People have been urged to check how much state pension they are on track to receive as thousands are hoping to get the full amount but have never checked their entitlement.
Research from Censuswide found 73 percent of mass affluent Britons – people who earn above the UK average salary and have at least £1,000 in accessible cash or savings – expect to get the full state pension but less than half have ever check their National Insurance (NI) record.
Commenting on the figures, Lisa Caplan, director of OneStep Financial Planning at Charles Stanley, warned: “Too many are putting themselves in the vulnerable position where their retirement will depend on the state pension.
“The State Pension is, of course, something that can bring real value to retirement, but it is also only payable from 66 years old – which is also set to rise in the coming years.
“As it forms an important part of a retirement plan, it is important that people find out how much state pension they can expect.”
A person can use the state pension forecast tool on the gov.uk website to check how much state pension they will get when they claim the support.
The research showed only 16 percent of people understand that to get the full new state pension, a person typically needs 35 qualifying years of NI contributions.
The average consumer thinks a person only needs to pay 24 years of contributions, which is 11 years short of what is usually needed.
Ms Caplan added: “The onus very much rests on individuals’ shoulders now when it comes to retirement, and it is evident that more education is needed to help people feel more confident with their finances and understand what kind of retirement is in store for them.
“This is where expectation and reality could look very different to one another. Speaking to a financial expert can help individual’s stay on track to achieve the retirement they want.”
The full new state pension is currently £203.85 a week, or £10,600 a year, which is over £2,000 less than the amount needed for a single person to have a very basic standard of living in retirement, according to the Retirement Living Standards estimates.
An individual would need another £7,000 a year on top of the full state pension for a moderate standard of living.
Another factor for pension planners to consider is the rising state pension age, which is gradually increasing to 67 and then 68 over the coming years.
A person does not automatically receive their state pension when they reach state pension age but they have to claim the payments online.
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