Thousands of people in the UK are misinformed about their state pension age (SPA), with new research revealing significant gaps in knowledge. According to a study conducted by the Institute for Fiscal Studies (IFS), many Britons approaching retirement are unsure of when they can begin claiming their state pension.
The research found that only four out of ten individuals with an SPA between 66 and 67 correctly identified their pension age within three months. Alarmingly, 42% of respondents overestimated the age at which they could claim their pension, while 12% underestimated it. An additional 5% admitted they were completely unaware of their SPA.
For those with an SPA of 67, the situation was slightly better. Around 60% of individuals correctly knew their pension age. However, the study still highlighted that approximately 60% of all respondents correctly identified their SPA within the three-month window.
Despite this, 18% of participants mistakenly believed their SPA was later than it actually is, and 22% had either no idea or underestimated the age at which they could access their state pension. This equates to roughly 130,000 people facing uncertainty regarding when they can claim their benefits, a situation that could lead to poor financial planning in retirement.
Heidi Karjalainen, senior research economist at the IFS, expressed concern about the findings, particularly as the SPA is set to rise from 66 to 67 in April 2026. “For many, this rise is imminent, and if they are unaware of this change, it could lead to significant challenges when it comes to retirement planning,” Karjalainen said. “Individuals who realize they have to wait longer than expected for their state pension may regret their decision to retire early or find that they haven’t saved enough.”
To avoid these surprises, Karjalainen stressed the importance of clear communication from the government and private pension providers. As the state pension age increases, staying informed about when you can access your pension is crucial.
Frequently Asked Questions (FAQ)
1. What is the state pension age?
The state pension age (SPA) is the age at which you can start receiving your state pension. The age varies depending on when you were born, with recent increases moving the SPA to 67 for those born after April 6, 1960.
2. How do I find out my state pension age?
You can check your exact state pension age through the UK government website. They offer a state pension age calculator to help you find out when you can begin receiving your state pension.
3. Why is the state pension age increasing?
The state pension age is rising due to increased life expectancy and changes in demographics. With more people living longer, the government is adjusting the age at which pensions are paid to ensure the sustainability of the state pension system.
4. What happens if I don’t know my state pension age?
Not knowing your SPA can lead to poor retirement planning. You may end up retiring earlier than planned, only to realize you have to wait longer to access your pension. This can lead to financial difficulties later in life. It’s important to stay informed and adjust your retirement plans accordingly.
5. How can I prepare for my state pension?
In addition to knowing your state pension age, consider saving into a private pension plan to supplement your state pension. Being aware of changes to pension ages and government announcements can help you make more informed decisions about your retirement.
Staying informed about your state pension age and future changes is essential to planning for a comfortable and financially secure retirement. Make sure to regularly check government updates and seek professional advice if you’re uncertain about your retirement planning.
