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Many UK Adults Have Never Checked State Pension Forecast, HMRC Warns
Confirmed
In Short: Around one in eight UK adults have not checked their state pension forecast, according to research for HMRC, as the agency urges people to prepare for retirement.
Research for HMRC indicates that around 12.5% of UK adults have never checked their state pension forecast, with almost 6.9 million people leaving their retirement planning to chance. This comes as HMRC is urging people to check their forecasts during Pension Awareness Week, which runs from September 15 to 18.
The research, commissioned by HMRC, found that almost a third of people have checked their state pension either online or through the HMRC app, providing them with an indication of what they could receive in retirement. However, many are concerned about losing track of pension pots from previous jobs or find the process too complicated.
Around 26% said retirement felt too far away to think about, while 24% were concerned about losing track of pension pots from previous jobs. Some also said they did not know how to check their state pension, while others expected the process to be complicated. HMRC chief customer officer Myrtle Lloyd emphasized the importance of checking the forecast as a simple step to prepare for retirement.
The findings highlight that many people are only thinking about their pension at significant financial moments, such as the beginning of a new tax year, rather than proactively planning for their future. People aged 45 to 54 are particularly likely to have never checked their state pension forecast, despite being at an important stage of retirement planning.
What's confirmed
- Research for HMRC indicates that around 12.5% of UK adults have never checked their state pension forecast, with almost 6.9 million people leaving their retirement planning to chance. This comes as HMRC is urging people to check their forecasts during Pension Awareness Week, which runs from September 15 to 18.
- The research, commissioned by HMRC, found that almost a third of people have checked their state pension either online or through the HMRC app, providing them with an indication of what they could receive in retirement. However, many are concerned about losing track of pension pots from previous jobs or find the process too complicated.
- Around 26% said retirement felt too far away to think about, while 24% were concerned about losing track of pension pots from previous jobs. Some also said they did not know how to check their state pension, while others expected the process to be complicated. HMRC chief customer officer Myrtle Lloyd emphasized the importance of checking the forecast as a simple step to prepare for retirement.
- The findings highlight that many people are only thinking about their pension at significant financial moments, such as the beginning of a new tax year, rather than proactively planning for their future. People aged 45 to 54 are particularly likely to have never checked their state pension forecast, despite being at an important stage of retirement planning.
What's still developing
- "Our latest report shows how sensitive the rental market is to even modest changes in how many homes are available for rent," said Richard Donnell, executive director at Zoopla.
- That remains lower than the rate of rising prices in general, but the property portal has forecast annual rent rises among privately rented homes will hit 4% or 5% by the end of the year.
- By Vicky Shaw, Press Association Personal Finance Correspondent Around one in eight (12.5%) UK adults have not checked their state pension forecast, research for HM Revenue and Customs (HMRC) indicates.
- Someone in their 20s or 30s can also use the forecast to understand how their National Insurance record is developing, while people closer to retirement can use it to identify potential gaps.