State pension warning for millions of Brits who are between two specific ages

Millions of individuals born before 1965, particularly those who were self-employed, are being encouraged to review theirstate pensionentitlement.

Phoenix Insights' research indicates that two-thirds of freelancers and business owners nearing retirement are facing a pension crisis.A staggering 64% of those aged between 60 and 65 have no private retirement savings at all.

Dean Butler, the managing director for Retail Direct at Standard Life, part of Phoenix Group, has voiced his concerns. It comes after reports that state pensioners could lose DWP payments after 'unfair' £10,000 rule.

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Dean shared: "While self-employment can bring autonomy, it also brings new financial responsibilities. One of the most often overlooked is pension saving without an employer to set up a pension plan or contribute to your pot, it's especially important to stay on top of your retirement savings."

He further explained: "While those who have always worked for an employer will be used to NI contributions being taken out of their salary automatically, this is not the case when you become self-employed. You can make these payments through your yearly self-assessment or by making payments online."

The Department for Work and Pensions (DWP) has increased the state pension to £11,973 for the 2025/26 financial year. However, the Pensions and Lifetime Savings Association warns that a single person needs £14,400 annually to maintain even a basic standard of living during retirement, reports Birmingham Live.

This suggests that state pensioners could face a shortfall of more than £2,400 compared to the current state pension provision. The new State Pension can be claimed once you reach the State Pension age if you're a man born on or after 6 April 1951, or a woman born on or after 6 April 1953.

For those born before these dates, these rules do not apply. Instead, you'll receive the basic State Pension and may also qualify for Additional State Pension.

To be eligible for any new State Pension, you will need 10 qualifying years on your National Insurance record. You might also qualify if you've lived or worked abroad or paid reduced-rate National Insurance contributions.

The number of qualifying years on your National Insurance record directly impacts the amount of State Pension you receive.

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