State pension warning as many people hugely misunderstand basic rule

People have been urged to make sure they understand the rules around the state pension. The benefit remains a key part of many older people's retirement finances, so it's important to understand how much you are entitled to and when you can claim your payments. The full new state pension is currently worth £230.25 a week, or £11,973 a year.

One aspect of the state pension that people commonly misunderstand is the age when they can claim the support. The state pension age is currently 666 for both men and women, although it will be increasing from next year, rising to 67 in stages between April 2026 and April 2028.

New research from Standard Life, part of Phoenix Group, showed nearly one in 10 people think the access age is still 60, while a third of those surveyed thought it had already gone up to 67.

Mike Ambery, retirement savings director, said: "This lack of awareness likely stems from the way changes have been phased in gradually, depending on date of birth, making the rules harder to follow. Many argue that communication hasn’t always been as clear as it could be."

He pointed to another worrying case of people misunderstanding the state pension age. He said: "Often people confuse the age they can access private pensions with when they can claim the state pension." The age you can access your private pensions is currently 55, more than a decade earlier than the current state pension age.

This will be increasing to age 57 from April 2028. Mr Ambery warned that younger people can see their retirement "as a distant concern" and so they don't keep track of the changing rules.

He said: "If future increases to the state pension age aren’t communicated effectively, there’s a real risk of people being caught unprepared."

The expert said that those on a lower income or who have fragmented work patterns are particularly at risk of not appreciating the importance of the state pension, and failing to plan properly for their later years.

He said: "This includes many self-employed people, who often lack access to workplace pensions and may face irregular income patterns

"Carers and those who have taken extended time out for child-related career breaks also face potential challenges, with gaps in National Insurance contributions potentially affecting their state pension entitlement and periods of lower or no pay impacting their ability to build up private savings."