State pension coffers 'will be empty' by 2033 without govt support

GAD report paints 'grim picture'

Hannah Godfrey
clock • 2 min read

The latest Government Actuary's Department (GAD) projections suggest the National Insurance fund used to pay out the state pension will be exhausted by 2033.

The projections in the report are based upon the assumption that National Insurance contribution rates and fund benefits remain as currently defined, subject to up-rating and re-rating policy.  It shows that from 2025 to 2026, benefit expenditure is expected to exceed National Insurance Contribution (NIC) receipts by an ever increasing amount, equivalent to about 1% to 1.3% of GDP. The report said the cause was an ageing society with increasing life expectancy, a projected increase in the average state pension benefit payable as individuals start to receive the new flat-rate state pen...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

Partner Insight: Embracing the future of retirement planning

Partner Insight: Embracing the future of retirement planning

Brooks Macdonald
clock 31 October 2024 • 2 min read
Pension tax rules uncertainty shows 'need to shift retirement planning'

Pension tax rules uncertainty shows 'need to shift retirement planning'

Needs to include wider considerations of capital drawdown beyond pensions

Isabel Baxter
clock 24 October 2024 • 2 min read
Looking ahead of the Budget: Implications for retirement planning

Looking ahead of the Budget: Implications for retirement planning

Advisers must ‘balance client demands with prudent advice'

Isabel Baxter
clock 18 October 2024 • 4 min read