It comes as Government spending on welfare has increased dramatically.
Government spending on welfare has increased dramatically (Image: Getty)
Young Brits should prepare themselves for a possible retirement without a state pension, a former MP has warned. It comes as Lord Mackinlay of Richborough has warned that the nation is facing huge pressures from the shifting demographics.
“Young people need to prepare for a world where the state pension doesn’t exist,” he wrote. “Our welfare system is straining under the weight of a population it was never designed to support.” The former MP, who sat on the DWP and Public Accounts Select Committees, said he had been raising concerns about the demographic structure for more than 25 years. He said the state pension system was originally built on the assumption that large numbers of young people would work to support a smaller number of pensioners.
Brits have been issued a warning about the future of state pensions (Image: Getty)
However, he argued in The Telegraph that the former demographic structure has changed, and what was once a healthy pyramid is now “a slightly centre-bloated cigar”.
The nation’s pension population is forecasted to increase to 13.7 million by 2032, while the birthrate continues to fall.
But the issue goes far beyond age. The Government spending figures on welfare currently exceed the money coming in from Income Tax. The Government has spent £333 billion on financial support, while income tax has generated £331 billion.
And the spending figures could rise as forecasts suggest that 4.4 million people will be claiming Personal Independence Payments by 2030/31, with 4.2 million claiming Universal Credit.
The warning comes as millions of older Brits will see their income rise with the full new State Pension increasing by £575 under the Triple Lock.
Pensioners’ incomes are expected to rise by up to £2,100 under Labour, in addition to above-inflation increases already worth up to £395 in real terms.
The Government says it will spend an extra £6billion on State Pensions and pensioner benefits between 2026 and 2027, alongside wider measures, such as higher wages and lower energy bills.
Work and Pensions Secretary Pat McFadden said: “I know global shocks, and the effects they have on our living costs, will be increasing anxiety for many households.
“This Government will always protect our pensioners, and that’s why we are raising the full rate of new State Pension by up to £575 this coming year.”
