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Four out of 10 people approaching retirement do not know their State Pension age according to new research from the Institute for Fiscal Studies (IFS). It's a warning ahead of many potentially making a major retirement planning mistake. The State Pension age is the age when people can first receive their state pension.
Recent increases for both men and women during the 2010s have left the state pension age at 66 since 2020. But in a year’s time, it will start to increase again in monthly increments from 66 to 67 for anyone born after April 6, 1960. As the report says: "Those born after 6 March 1961 will have a SPA of 67 (with a further legislated increase to 68 due to start in 2044, though it is possible this will be brought forward).
" The greatest confusion was for the group where the State Pension age changes from 66-67, so those born from April 1960 to March 1961 (Image: Gov.uk) Overall, around 60% of people accurately identified their State Pension age within three months, while 18% thought it was higher than it actually is. Worryingly, 11% who did not know their SPA at all and another 11% expected to receive their pension sooner.
Together this means that more than one in five people (22%) have knowledge gaps that can lead to them making possibly poor decisions about their savings or when they retire. Women, those with lower qualifications, those with lower levels of wealth, the self-employed and those not in paid work were less likely to know their State Pension age, the research found. The report says: "For current pensioners, on average the state pension makes up about 44% of overall income .
As has been widely discussed in relation to previous increases in the state pension age, people whose understanding is inaccurate may make choices that are different from the ones they would have made had they possessed the correct information." How much will my UK State Pension be? This depends on your age. The full State Pension is currently £230.
30 weekly, or £11,975 annually, but this depends on how many National Insurance contributions you have made. This includes National Insurance contributions that you pay when you are working and contributions that are credited to you when you are unable to work, or when you were in receipt of Child Benefit in your name. You can check out how much you will get by going to the DWP State Pension website .
You can see how many complete years of National Insurance contributions you have made and a forecast of how much you will get. You can also see your Pension Credit qualifying age when you’ll be eligible for free bus travel Can I claim my State Pension while still working? Citizens Advice says: “You can choose to keep on working, whether paid or on a voluntary basis, while claiming your State Pension. “Any money you earn will not affect your State Pension, but it may affect your entitlement to other benefits such as Pension Credit, Housing Benefit and Council Tax Reduction.
” Recommended reading: DWP State Pension age will have to rise to 71 says report Martin Lewis' good news for anyone with under £20,000 in savings DWP Cost of Living Payment report shows more support needed How do I claim Pension Credit? You may also be able to claim Pension Credit when you reach State Pension age. You can apply on the government website . Pension Credit tops up your weekly income to £218.
15 if you’re single, or your joint weekly income to £332.95 if you have a partner. If your income is higher, you might still be eligible for Pension Credit if you have a disability, you care for someone, you have savings or you have housing costs.
Your income includes: State Pension other pensions earnings from employment and self-employment most social security benefits, for example Carer’s Allowance Not all benefits are counted as income. For example, the following are not counted: Adult Disability Payment Attendance Allowance Christmas Bonus Child Benefit Disability Living Allowance Pension Age Disability Payment Personal Independence Payment social fund payments like Winter Fuel Allowance Housing Benefit Council Tax Reduction If you have £10,000 or less in savings and investments this will not affect your Pension Credit. If you have more than £10,000, every £500 over £10,000 counts as £1 income a week.
For example, if you have £11,000 in savings, this counts as £2 income a week..
