Lynn Bell warns that more individuals need to make provision for their retirement due to the potentially uncertain future of the state pension.
In the current tax year, for the first time, the cost to the UK government of state pensions is set to surpass £100 billion, according to the Office for Budget Responsibility. This figure does not take into account other benefits state pensioners can claim, and is set to rise each year.
There will come a point where the state pension scheme is unsustainable, as some countries across the world have already found.
The rising cost of UK pensions is caused partly by improved healthcare, which helps us all to live longer. The government has tried to redress it to some extent by increasing the age state pensions can be claimed, but this has not dropped the annual figure, which is now 14% of GDP.
In the UK, the employer must have a pension