Everyone knows the UK pension industry is looking pretty sorry for itself, but in a new report by AXA, this is only the tip of the iceberg.
More than 3 in 5 UK citizens are intending to rely upon their state pension fund in retirement, which only spells disaster. It is also a clear indication of how private pensions have failed.
64% of people in the UK will be planning to depend on their state pension, but because of several different taxes and changes in regulations, state pensions are now looking at huge deficits. The raid on pensions helped ‘line the government’s coffers’ but has proved almost fatal for state pensions. Even if taxes were reversed on pensions, this would almost definitely be too little too late.
With more pressure likely to be put on state pensions, the government is going to find it increasingly hard to cope.