Half (50%) of UK adults don’t know how much they’ll receive in their state pension, including 31% of those nearing retirement, aged 55-64, according to Standard Life’s Retirement Voice report. Almost a third (32%) of those questioned were unaware of the age they’ll receive it.
A substantial lack of understanding regarding other areas of the benefit was found in the survey conducted among 6,000 UK adults.
More than half (51%) of those surveyed admitted they had no idea of the current value of state pension payments and were also unaware of how to calculate their entitlement (52%).
Meanwhile, more than a third (34%) revealed they didn’t know that their National Insurance contributions (NICs) determine the level of entitlement and the amount of money they’ll receive in retirement.
The full new state pension amount is £230.25 per week for the 2025/26 tax year. However, the amount you get is dependent on how many ‘qualifying’ years of National Insurance payments you have.
How life insurance can benefit your health and wellbeing over the decades
Sponsored by Post Office
You’ll usually need at least 10 qualifying years on your National Insurance record to get any state pension and you’ll need 35 qualifying years to get the full new state pension if you do not have a National Insurance record before 6 April 2016.
‘Still a lot of confusion’
Dean Butler, managing director for retail direct at Standard Life, said: “With the state pension set to rise to £11,973 a year for the 2025-26 tax year, it remains a crucial part of many people’s retirement income. But despite its importance, there’s still a lot of confusion around how it works and how much people might get.
“Knowing when you’ll start receiving your state pension and how much you’re likely to get is an important part of planning for retirement. It helps you work out how much extra you need to save, when you could afford to retire, and what your overall financial picture will look like. Understanding how your National Insurance (NI) contributions impact your retirement is also vital, so you’re not caught out when the time comes.
“With the personal allowance frozen at £12,570 until 2028, there’s a good chance that people will pay tax on the state pension alone from 2026 or 2027. The Government might change the rules to avoid this, but it’s good to be aware of tax when planning for retirement.”
