More than half of workers ignorant of pension pot size

More than half of workers (54%) are ignorant about the size of their pension pots, according to a major survey by pensions industry trade body the PLSA. Women were most likely (60%) to say that they did not know the size of their retirement pot (or pots) than men (49%). Overall 56% of respondents said they were concerned about how much they had saved for their post-work lives. The PLSA said its research of 2,000 pension savers carried out in January revealed the concerns of savers about their pension contributions and the ‘knowledge gap’ about their own pension savings. Younger workers aged 18-34 (54%) and 35-54 (57%) were more likely than older workers to say they did not know the size of their pension pots. However ignorance was also widespread among older workers. Of those aged 55+ almost half (48%) said that they did not know the amounts they had saved. On the positive side, four fifths (80%) of respondents believed they knew the size of their pot within the nearest £25,000 with only 20% saying they would not know the size of their pot within the same amount. The Pensions and Lifetime Savings Association survey found that 41% of savers questioned felt that they should be saving more for their retirement years. Just under a third (29%) did not feel they needed to be saving more and the remaining 30% were either unsure or did not know either way. When asked if they were worried whether they were saving enough for retirement, 56% of respondents said they were concerned about how much they had for their post-work lives. Nigel Peaple, director policy & research, PLSA, said: “It’s clear that savers are still unsure about exactly what their pensions are worth and what this will translate to in terms of real income in their retirement years. “Through the publication of our Retirement Living Standards last year – as well as the introduction of the Pensions Dashboard when it’s launched – we believe that savers will have a clear understanding of their financial health and be in a better position to picture their futures.” The PLSA represents the pensions industry including over 1,300 pension schemes with 20m members. Members include 400 businesses which provide services and advice to UK pensions providers. • The research was conducted on behalf of the PLSA by Opinium from 17 Jan 2020 to 23 Jan 2020 with an overall sample size of 2,000 from which 983 were workers with a pension.

More than half of workers ignorant of pension pot size

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