Hike in state pension age means 1 in 10 people have no idea when retirement is | Personal Finance | Finance
The Insitute for Fiscal Studies (IFS) said its research had discovered that large numbers of people nearing retirement did not know when their state pension age was.
IFS told the Financial Times publication FTAdviser it was concerned with the findings because in a year’s time the state pension will increase in monthly increments from 66 to 67 for anyone born after April 6 1960, while those born after March 6 1961 will have a state pension age of 67.
IFS surveyed three groups, those whose pension age was 66, those whose age was between 66 and 67 and those whose pension age was 67. IFS said 60% of the total were accurately able to say when their state pension age was, while 18% believed it was higher than it was.
Of concern, said IFS was the 11% who did not know their state pension age at all and the 11% who underestimated it.
“In total, 16% of this age group either underestimated or did not know their pension age, while this is a minority of the group of people whose state pension age is between 66 and 67, this translates to around 130,000 people.”
IFS said the government needs to act urgently. IT said: “Given the risks associated with any unexpected delays to the receipt of the state pension, clear and timely communication of any future increases in the state pension age is important.
“We have previously suggested that the government should write to people around their 50th birthday setting out their currently legislated or likely state pension age, and that it should guarantee not to make changes to state pension age for anyone within 10 years of reaching it.
“This would help give people confidence about when they can expect to receive a state pension.”
