More than a quarter of homeowners over 40 expect to rely on state pension

More than a quarter (28 per cent) of homeowners over 40 expect the state pension to provide the bedrock of their retirement income, according to Canada Life.

Research from the firm found that 36 per cent of women and 22 per cent of men expected to rely on the state pension, despite the full basic state pension “currently standing at just £179.60 per week, or £9,350 per year”.

Almost half of the respondents polled (45 per cent) cited their workplace pension as their expected main source of income, while just over one in ten (11 per cent) said it would come from their personal pension.

Just under a quarter (24 per cent) of homeowners over 40 say they will retire at the state pension age, while nearly a third (31 per cent) of respondents said they planned to work beyond their state pension age, with this increasing to 50 per cent for those over the age of 60.

Additionally, 34 per cent said they intended to finish up work early and retire before their nominated state pension age, while 11 per cent said they had already stopped working before their state pension kicked in.

The research also highlighted that less than three in 10 (28 per cent) respondents planned on speaking to a financial adviser before making a decision about accessing their wealth in retirement.

Canada Life technical director, Andrew Tully, said: “Many people are looking to rely on the state pension to provide them with income in retirement. However, the amount received is not generous by any standard and as a result the onus is on individuals to take personal responsibility to save for retirement.

“Employees can build on the state pension and any workplace savings they have. Self-employed people face more of a challenge as they don’t have an employer to help fund their retirement.”

He emphasised that it was vital for people to check their state pension age, the amount they are due to receive and their eligibility for a full state pension “as the goalposts for the state pension shift”.

Tully said: “It’s equally important that those who have spent time out of employment check their record, claim any National Insurance credits possible, and think about making any top-ups in order to be entitled to as much state pension as possible. Taking a proactive approach, seeking the help of an adviser and making good decisions now will all help to fund retirements.”

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