Do you know what age you will be able to claim the State Pension?
As 2018 drew to a close I wrote a fresh piece on the State Pension, discussing recent rule changes that pushed the age at which the retirement benefit can be claimed further into the future for many millions of individuals.
Those changes introduced in December have added to the confusion surrounding the State Pension age for many people, and particularly for women who have had to accept a raft of age hikes since the turn of the decade. And astonishing survey results released last month revealed the extent of this problem.
Staggering stats
According to research conducted by YouGov and charity Age UK, approximately one in four people aged between 50 and 64 years are not aware of the correct age at which they can begin claiming their State Pension.
That translates through to an eye-popping 3 million individuals.
And it seems as if a great many of us are assuming that we will receive the retirement benefit sooner than we actually will. Age UK disclosed that around 18% of those questioned discovered that their actual State Pension age (SPA) is higher than they had anticipated after it was revealed as part of the survey.
For those who said that they didn’t know their SPA prior to the research, the number surged to 52%. A large number of respondents who thought they were clued up wrongly estimated when they would be eligible for the benefit, some 9% believing that they would receive their State Pension earlier that they actually will.
Following the results, Caroline Abrahams, charity director at Age UK, commented that “clearly there is still much confusion about the age at which people can expect to receive their State Pension and our worry is that many who have few resources to fall back on are in for a nasty shock.”
She added: “The most pressing and immediate concern is the hundreds of thousands of people in their fifties and sixties who are unable to carry on working today, and who are really struggling financially as a result.”
Don’t sit back…take action
The ever-increasing age at which Britons can expect to receive the State Pension is not the only worry that we currently face. The paltry amounts that the government currently pays to its elderly citizens — £8,546 per annum for those that quality for the full package — shows that Britons need to be proactive in order to avoid retiring in poverty.
Fortunately, the broad range of great companies out there means that, even in turbulent times like these, it’s possible to insure yourself against living out your final years on a shoestring by participating in the stock market. Share market weakness is nothing new, and over the long term, investment in equities has proved time and again to be an effective way to build a big nest egg for retirement. Indeed, the recent sell-off across global stock indices means that there are many terrific bargains right now waiting to be snapped up. And there’s no shortage of sage advice out there to help you on your way.
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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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