State pension triple lock ‘will be broken’ says Halligan in June
Make the most of your money by signing up to our newsletter for FREE now
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Of those who did check their state pension forecast, 14 percent said their forecast was lower than expected. About half of people who checked found they were set to receive up to £500 less than they expected.
For well over three million people, the state pension makes up about 60 percent of their income in retirement.
For a further 1.5 million people the state pension comprises roughly 50 percent of their retirement income.
This highlights that the state pension is a crucial part of people’s retirement and should be in the front of people’s minds when planning for retirement.
Checking one’s forecast is a helpful tool to help plan ahead, especially as 85 percent said their state pension was in line with their forecast.
Stephen Lowe, group communications director at Just Group said: “It’s good that about six in 10 did check what they will get but that still leaves significant numbers, including a slightly higher proportion of women (39 percent) than men (35 percent), lacking this important information.
The state pension makes up about 50 percent or more for roughly two-thirds of 7.5 million pensioners (Image: Getty)
“It is crucial people track how much they are likely to receive.
“Ideally, people should know exactly what their income is going to be before making the decision to retire because that’s the only way to ensure giving up work is affordable,” Mr Lowe said. “In the real-world retirement can arrive unexpectedly, perhaps due to poor health or redundancy.”
Similar numbers of people, about four in 10, retire without any financial planning and they usually cited the same reason.
Lack of time to plan was the reason given by 10 percent of men and 17 percent of women that they weren’t able to plan their pension.
Shocks such as these are much easier to bear if people have been planning ahead from an early point.
What is happening where you live? Find out by adding your postcode or visit InYourArea
People can make sure they are aware of any state pension changes and how it affects their finances by getting a state pension forecast, by taking professional advice or by getting free, independent guidance from Pension Wise, the government’s service.
What is the state pension? (Image: Express)
Getting a pension forecast will inform you how much state pension you will be entitled to, when you can claim it and how you may be able to increase it.
People can check their forecast using the free government tool – titled “Check your State Pension forecast”.