Less than half of new pensioners receive the full state pension

Less people are receiving the full amount for the new state pension than they did under the old system, the Department for Work and Pensions has revealed.

Caseload figures released yesterday show that of the 1.1 million who receive the new state pension, only 44 per cent, or nearly 500,000 people, receive the full amount.

About the same number of people now receive at least three-quarters of the new benefit.

In contrast, 65 per cent of people receive the full — albeit lower — amount of basic state pension under the old system, which could also be potentially topped up with benefits.

Just Group has said that the government statistics illustrate the importance of private pension income in meeting basic living costs in retirement.

Just Group group communications director, Stephen Lowe, said: “The pension freedom and choice reforms were backed up by the promise that the new, higher state pension would be enough to provide a basic level of support if people did use up all their private pensions early.

“Putting aside the thorny question whether state pension alone can provide an adequate standard of living, the truth is that most people retiring since the reforms in 2016 do not even receive the full amount of state pension.”

Lowe said that the figures raise concerns that the level of the safety net income provided by state pension may be lower than people think.

“We would urge everyone approaching retirement to get a state pension forecast and to take advantage of the free, independent and impartial Pension Wise guidance on offer to ensure they understand their likely retirement income before they start accessing pension money early,” he added.

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