People coming up to retirement are still uncertain about how the new state pension will affect them, according to Which? research.
The independent consumer advice group found two-thirds (68%) of 1,000 people aged between 50 and 64 years were aware of changes to the state pension when they were interview in February. This figure rose to 80% of those aged between 60 and 64.
However, many were uncertain of how the system changes would affect them. For example, only one in five (21%) knew the state pension age would be 65 for both men and women from November 2018.
More than half (55%) did not know if people who had reached retirement age could top up their state pension.
While 44% were unaware what the full rate of the new state pension would be when it comes into effect on 6 April. It will be at a single tier rate of £155.65 per week.
Also, just 18% knew if they had ever been contracted out of the state pension.
Which? executive director Richard Lloyd said: “More needs to be done to make sure that people understand what the changes are and what they mean for them.”
Commenting on the results, Zurich head of corporate funds proposition Martin Palmer said: “To help people plan properly for retirement, the government needs to ensure that the planned pension dashboard includes a forecast of the state pension, as well as allowing savers to see all their other pots in one place.
“It’s hardly surprising that so few people know the state pension age. The reality for people in their early 50s is that, while current provisions assume they will retire at 67, this is likely to have risen further by the time they get to retirement.
“Although it’s clearer how much people will get under the state pension, there is still uncertainty over when they will actually start to receive it.”
Jelf Employee Benefits head of money at work Jo Thresher said: “Pensions are complicated and often the first port of call to find out more about pensions is through the employer.
“Most employers do not realise the great changes they are being made to state pensions nor how long some of their employees will have to wait to take these benefits. Most will need both state and private pension provision to afford to retire and without the link between the two being explained made the employee could fall way short on plans. It is not the employers’ duty but it will be their problem,” she added.
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