Over three quarters (77 per cent) of UK adults aged 54 to 64 expected to become eligible for the state pension within 12 months of their actual state pension age, research by the Department for Work and Pensions (DWP) has found.

The research found that under half (42 per cent) of respondents knew exactly when they would reach state pension age.

The DWP's research also revealed that retirement expectations are changing, with 22 per cent of non-retired respondents expecting to retire at age 66 more than any other age.

Meanwhile, the majority still expected to retire before state pension age, with the average expected retirement age of 64.5 years.

The research also found that less than one in five (18 per cent) male respondents expected to reach the state pension age at 65, while 6 per cent of women expected to receive their state pension before 65.

Furthermore, despite 60 per cent of respondents being aware it is possible to defer the state pension, there was less awareness of the specific details of the policy.

Indeed, just under half correctly identified they could receive a higher weekly payment if they chose to defer their state pension.

In addition to this, 78 per cent correctly identified that the income from the state pension was taken into account when working out whether they have to pay income tax.

Meanwhile, half of respondents knew that national insurance did not apply to earnings after the state pension age.

One in 10 (10 per cent) of respondents intended to defer their state pension, citing the expectation that they would still be working as the main reason for this decision.

When asked hypothetically to choose between deferring for a higher weekly payment or a lump sum, the research suggested a “stronger” preference for the lump sum regardless of the generosity of the increment.

Furthermore, when asked the reason that they intend to claim the state pension immediately, 33 per cent needed the money or income, 28 per cent said they would be entitled to it, 16 per cent said they wanted to retire and stop working and 11 per cent said due to health issues.

The research also showed that 60 per cent of all respondents expected to have just about enough income to ‘meet their needs in retirement’, while 17 per cent expected to have ‘more than enough income to meet their needs’ in retirement.

However, women (14 per cent) were less likely to report an expectation to have ‘more than enough income in retirement to meet their needs’ than men (21 per cent).

Overall, the DWP concluded that retirement expectations are changing in line with increases to the state pension age, although early exit from the labour market remains an issue, and awareness of deferral is mixed.

It also suggested that the main factor driving the intentions of those who expect to defer was the expectation that they would remain in work at the state pension age.

The research pointed out people were generally aware the state pension age was increasing but awareness that these changes would impact individuals was high but not universal and that a lump sum payment appeared more attractive to respondents than a weekly increment.

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