The new state pension is designed to be simpler, clearer and fairer. But if you know one thing about the state pension, it’s likely to be this: it’s complicated.
The state pension is changing. Anyone reaching state pension age from next Wednesday will do so under a new system. However, our research shows that most people are still in the dark as to what all these changes mean.
High awareness, low understanding
Our latest research found that while two thirds of people approaching the state pension age (50 – 64 year olds) were aware that changes are coming, most were confused about what the new system really meant.
Only one in five knew that from November 2018 the state pension age will be 65 for both men and women. And more than half didn’t know if those who have reached retirement age can top up their state pension or not.
Of those surveyed, four in ten admitted they don’t know what the full rate of the new state pension will be. Given some of the calculations involved, and that not many people will actually get that full amount initially, it’s really not that surprising.
Clearing things up
The new system aims to simplify how much people will receive and when they are eligible to claim the state pension, but there’s no doubt that it’s still complicated.
Given our research findings, it’s clear that more needs to be done to make sure that people understand what these changes are and what they mean for them.
So, do you know your ‘contracting out’ from your ‘top ups’? What’s the most important change that you think people need to know about?
Are you clear as to what the state pension changes mean for you?
No, not at all (46%, 596 Votes)
Sort of (27%, 359 Votes)
Yes I am (27%, 353 Votes)
Total Voters: 1,308