The Halifax pension health check

The centenarian age group is the fastest growing age group in the UK, rising by an astonishing 90 times over the last century, from just 100 centenarians in 1911, to 9,000 in 2006, according to research from Halifax Financial Services.

The research of consumer pension awareness has been published to coincide with the one hundred year anniversary of the state pension, introduced by Lloyd George's government in August 1908.

Key findings of the research from Halifax Financial Services:

79% of the population don't know when or how their personal pension will be paid out to them

At retirement, 83% are unaware how much of their personal pension they will be able to take as a tax free lump sum

61% don't understand the difference between the meaning of a personal pension as apposed to a state pension

35% of the public don't think they are entitled to a state pension, with 17% of those believing you don't get a state pension if you have too many savings

Reassuringly, 44% understand the meaning of an annuity, with 65% understanding that some pensions are linked to the stock market for long term rather than short term rises and falls

The latest figures from the Department of Work and Pensions show that state pension income was 16% as a proportion of the populations' weekly earnings in April 2008

In 2006/7 the average weekly household spend was around £443, however the basic state pension amounted to £93

Karen Crowshaw, Managing Director Halifax Financial Services, commented: "Our research highlights confusion over pensions amongst the British public. We are issuing a timely reminder for people to start thinking about their retirement plans."

"Costs are rising and people are living longer which means it is more important than ever before that people have the funds in place to support their lifestyle in retirement. It's important that people seek financial advice when arranging their pension."

For more information, visit halifax.co.uk