Britons between the ages of 55 and 64 are being given an urgent reminder of what their state pension options are when preparing for retirement.
A recent study by later-life financial specialists Just Group has revealed that one in four people in this age bracket (25 per cent) are unaware they can defer their state pension.
The survey, which questioned 1,050 retired and semi-retired individuals, highlighted a significant knowledge gap about a financial option that could boost retirement income.
Currently, the state pension age in the UK stands at 66 for both men and women. Under existing Government plans, this will rise to 67 between 2026 and 2028.
Britons are unware of ways they can bolster their state pension
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For those entitled to the new state pension, available to individuals who reached retirement age after April 6, 2016, deferring payments can significantly help your finances.
By delaying their claim, pensioners receive an increase of one per cent for every nine weeks of deferral, which is equivalent to nearly 5.8 per cent extra per year.
In the 2025/26 financial year, the full new state pension is valued at £230.25 per week.
Consequently, anyone deferring their pension by one year would see their weekly payments increase by approximately £13.35.
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This adds up to an additional £694.20 each year, providing a substantial long-term benefit for those who can afford to delay claiming, analysts claim.
For individuals who reached retirement age before April 6, 2016, and are eligible for the basic state pension, they earn an additional one per cent for every five weeks they postpone their claim.
This equates to a 10.4 per cent yearly increase, or £954.20.
This additional income can be received either as enhanced weekly payments or as a lump sum.
Research from The Just Group also highlighted notable differences in awareness levels between genders.
Women were more likely than men to be unaware of the deferral option, with 26 per cent of women compared to 19 per cent of men admitting they didn't know it was possible.
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GETTYSurprisingly, 26 per cent of individuals aged 75 and over were also in the dark about the possibility of deferring the state pension.
Dean Butler, the managing director for Retail Direct at Standard Life "The reality is there’s a significant gap between what you get from the statepension and what you may actually need or want in retirement.
"The statepension only covers a very basic lifestyle – less than is needed for a minimum standard of living in retirement, according to the Pensions and Lifetime Savings Association - and, because it only starts in your late 60s, it won’t help to support you if you want to retire earlier.
"It should therefore only form part of your overall retirement plan and, so, it’s important to fully understand how much you might need to save into your personal or workplace pension plan to potentially be able to afford the retirement you want."
