Three quarters of UK adults are unaware of how much they have in pension savings, particularly those approaching retirement with multiple pots, new research from Standard Life has revealed.
According to Standard Life’s Retirement Voice study, those aged between 45-64 were the most likely not to be able to put a figure on their pension savings (79%).
The research also highlighted that women are less likely to know what they’ve saved than men, with 81% unsure, compared to 68% of men. Women were also more likely to estimate a lower amount of income needed for a minimum standard of retirement living than men, with women citing £22,428 versus £32,617 for men.
Standard Life said personal income was also a big factor in determining how much people want to save by retirement age. Those with an income of less than £30,000 want to save £139,428, while those earning between £40,000 and £49,999 want to save £309,755. For those earning over £50,000, this figure more than doubled to £821,880.
Dean Butler, managing director for customer at Standard Life, said: “Given the increased responsibility individuals now hold for their own pension savings, it’s worrying that the majority can’t estimate how much they’ve got in their pot – particularly those who are approaching or even in retirement now. Interestingly, younger generations are more likely to know how much they’ve saved so far.”
Butler said younger generations may be more aware of their savings because they are at the start of their working lives and are likely to have less pots to keep track of. The research showed 65% of those aged between 18 -24 were unsure of the value of their pension pot.
Butler continued: “Despite its huge success, auto-enrolment along with the fact UK workers tend to change jobs more regularly now has meant many workers further into their careers have multiple small pots – younger workers, in most cases, won’t have this issue. They might also be more used to a world in which long-term saving is entirely down to them, unlike older workers, it’s all they’ve ever known.”
Butler said the gender disparity “seems to echo” the fact that women are likely to earn less throughout their lifetime as a result of caring responsibilities and therefore save less for retirement.
He added: “It seems likely that this has caused women to engage less with their pension pots, leading to a lack of knowledge around how much they’ve saved.”
