Advisers should consider putting “not having a state pension” into younger clients’ spreadsheets as an option, as it may not exist in the future.
That was the view of JP Morgan Asset Management chief market strategist for EMEA, Karen Ward, speaking at the Let’s Grow conference hosted by Parmenion today (22 January).
Ward, who was previously chair of the Council of Economic Advisers at HM Treasury when Philip Hammond was chancellor of the exchequer, said her time in government shaped her thinking about the sustainability of the UK’s welfare state.
She said the UK may not be in a position to look after people financially in the future.
Ward added that what does not help this situation is that the UK has an average age of 12 in terms of financial knowledge, which puts it behind its national peers.
If the state pension was removed, it could leave people more financially vulnerable in retirement.
Quilter research published in August 2025 found that the state pension is viewed as a critical source of retirement income, making up 50% of income for those aged 80 to 84, and 47% of household income for those aged 70 to 74.
A separate report from the Standard Life Centre for the Future of Retirement, released in December 2025, found that an additional 250,000 people aged 60 to 64 are now living in relative income poverty compared with 2010.
The poverty rate for this group rose from 16% in 2009–10 to 22% in 2023–24.
The state pension age is due to rise from 66 to 67, starting in April 2026.
Ward said the UK is setting the scene for the youth of today to have a “very nasty old age”.
She also noted that trust in financial services in the UK has never recovered from the financial crisis of 2008.
However, she said this opens the door for people to speak to financial advisers, who are often seen as trusted individuals in the profession.