State PensionJun 20 2017

Six in 10 don’t know their pension entitlement

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Six in 10 don’t know their pension entitlement

Research from Retirement Advantage revealed the majority of over 50s do not know what level of pension they may receive.

In a study of over 50s, 61 per cent admitted they had not requested a state pension forecast, meaning they would not know how much the state would pay them in retirement.

The analysis also showed just 35 per cent of respondents feel they are adequately prepared for their retirement.

Despite the results only one in 10 of those interviewed by Retirement Advantage said they were daunted by the prospect of retirement.

We don’t want people to lurch, like zombies, towards their retirement.Andrew Tully

Andrew Tully, pensions technical director at Retirement Advantage, said: “There is a perilously low level of understanding and financial activity in preparing for retirement. We don’t want people to lurch, like zombies, towards their retirement.

“Many of those we interviewed say they will need to supplement the income they receive from the state.

"This is unsurprising, but unless people have the numbers then they can’t properly plan how any income from a workplace pensions fits, or work out if they might need to unlock some of the value in property to get the desired standard of living.

"There is a real need for people to take time to sit down and consider their retirement plans. For those that are daunted or want an expert to help them, then a contacting a regulated financial adviser is a great place to start.”

Stephen Womack, director at David Williams IFA, said: “I’m not surprised the level of engagement is so low. People do underestimate the value of the state pension, which can be the equivalent of a six-figure annuity.

"I’d always encourage people to research what they can do to support and finance their retirement, and aim to do this as early as possible because time does have a habit of creeping up.”

dan.moore@ft.com