50 per cent of adults do not understand the state pension – Do you?

Half of UK adults are unclear on how the state pension works, according to Standard Life’s Retirement Voice report.

Nearly one-third of those closest to retirement (aged 55 to 64) are still in the dark.

If you do not know how much you will receive or when payments will start, it could cost you.

Do you know what pension you are entitled to?

The full new state pension will rise to £11,973 per year from April 2025, yet 51 per cent of people surveyed could not name the current amount.

More than half do not know how to calculate what they are due, and over a third are unaware that National Insurance contributions (NICs) directly impact what they receive.

You usually need at least 10 years of qualifying NICs to receive anything, and 35 years for the full payment. Gaps in your record can reduce what you are entitled to.

The state pension might not fund the retirement you want

Even if you qualify for the full amount, the state pension only covers a very basic lifestyle.

According to the Pensions and Lifetime Savings Association, it falls short of what most people would consider a minimum standard of living in retirement.

It should be treated as a foundation, not a complete solution.

Check your NI record. Use the Government pension forecast tool.

Small actions now can prevent any financial problems down the line.

Think the state pension is just a safety net? Time to check if it is full of holes. Let us help you patch them. Contact us today.