Expert gives 4 reasons 750,000 state pensioners are on the 'wrong pension'

Around 750,000 people are not receiving the correct state pension amount either due to errors in records or the DWP) not making adjustments when there is a change to someone's circumstances.

Standard Life, which revealed the shocking statistic, said four main groups of Brits were likely to be affected. The pension provider said those who had and were not in paid employment, women whose husbands retired from 17 March 2008, those over 80 and on a low pension, and those receiving Universal Credit, were at risk of getting a lower state pension than they may be entitled to.

Standard Life said its survey of 6,000 adults had also revealed a widespread lack of awareness around the state pension, with many adults unsure of how much they will receive and when they will start receiving it.

Dean Butler, managing director for retail direct at Standard Life, part of Phoenix Group said around 750,000 people are were not receiving the correct amount either due to errors in National Insurance records or the Department of Work and Pensions () not acknowledging a change to someone's circumstances.

He said: "If you've time spent raising children and were not in paid employment make sure to check that you have received NI credit for this period. For women whose husbands retired from 17 March 2008 make sure to check your entitlement to ensure that it was increased appropriately, and if you are over 80 and on a low pension, check that the has assessed you for the over 80's rate. Finally, if you've been receiving Universal Credit, double-check that you have been getting NI credits."

As the full new rises to almost £12,000 a year,Standard Life found that half of UK adults (50%) appeared unaware of how much they'll receive from their , including 31% of those nearing retirement, aged 55-64.

Meanwhile, nearly a third of UK adults (32%) and 12% of 55 to 64-year-olds do not know the age at which they'll qualify for the age - their age.

Over half of those surveyed admitted they had no idea of the current value of payments (51%) and were also unaware of how to calculate their entitlement (52%). Meanwhile, over a third (34%) revealed they didn't know that their National Insurance contributions determine the level of entitlement and the amount of money they'll receive from the State in retirement.

Butler said: "Knowing when you'll start receiving your and how much you're likely to get is an important part of planning for retirement. It helps you work out how much extra you need to save, when you could afford to retire, and what your overall financial picture will look like. Understanding how your National Insurance (NI) contributions impact your retirement is also vital, so you're not caught out when the time comes.

"With the personal allowance frozen at £12,570 until 2028, there's a good chance that people will pay tax on the alone from 2026 or 2027. The government might change the rules to avoid this, but it's good to be aware of tax when planning for retirement."

What is the ?

Butler said: "The is regular payment made to you by the government every four weeks once you've reached age. Not everyone is entitled to the full , and the amount you receive might not be enough for you to live on. Therefore, it's important to factor your into your retirement planning and ensure have a good idea of how much it might be worth, when you can claim it and how it will stack up with your other retirement savings.

What's the current amount?

Butler said: "The full new amount is £230.25 per week for the 2025/2026 tax year. However, the amount you get is dependent on your how many 'qualifying' years of National Insurance payments you have. You'll usually need at least 10 qualifying years on your National Insurance record to get any and you'll need 35 qualifying years to get the full new if you do not have a National Insurance record before 6 April 2016.

What is my age?

Butler said: "Your earliest age you can start receiving is known as your age. You can find this out easily on the UK Government's website. Men born before 6 April 1951 and women born before 6 April 1953 can claim the basic now, but if you were born on or after these dates, you'll be eligible for the new when you reach age. This age is regularly reviewed to account for factors such as affordability and life expectancy - it is currently 66 but will rise to 67 by 2028.

"Despite this, modern, flexible workplace and personal pension plans normally let you start taking your money from the age of 55, rising to 57 in 2028. So, you can access some of your pension benefits before you receive your .

How the work?

The purpose of the is to ensure that the doesn't lose value over time. It guarantees that, each year, the will rise by the highest of three measures: inflation in the September of the previous year (as measured by Consumer Prices Index); the average increase in total wages across the UK for May to June of the previous year; or 2.5%. Therefore, if UK wage growth stays around its current figure of 5.8% between May and July, it will determine the increase under this year's .