Over half of the UK population are unaware of government plans to reform the State Pension and the impact that will have on them, according to recent research. Among the 55 to 64-year-old age group, 32% are unaware of the changes.
The study found 57% thought the new flat rate State Pension would be worth less than £150 per week – the weekly amount recently set by the Government and due to come into effect in April 2016.
Underestimating State Pension values
Although most of the respondents underestimated the value of their State Pension and admitted to not knowing the details of the reforms, two thirds of men and women regard it as important to their retirement income planning. This is why it is vital to get a pension review as soon as possible so you can ensure that your pension is performing as well as you hope, or if it isn’t to get a financial adviser’s opinion on how to increase the performance of your pension funds.
Of those surveyed, just under half of 55 to 64-year-olds were unsure as to whether or not they would be better off under the new State Pension system compared to the current one. Contact us now so we can help you to plan for your future.
Key part of government reforms
The flat rate State Pension is a key part of government reforms to the UK’s retirement planning and will benefit savers by demonstrating the value of pension saving. But just under half of those aged between 55 and 64 who are about to retire have no understanding of whether or not they will be better off.
Women are more likely not to know the detail of the flat rate pension reforms – which require people to have worked and paid National Insurance contributions for 35 years – than men. Around 57% of women admitted to not knowing the details, compared with 43% of men.