Yet another survey has revealed what has become clear for some time now: only a minority of people saving for a pension in the UK are fully clued up on how much they have saved and how much they will need to retire comfortably.
According to new research from digital pension provider Penfold, some 54 per cent of the 2000 people surveyed having three or more pensions rate keeping track of how much money as a challenge, with 58 per cent saying they have no idea how much was in their pension pot.
Some two-thirds (65 percent) said they felt confused or stressed at how they would locate their pension pots when they approach retirement, and less than a quarter (24 percent of over 55s) felt confident about doing so.
When it comes to knowing how much will be needed to retire comfortably, almost half (46 percent) of over 55s had no idea how much they would need to comfortably retire.
Pete Hykin, co-founder of Penfold, said: “Our research has shown that people are still feeling in the dark about their retirement. This is probably a legacy of the days when you had to make a phone call or wait weeks for a letter to find out anything about your pension.
“With there no longer being ‘a job for life’ and the introduction of the ‘auto enrolment scheme’ many people now have multiple pension pots. This can make it tricky to keep track of where all your pensions are and how much is in each account. We believe it should be easy to see how much money you have in your pension pot – just like you can your bank account.
“Being able to see how much you’re saving and how far away you are from your target retirement fund really helps people to establish a regular savings habit.”
Keep ahead on your pension plans
If you’re already a RetireEasy LifePlan subscriber, you’ll know that using the programme regularly helps you keep tabs not only on how much you have saved for your retirement but also how much you’ll eventually need to retire comfortably. Remember to view your plan regularly as circumstances – such as the value of your investments or returns – can change.
