Pensions  

Aviva uncovers ‘frightening’ pension saver disengagement

Aviva uncovers ‘frightening’ pension saver disengagement

More than a quarter of savers never review the state of their retirement savings, according to a survey by Aviva.

The figure for women was even higher, with 32 per cent neglecting their retirement savings completely.

The survey of close to 1,000 people also found that a fifth of those with a pension only checked its progress once every five years.

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“The lack of engagement with pensions is frightening,” Clive Bolton, Aviva UK Life’s managing director of retirement solutions, said.

“Ask most people what they earn now and they’ll have a pretty good idea, sometimes down to the penny, but most people have no idea what their pension is worth. A pension is your salary when you’re no longer working. Surely it deserves more than a glance at a statement once a year.”

Now: Pensions reported there has been hardly any engagement with its website, with the majority of interest coming from members who wanted to opt-out.

“It’s a sad fact that the second most popular search term on our website is ‘opt-out’,” said the scheme’s director of communications Amy Mankelow.

Peter Walker, chief operating officer of Smart Pensions, was more optimistic. He said efforts at member statements and other member engagement proposals had met with “very little” response, but added: “It’s going to take time. At the moment nobody’s auto-enrolment pot is very large, so it doesn’t figure very large in their thinking. But over the years it will grow, and so I would look for more engagement over time.”

james.fernyhough@ft.com