Why relying on the state pension isn’t a good idea
In the 2024/2025 tax year, the UK government is expected to spend £1,278.6 billion—a staggering figure in anyone’s book.
The news often talks about illegal immigration and how much it costs the government and in turn you and me. In reality, the Institute for Fiscal Studies (IFS) concluded that immigration-related spending in 2023/2024 was around £4 billion, and this year looks to remain similar. Putting it into context, that’s just 0.31% of total government spending.
Now let’s compare that with the cost of the state pension.
For 2024/2025, the government is projected to spend £166 billion on state pensions—over 13% of the total UK budget. And with an ageing population, that figure is only likely to increase.
What is the triple lock?
The Triple Lock system guarantees an annual rise in the state pension each tax year increases in line with whichever of three measures is the highest:
- Inflation in the September of the previous year, using a measure called the Consumer Price Index (CPI)
- The average increase in total wages across the UK for May to July of the previous year
- Or 2.5%
For the 2025/2026 tax year, the new state pension is expected to be £241.05 per week, or £12,534.60 per year.
At first glance, this sounds great. But let’s look into this a little further.
Looking ahead: The Unsustainable Trajectory
Let’s look at an example of someone born today. If the pension only grows at the minimum guaranteed rate of 2.5% each year, by the time they reach age 68, their state pension would be around £68,492.51 per year.
Sounds impressive, right? But that’s exactly the problem.
Can the government afford to fund a pension system paying nearly £70,000 per person annually, especially with an ageing population?
Personally, I still have 24 years and 8 months before I can access my own state pension. At the same 2.5% growth rate, my projected pension would be £23,208 per year by the time I retire. That’s nearly double the current rate.
To add to that – State pension spending could easily exceed £300 billion by the time I retire—which is nearly double today’s level. Clearly something will have to give!
A pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
What’s the Solution? Take Control of Your Financial Future
The numbers are clear: Relying solely on the state pension is a risky plan. Future governments may raise the pension age, reduce benefits, or adjust the Triple Lock to save costs.
Do you want to secure your own financial future—and not depend on the state pension?
Let’s have a chat. You can:
- 📞 Call me directly on 01483 654135
- 📅 Book straight into my calendar: Click Here
Corcillium Wealth Management is a trading name of 2plan wealth management Ltd which is authorised and regulated by the Financial Conduct Authority. It is entered on the FCA register (www.fca.org.uk ) under reference 461598. Registered office: 2plan wealth management Ltd, 3rd Floor, Bridgewater Place, Water Lane, Leeds, LS11 5BZ. Registered in England and Wales Number: 05998270
Approved by 2Plan Wealth Management on 08/12/2025
Leon Alden
Corcillium Wealth Management
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