Many in the dark over changes to state pension system, watchdog warns
Many in the dark over changes to state pension system, watchdog warns
Many people approaching retirement are still in the dark about aspects of the new state pension, according to research from Which? From Wednesday, the new system will take effect, which will affect people reaching retirement age on or after April 6 and aims to be easier to understand. Almost one in two people questioned admitted they had no idea just how much they would be eligible for. The new full rate will be £155.65 but in order to qualify for it, a person will have to have been working in the UK for more than 35 years.
It is vital that people check what their state pension is likely to be, especially when planning their future later life income.
Pensions Minster Ros Altmann
Anyone who was contracted out of the additional state pension, will not have their contributions counted for the period they were not included in it. Which? found that only 18% of the 1,000 people surveyed knew if they had ever been contracted out of the state pension. Being contracted out for even a short period of time could leave people with a much smaller pension than they were expecting.
While it's promising to see that awareness of the upcoming changes is high, we're only half way there. More needs to be done to make sure that people understand what the changes are and what they mean for them.
Which? executive director Richard Lloyd
