Personal PensionMar 27 2015

Most Brits unaware of pension savings: survey

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Most Brits unaware of pension savings: survey

The vast majority believe that people should be aware of how much they have saved for their retirement, yet over half have no idea how much they have saved, a new survey has revealed.

According to the People’s Pension, almost 60 per cent of workers and people looking for work aged 65 and under, with pension savings, have no idea how much they have saved for their retirement.

The private sector multi-employer pension scheme commissioned YouGov to survey 1,370 adults aged 65 and under at the start of this month.

The study found that 40 per cent check their pension savings less often than once every six months, yet 76 per cent check their bank account at least once a week. A quarter of people with a pension have never checked on it.

However, an overwhelming majority (93 per cent) of those with a pension thought that people should be aware of how much they have saved for their retirement, with 77 per cent supporting the idea of a pensions dashboard, where they could see all their savings online in the same place.

Darren Philp, director of policy and market engagement at the People’s Pension, said it was worrying, but perhaps unsurprising, that a significant number of people do not know how much they have saved for their retirement.

“Some people find it difficult to keep track of their savings if they are all in one place, so you can imagine how complicated it becomes if people have more than one pot in different schemes.

“These findings create a fear that people might not be best placed to make the right choice for them with the new pensions freedoms.”

Yesterday’s publication of the Financial Conduct Authority’s retirement income market study backed calls from the pensions minister and the Work and Pensions Select Committee for an online one-stop-shop where people can see all their savings at a glance in one place.

Mr Philp said: “This is not rocket science, it works in other countries and it is time for the UK to catch up. This needs to be a priority for the next government, and the industry needs to work together to push for rapid change.”

The FCA said yesterday (26 March) that it is in discussions with government to explore the most effective and efficient way to develop a ‘pensions dashboard’, with a view to implement this over the next few years.

However, according to the People’s Pension, 23 per cent of respondents said the government should be responsible for this, 23 per cent said pension providers and 25 per cent said an independent regulator.

Most people (69 per cent) would also be interested in a website that combines a pension dashboard with information about all of their financial services products, including pensions, banking and other financial products such as mortgages and insurances.

peter.walker@ft.com