New research from Standard Life has revealed widespread confusion around the State Pension.
As the full new state pension rises to almost £12,000 a year, half of UK adults are unaware of how much they’ll receive from their state pension, including 31% of those aged 55-64, according to Standard Life’s Retirement Voice report.
In addition, almost a third (32%) of adults and 12% of 55-64 year-olds don’t know the age at which they’ll qualify for the State Pension age.
The research, conducted among 6,000 UK adults, also showed that over half (51%) of those surveyed admitted they had no idea of the current value of state pension payments and 52% were also unaware of how to calculate their state pension entitlement.
Meanwhile, more than a third (34%) revealed they didn’t know that their National Insurance contributions determine the level of entitlement and the amount of money they’ll receive from the State in retirement.
Dean Butler, managing director for retail direct at Standard Life, said: “Knowing when you’ll start receiving your state pension and how much you’re likely to get is an important part of planning for retirement.
“With the personal allowance frozen at £12,570 until 2028, there’s a good chance that people will pay tax on the state pension alone from 2026 or 2027. The Government might change the rules to avoid this, but it’s good to be aware of tax when planning for retirement.”
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