Nearly 40 per cent of the UK’s non-retired over-60s population are unaware of the value of their own pension, according to new research conducted by Sanlam.
In addition, a further 40 per cent of this group are “unprepared” for looming retirement, the study found, after taking the views of 1,000 non-retired UK residents aged 60 and above.
Furthermore, nearly a third of the sample were not aware of the pension freedoms, which came into effect on 5 April 2015.
The findings form part of the financial services group’s Which Way Forward? report which suggested that fixed-age retirement had become an outdated concept and would no longer be possible for the majority of the current working generation.
Fewer than 2 per cent of the sample anticipated retiring before the age of 61 and around 30 per cent expected to still be working at 70 and beyond.
In contrast, nearly half of respondents in a separate survey involving 1,000 UK pensioners had retired before the age of 61, and almost all had retired by 67.
David Dunn, pensions specialist and author of the report said: “The face of retirement planning is changing. Following the Government’s new pension freedoms introduced in April, people now have more choice as to how they use their pension pots. Although this gives people more flexibility to organise their finances, it also brings extra responsibility when making such important decisions.”
Mr Dunn added: “The contrast between decisions made by those who have recently retired and now those approaching retirement, clearly shows that a seminal change is taking place.”
Andrew Day, principal director of Manchester-based Depledge Strategic Wealth Management, said: “Those in our own client base are acutely aware of their retirement options, but speaking in general terms, there is a massive apathy to pensions.”