will have a detrimental effect on their financial situation.
Comparatively, just under one in five respondents (17 per cent) feel optimistic about their finances ahead of Reeve’s announcement.
Pensions remain an issue of concern for many households, especially with rumours of a potential tax on retirement savings circulating.
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Rachel Reeves has been urged to stay away from pension savings in her October Budget PAHowever, the future of the state pension remains a primary concern going into Budget day with questions arising over the benefit’s age threshold and whether it should be means-tested.
Some 36 per cent cent of Britons are worried about an increase in the state pension age over the next couple of years, the survey found.
These concerns are more prevalent among women compared to men, with 43 percent of women worried compared to just 29 per cent of men.
As it stands, the state pension age will be raised from its current level of 66 to 67 sometime between 2026 and 2028.
The benefit is scheduled for a further review within two years of the next Parliament to review recommendations for an earlier increase to 68.
Research conducted by the International Longevity Centre suggest increase the state pension age to 70 or 71 by 2050.
This is in light of affordability concerns amid “widening demographic imbalances” that will hike benefits expenditure.
Based on Office for Budget Responsibility (OBR) figures, the cost of the state pension as a percentage of gross domestic product (GDP) will jump from 4.8 per cent to 8.1 per cent by 2071.
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State pension age will rise to 67 by 2028 then it will further increase to 68 GETTY
Some 30 per cent of people polled by Skipton said their biggest financial concern would be if the state pension became means tested.
Another 28 per cent of those surveyed admitted they were concerned about the potential removal of the triple lock on the state pension the most.
Skipton Building Society head of financial advice distribution, Helen McGinty, outlined why Britons should do to ease their worries.
She explained: “With costs rising and savings getting stretched, those with one eye on their retirement are concerned as budget speculation around pensions and retirement continues to grow.”