More than half unaware of state pension changes

Among the 55-64-year-old age group 32% are unaware of the changes.
 
Its nationwide 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.
 
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.
 
Of those surveyed by MetLife, just under half of 55 – 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.
 
Dominic Grinstead, Managing Director, MetLife UK, said:

“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 it is striking that awareness is relatively low and the industry and the Government need to work to properly communicate the benefits of the reforms.”
 
“The fact that just under half of those aged between 55 and 64 who are about to retire don’t understand whether or not they will be better off reflects the lack of knowledge people have about retirement.”
 
“People clearly attribute value to their state pension even if they underestimate how much it’s worth, MetLife advocates greater financial education for people across all ages and from all backgrounds so that they can make informed decisions regarding their financial security.”
 
Women are more likely to not 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.