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.”

Back to Index

Similar News to this Story

Benchmarking DB transfers against workplace pensions
Under new rules to be introduced from 1st October, IFAs who are recommending a transfer out of a DB pension will need to benchmark the proposed destin
Comment on BBCs verdict to end free TV licences for over 75s
Please see the below comment from Steven Cameron, Pensions Director at Aegon, on the BBC’s decision to go ahead with a plan to end free TV licences fo
PPF supports struggling levy payers with payment extension
The Pension Protection Fund (PPF) has announced that it will give levy payers struggling as a result of the coronavirus pandemic up to 90 days interes

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.