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Over 55s Unaware Of New State Pension Age

A quarter of older workers are unaware of the new state pension age, according to the CIPD.

Of the 1,600 employees surveyed, 26% of those aged 55 and over said they don’t know that the state pension age will increase from 65 to 66 between 2018 and 2020.

48% aged 35 to 54 are unaware that the age will increase from 66 to 67 between 2026 and 2028.

36% of respondents reported being unaware that they need to pay national insurance contributions (NICs) for 10 years to acquire the minimum state pension.

32% did not know that they must pay NICs for 35 years to receive the full state pension.

37% of all workers believe they will have to work past their retirement age of 65. This figure rises to 49% among workers over 55 with many predicting the average retirement age to be 70.

Further findings:

  • 32% believe that working longer will keep them mentally fit
  • 27% desire to earn more money to continue enjoying themselves.

Charles Cotton, pay and reward adviser at CIPD, said:

“It’s clear that many people aren’t fully aware of what kind of pension they might receive or when, especially if the state pension is going to form a significant part of their retirement income.

“To reap those opportunities, employers need to start reviewing and adapting their people practices as well as the design of the organisation, jobs and work to ensure that they are fit for the new purpose.”

For any help or advice with financial planning talk to RPD

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