Aegon calls for robust checks on ‘mind-bogglingly complex’ state pension entitlements

by | May 2, 2023

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Money jar with pension written on

Steven Cameron,  Pensions Director at Aegon comments on the Labour Party’s analysis of Government figures, where they claim that one in 10 pensioners did not receive their full benefit:

“With the Labour Party claiming Government figures show 1 in 10 state pensioners are not receiving their proper entitlement, all eyes will be on next week’s official DWP figures on the accuracy of state pension payments. Initial estimates for the 2022/23 tax year are due to be published on 11 May. 

“The state pension has been through so many changes over the years that it’s extremely difficult for a recipient to be able to check the Government’s calculations to make sure they’re getting the correct amount. The old state pension was supplemented by various earnings related top-ups, but not everyone qualified and some schemes ‘contracted out’ their members, swapping part of the earnings related state pension for a higher workplace pension. The new state pension introduced for those reaching state pension age after 5 April 2016 was supposed to be simpler, but complex transitional arrangements will run for decades, meaning it can be mind-bogglingly complicated to do the sums. The rules around whether or not a surviving spouse is entitled to ‘inherit’ some of their partner’s state pension have also changed over the years. Last but not least, you needed 30 years of qualifying National Insurance payments for the full old state pension and 35 years for the full new state pension, with your entitlement scaled back if you don’t meet this.


“All of this makes it particularly important that the Government now undertakes robust checks on if those already receiving their state pension are getting their full entitlement, and if not, to make good urgently on any past underpayments.”

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