The vast majority of people have little idea how much money they have saved to pay for retirement, new research from Moneyfarm has revealed.
It comes amid growing concern from retirement experts that large swathes of UK adults are heading into retirement unprepared for the future.
Moneyfarm said 79% of Brits have little to no idea how much money they have saved for their retirement, while almost three in 10 (27%) do not know who their pension provider is.
More than a third (34%) admitted they have a pension plan “somewhere” which they have lost track of or have lost the details to.
Carina Chambers, financial expert at Moneyfarm, said: “The research shows that we’re sleepwalking into a retirement crisis with too many people thinking their pensions will magically sort themselves out. Losing track of your pension pots or not knowing how much you’ve saved can have a huge impact on your future financial security.”
Despite not keeping track of their pensions, the average Brit hopes to retire at 62 years-old with a comfortable retirement pot providing a salary of nearly £30,000 a year. More than seven in 10 (73%) have no clue what the state pension is worth each month.
The study also found that nearly half (45%) of adults say they have lost track of their savings, investments and bank accounts, while 49% have lost track of company pension pots for jobs they have had in the past.
Despite the study finding that 61% of Brits pay money into a pension every month, with the average Brit making a £258 monthly payment, Moneyfarm said there continues to be a lack of awareness around retirement saving.
Nearly nine in 10 (87%) Brits agree pensions are too confusing and 68% admit they do not understand the different types of retirement plans available. According to the study, the most confusing things about retirement plans was how to claim your pension (26%), what tax you should and shouldn’t pay (30%), and the different types of pensions out there (44%).
More than three quarters (76%) have never had a professional pensions expert explain their options to them and 58% say they stick their head in the sand when it comes to saving for the future. As a result, 52% of those polled do not believe they would have enough money to retire.
Chambers added: “Planning for retirement shouldn’t be overwhelming or confusing, and by starting early and reviewing regularly, you can take small, manageable steps now to shape your financial future. This could be things like consolidating old workplace pensions, checking funds and fees, and using pension calculators, so you can check you’re on the right path toward the retirement you deserve.”
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