Concerns have been raised over state pension understanding, after research from Royal London found that 51 per cent of those yet to access their state pension thought that everyone was automatically entitled to the full amount or didn’t know who is entitled.

As reported by our sister title, Money Age, the survey found that "worryingly", almost a third of people (32 per cent) thought they got their state pension automatically and did not need to apply for it.

In addition to this, nearly two fifths of people (37 per cent) thought that men and women were entitled to the state pension at different ages, despite the age at which men and women can claim their state pension being equalised almost five years ago in 2018.

The survey also found that fewer than half (46 per cent) of those not yet receiving their state pension knew that men and women would receive the same amount if they had made equal National Insurance contributions.

However, a similar proportion (45 per cent) did not know if married couples and individuals got the same or a different amount of state pension.

There was also confusion about how much the state pension pays, with respondents estimating that the state pension paid an average of £535 per month, around £350 less than the current full monthly amount of £886.

Furthermore, over half (52 per cent) of those who haven’t accessed their state pension have never checked how much they are likely to receive, while 45 per cent have never checked their state pension age.

Despite this, one in ten people not yet retired said that they expect to live of the state pension as their main form of retirement.

However, nearly half (48 per cent) of those below state pension age said that they couldn’t live on the current state pension of £886 comfortably, while nearly a third (32 per cent) of those currently receiving the state pension are struggling and have to supplement it with other income or savings.

Instead, the average monthly amount respondents said they would need in retirement was £1,216, 37 per cent more than the full state pension amount.

Commenting on the findings, Royal London consumer finance specialist, Sarah Pennells, stated: “The state pension is the foundation of most people’s income in retirement, but for one in five of those who’ve retired, it’s their sole form of income.

“With the cost-of-living challenges unlikely to ease any time soon, it is concerning that some people are heading to a retirement where they won’t have enough income for a good standard of living.

“The cost-of-living crisis is putting extra pressure on household budgets, but relying on the state pension alone could mean many years of making very tough choices about spending for millions of people, so the more that people can do now to provision for their retirement, the more comfortable they could be in their later years.”

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