Alastair Stewart sends warning about future of pensions

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GB News’ host Alastair Stewart questioned whether “how financially vulnerable Britons will be” when they stop working, amid fears over the future of the state pension. This comes as Chancellor Rishi Sunak prepares to deliver Wednesday’s Autumn Budget. Mr Stewart said that leaks surrounding the Budget included a sooner-than-expected jump in retirement age for the state pension.

He cast doubt on whether the triple lock on pensions “would ever be restored”.

Mr Stewart told GB News viewers: “With the exception of the raid of higher rate tax relief on private pension contributions, there is very little in the tsunami of budget leaks about pensions.

“A few days ago, there was one leak that caught my eye. The age we can claim a pension is likely to rise yet again – and sooner than thought.

“The context surrounding this rise was the state of the public finances, the public deficit and long-term government debt.

“The days of pensions for women at 60 and men at 65 have long since gone. It is now 66 for everyone but the Government eventually plans to raise it to 67, and then 68.”

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He continued: “That leak suggested that could come sooner than we had expected.

“When the state pension started, people could expect to spend a quarter of their adult life in retirement – now it is a third. It has been increasing ever since.

“The number of pensioners in our ageing population is growing. The pension population is expected to grow from 12.5 million now to 17 million by 2042.

“The state pension already costs us £113bn. That is 16 percent of all Government spending and twice what we spend on education.

“Due to the Covid strains on the public finances, the triple lock guaranteeing the state pension has been, well, rested.

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“The state pensions rose last month – but less than if the prices earning inflation rule still applied. It rose by 2.5 percent instead of something over 6 percent.

“And there is no guarantee that this will be restored.”

He questioned whether the idea of retirement was “rapidly evaporating,” asking: “Will we ever stop working?”

This comes amid claims that the Chancellor could go on the attack against the pensions lifetime allowance. 

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If people exceed the lifetime allowance, HM Revenue & Customs hits them with a 55 percent tax charge, making it one of the most punitive levies of all.

A decade ago the lifetime allowance stood at a thumping £1.8 million – but now it sits at £1,073,100.

More than 290,000 workers have already busted through the lifetime allowance, according to Royal London.

Another 1.25 million are on course to breach the allowance, but their numbers could soar if the allowance is cut back. 

Tom Selby, head of retirement policy at AJ Bell, wondered whether Mr Sunak could cut the lifetime allowance to £900,000 or even £800,000.

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