Kayleigh Priest said she doesn't think there will be a state pension when she comes to retire
The state pension age is set to rise to 68 in 20 years’ time – up from the current 66 – but there are growing concerns it will need to rise even higher to remain financially sustainable.
But is this fair to workers currently grappling with high house prices, childcare and other living costs – meaning they may not be able to save as much as they’d like into a personal pension?Kayleigh Priest, 35, from the West Midlands, is working on the assumption there will be no state pension by the time she reaches her late sixties.
Women have significantly lower pension provision than men on average because they are more likely to take time out of the workforce or go part-time to cover caring responsibilities. One of the big reasons for Kayleigh becoming self-employed four years ago was the fact that it gives her a lot more flexibility. Previously, she worked in office administration roles. Her goal is to develop forms of passive income streams to reduce the time she spends working as she gets older.
“It’s better not to get your hopes up. I’d rather take it as a big bonus if I can afford it after all.”When saving for retirement, you have a few options. First, you could save into a private pension or SIPP . This way, you’ll benefit from tax relief on contributions and you’ll get employer contributions if you are employed. You can take money out of your pension from the age of 55 .