Are pensions worth it? Google search reveals sentiment

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Are pensions worth it? Google search reveals sentiment
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Britons seeking help with their finances have asked Google 'Are pensions worth it?'.

This is according to search data analysed by The Compensation Experts, which explored the most Googled pension questions of the past year. 

In addition to more than 3,800 people asking whether pensions were worth it, nearly 6,000 people asked the search engine whether pensions were taxed, and how the tax structures work. 

The Compensation Experts said it was an easy answer: "Yes [pensions are worth it]", particularly when it comes to workplace pensions, because not only is it a tax-efficient way of preparing finances for retirement, "even better, the employer is obliged to top up your pension pot with a contribution each month". 

According to The Pensions Advisory Service, if an employer does not pay into the pension each month, the scheme's trustees are obliged to report it to the pensions regulator when contributions are 90 days late.

The most Googled question was 'are pensions taxable', with 5,760 people asking this over the course of the year. "Brits are clearly concerned about the tax implications of taking out a pension", The Compensation Experts said. 

Other questions included: 

  • Can I inherit my husband’s state pension? - 2,620 searches
  • Can you cash a pension? - 2,040 hits
  • Are private pensions safe? - 1,680 searches
  • Where to start with a pension? - 840 searches
  • How are pensions divided in divorce? - also 840 searches.

The Compensation Experts added: "With an ever-increasing amount of ways to save for retirement or diversify your portfolio, pensions can be a confusing topic.

"But if you plan on living out your retirement years comfortably, then having a pension pot is a must."