New research from Axa has found that more than three quarters of people want the state pension system simplified, and would prefer that the state second pension be scrapped in favour of a more straightforward, single benefit. Almost 80% would like to see a single state unified pension, and 54% believe that such a pension should be available to all, regardless of how much they have paid in National Insurance contributions. The research found that only half of all respondents were aware that their NI contributions are used to pay today’s pensioners state pensions and not their own, while one in five have no idea at all what their NI contributions are used for!
Fifty four per cent of those polled believe that the state pension will have reduced in value, or will only be available to the poorest people in society by the time that they retire.
Our view
This is yet another call for simplification of State Pensions. Search the news archive for more on State Pensions.
Learn about State Pensions in our State Pensions Centre.