When I'm 64 (well, maybe 67 or 68)January 2021
What is the basic state pension really worth?
The State pension is rubbish, right?
I mean, it’s not even £200* quid a week – who can live on that?
Bear in mind that this a guaranteed income, underwritten by the UK government, index-linked (with a minimum increase annually of 2.5%), for the rest of your life.
If I was to tell you that, if you were to buy this on the open market at today’s rates, it would cost you something like £360,000**, would that change your mind about its worth?
That would make it more valuable than many people’s houses.
Oh well, when you put it like that…
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* The Basic State Pension for 2020/21 is actually £175.20 per week for someone with a full National Insurance record
** Source Assureweb: based on annuity rate for male non-smoker in good health aged 66
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