Personal Pension  

Quarter of pension savers clueless about pension size

Quarter of pension savers clueless about pension size

Despite the new pension freedoms introduced in April, over a quarter of people aged over 50 do not know how much money they have saved in order to fund their retirement, according to new research.

Retirement Advantage commissioned YouGov to survey over 1,000 UK adults during August, with figures weighted to be representative of those aged 50 plus with some form of defined contribution pension and not in retirement.

They found that those that can estimate the size of their pot, on average believe that it is worth just over £110,000.

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However, a fifth (22 per cent) stated they have saved less that £50,000 into their pension, while 12 per cent reckon their pension pot value to range between £50,000 and £100,000 in total.

Andrew Tully, pensions technical director at Retirement Advantage, suggested those that do not know the size of their savings should contact their provider to get an up to date statement.

He said: “Forewarned is forearmed; taking control and knowing what you have can help you plan to make your savings work harder for you in retirement.”

He pointed out that the recent reforms place a huge amount of responsibility on people to manage their own financial affairs, who will make choices which will impact their standard of living in retirement.

“This is not something that people can be complacent about, so if you have any doubt, seek proper independent financial advice before making any decisions.”

The research also revealed that men were more likely to know the value of their pensions, with 22 per cent saying they did not know, compared to 31 per cent of women.