HMRC is urging 45 to 54-year-olds to check their State Pension forecast. (Image: Getty)
Millions of people could be heading towards retirement without knowing how much they are likely to receive from the state pension, according to research commissioned by HMRC.
Around one in eight UK adults said they had never checked their state pension forecast, the research found. People aged between 45 and 54 were highlighted as particularly unlikely to have checked whether their pension is on track.
The warning comes as Pension Awareness Week gets under way, running from September 15 to 18, with financial experts encouraging people to take a closer look at their retirement plans.
Checking a State Pension forecast can take just a few minutes, HMRC said. (Image: Getty)
HMRC said checking a state pension forecast can take just a few minutes.
People can use the HMRC app to view their forecast and, where eligible, explore whether they can make additional National Insurance contributions to improve their entitlement.
Information about state pensions is also available through the Government’s website.
Myrtle Lloyd, HMRC’s chief customer officer, said: “Checking your forecast on the HMRC app takes just a few minutes but can make a real difference to how prepared you feel for the future.”
The research was carried out by Censuswide on behalf of HMRC, surveying more than 5,200 people across the UK in February and March.
Maike Currie, vice president of personal finance at PensionBee, said checking a state pension forecast was useful “financial housekeeping” regardless of age.
She said people in their 40s and 50s may be at a useful point to review their retirement finances because retirement is becoming more immediate while there may still be time to make changes.
Under the new State Pension system, people generally need 35 qualifying years of National Insurance contributions to receive the full amount, although the precise entitlement depends on an individual’s National Insurance record.
There are also rules governing when gaps in National Insurance records can be filled.
Currie said: “Your 40s and 50s are an ideal time for a financial mid-life MOT, when retirement is coming into sharper focus but there’s still time to act.”
Financial planners also urged people not to look at the state pension in isolation.
Charlotte Kennedy, a chartered financial planner at Rathbones, said retirement income could come from several sources, including the state pension, workplace pensions, investments and savings.
“A quick check of your state pension forecast can give you a clearer picture of your future income and flag opportunities to improve it,” she said.
“The earlier you understand your position, the more options you typically have.”
For people approaching their 50s, checking a state pension forecast can therefore provide a clearer picture of what they may receive from the state and whether other retirement savings may need to make up any shortfall.
