Will Young Workers Be Offered State Pension?

Baroness Ros Altmann promised the State Pension would not be scrapped while she was minister - but questions are now being raised about its future

Emma Wall 22 December, 2017 | 8:17AM

 

 

Emma Wall: Changes announced to auto-enrolment this week have called into question the future of the state pension. The DWP has proposed that workplace pensions be offered to employees from age 18 instead of 22 which is fantastic news for the young workers. If you contribute £50 a month over 50 years that is an individual contribution of just £30,000. However, with the tax efficient bonus from their workplace pension and indeed your employer contributions, your pension pot could end up being 20, 30, 40, even 50 times this amount.

The State Pension is a considerable liability for the state and this paves the way for state pension not to be offered to young workers. However, this only will work if young workers do not opt out of their workplace pension. So, it's imperative that you take advantage of it when your employer offers it. 

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About Author

Emma Wall

Emma Wall  is Senior Editor for Morningstar.co.uk