Pensioners warned ‘nasty shock’ awaits them in retirement – check your pension

The current state pension age is 66 for both men and women, however, the rise to 67 has been brought forward to between 2026 and 2028 and 68 between 2044 and 2046.

This means many state pensioners will have to wait years longer before receiving their state pension which they may not have planned for.

Britons are urged to double-check when they will start to receive their state pension as this could help them plan ahead for the future.

New research from Hargreaves Lansdown shows that only 41 percent of people are confident they will be able to afford to retire.

Experts explain that one of the most important tips for planning for retirement is to check their state pension.

The earlier people check their state pension age and amount, then the more time they will have to ensure they can create a plan to get on track to ensure they have enough to retire.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown said: “Our retirements remain a mystery with many unable to specify how, when, or even if they think they will ever retire. Only 40 percent know when they will be finishing work and well over half don’t know how much they’ve got in their pensions.

“Many don’t know how much income they are likely to need and less than half understand the different options available for taking income. Any retirement plan needs to have flexibility built into it, but this looks like most of us have no plan at all.

“You can argue that when you are young you don’t necessarily need to have all the detail but a closer look at the figures shows that even those close to retirement – the over 55s have yet to give their retirement much thought.

“Well over half (55 percent) don’t know how much income they might need, and a similar proportion doesn’t know how much they’ve got. Almost 60 percent have no idea when they might finish work.”

Britons can get a state pension forecast that will tell them when they can get their state pension. If they have any gaps, they can think about whether to fill them.

Individuals need at least 10 years of National Insurance contributions (NICs) to qualify for the new state pension and 35 years to receive the full amount.‌

To get the full basic state pension people will need a total of 30 qualifying years of National Insurance contributions or credits (NICs).

Qualifying years are accumulated through working but can also be earned by receiving certain benefits or making voluntary contributions.

Britons can check how many NICs they have by getting a state pension forecast on the Government website.

A full NI year usually costs £824 and adds up to £275 each year to one’s pre-tax state pension.

For this tax year, 2023/204 the full amount of state pension is worth £203.85 a week or £10,600.20 a year. This could be a good starting point of income people need when they retire.

Ms Morrissey continued: “We’ve been through a lot in the past few years – the pandemic and the cost-of-living crisis has pounded our budgets leaving us with precious little to set aside for the future. It’s understandable that people are focusing on the here and now given the current difficulties.

“However, it’s vital that those getting closer to their retirement age take the time to think about what they want their retirement to look like and put some kind of plan in place.

“If you find yourself running behind where you need to be you still have a chance to make up the difference or at least think about an alternative whether that be amending your lifestyle, retiring later, or opting to work part-time. This is far better than sleepwalking towards retirement and potentially getting a nasty shock when you get there.”

The state pension age is the earliest age someone can start receiving their state pension.

By using the tool on the Government website, people can find out when they’ll reach state pension age, their Pension Credit qualifying age and when they’ll be eligible for free bus travel.

It should be noted that the state pension age is regularly reviewed, so the results of this tool may change in the future.