Pensions - Articles - Most people are not receiving the full State Pension

Most people reaching State Pension Age are not receiving the full State Pension according to new figures that highlight a continuing reliance on the importance of private pension income for meet basic living costs in retirement.

 Responding to DWP caseload figures released Stephen Lowe, group communications director at Just Group, said: “The pension ‘freedom and choice’ reforms were backed up by the promise that the new, higher State Pension would be enough to provide a basic level of support if people did use up all their private pensions early.

 “Putting aside the thorny question whether State Pension alone can provide an adequate standard of living, the truth is that most people retiring since the reforms in 2016 do not even receive the full amount of State Pension.

 “DWP figures show of the 1.1 million who receive new State Pension, only 44% or nearly 500,000 people receive the full amount. About the same number receive at least three-quarters but less than the whole amount. That contrasts with those who retired under the old system where around 65% of people receive the full – albeit lower – amount of basic State Pension, potentially topped up with benefits.

 “It raises concerns that the level of the ‘safety net’ income provided by State Pension may be lower than people think. We would urge everyone approaching retirement to get a State Pension forecast and to take advantage of the free, independent and impartial Pension Wise guidance on offer to ensure they understand their likely retirement income before they start accessing pension money early.”

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