On the go: Almost four in 10 people failed to check their state pension forecast before retirement, according to new research from retirement specialist Just Group.
The research, drawn from 1,043 UK retired and semi-retired adults aged 55 and over, surveyed on behalf of Just Group, found that among those who did check their state pension forecast, 14 per cent said it was less than they had expected, with about half saying it was £500 a year less than they had anticipated.
While the research highlighted that the majority of people do check what they will receive at retirement, the data also show a slight gender imbalance, with a slightly higher proportion of women (39 per cent) than men (35 per cent) not checking their state pension forecast.
Furthermore, roughly four in 10 people retired with no financial planning, while one in 10 men and almost one in five women said they had no time to plan, according to the research.
Of the 24 per cent of those surveyed who said their forecast was not what they were expecting, a third said it was between £250 and £500 less, while a quarter said it was more than £500 less.
Some were pleasantly surprised, however, with a third of that 24 per cent reporting it was £250 to £500 more than they were expecting, and about one in 10 said it was £500 more.
Commenting on the findings, Stephen Lowe, group communications director at Just Group, said: “Ideally, people should know exactly what their income is going to be before deciding to retire because that’s the only way to ensure giving up work is affordable.”
He added: “In the real world, retirement can arrive unexpectedly, perhaps due to poor health or redundancy.
“Those shocks are easier to deal with if people have started considering their options from their early fifties, for example, by getting a state pension forecast, taking professional advice or the free, independent and impartial guidance available from Pension Wise, the government’s service.”
