British workers don’t understand how the State Pension works, while many struggle on even the basic aspects of how the state retirement system works, according to a new report.

The study published by the Policy Institute at King’s College London and think tank Phoenix Insight found that many people overestimated their knowledge of the State Pension, with the most common misconception being that National Insurance contributions are stored in a personal pot which is accessible at State Pension age.

Other knowledge gaps shown up by the research are the number of years of National Insurance payments needed to qualify for a full pension, eligibility criteria, the value of payments, how the State Pension differs from workplace savings and the “triple lock”.

One respondent said: “I think it’s a shame to say but I don’t know enough [about the State Pension]. And now as I’m getting older, I’m starting to read up a little bit more and I’m thinking wow…I don’t know enough.”

Another said: “I thought when you retire everyone is entitled to the pensions. I don’t know why…I thought this is what happens.”

Participants at workshops run as part of the study were largely surprised at how low the State Pension was.

Suzanne Hall, director of engagement at the Policy Institute at King’s College London, said: “Financial security is the foundation for a good retirement. Yet a lack of understanding and a number of misperceptions concerning basic elements of how the State Pension works, and who qualifies, is hindering people’s ability to prepare effectively for later life.”

She said on learning about the state pension, participants questioned how fair the system was – particularly for those unable to work because of ill health or because of caring responsibilities.

Ms Hall said: “Against this backdrop participants were keen on reforms – both to the State Pension itself but also the broader welfare system so as to ensure more people can have the quality if life in retirement they deserve.”

While those questioned were in favour of providing support to those in need and nearing retirement age, many questioned whether it would be more appropriate to reform benefits for people of working age.

The research on ‘The Future Of The State Pension’ included two deliberative workshops, each bringing together 50 members of the public in London and Birmingham. There were 10 follow-up in-depth interviews with participants from the deliberative workshops; and a roundtable event with stakeholders working in the field of pensions and longevity.