New research has found that more than 60 per cent of people aged over 45 who are not yet retired pay little or no attention to their pension, which could lead to more than 10 million pension pots being left largely unmonitored across the UK.
According to a survey by Aviva, those who are further away from retirement are most likely to spend no time reviewing their pension, although a quarter of people retiring within the next two years still fail to spend any time doing so.
Meanwhile, half the people polled said they do nothing about the routine information they receive about their pension, such as statements, including 12 per cent who do not even read them. This makes it hardly surprising that only 7 per cent discuss their pension with a financial adviser.
The results also seemed to vary regionally, with one in five savers in Scotland saying they do not read the pension information they receive, making the area the most likely for people to ignore pension updates. Meanwhile, Yorkshire and Humberside came out as the ‘top’ region in England for people not to read their pensions information.
According to Aviva, the main reasons for ignoring annual statements were that people said they do not know how to manage their pensions, or that the pensions were so small that they did not think they were worth bothering with. Several people were also putting off looking at their statements until they were ready to retire.
Meanwhile, among those savers with more than one pension, just over a quarter said they manage them all very closely while more than a third ignore their secondary pots completely. Only 14 per cent of those surveyed have consolidated their pension pots or intend to do so in the future.
Recent changes have meant that for many people pensions are the best place to accumulate their savings. Do you have a clear picture of the value of your pension fund or more importantly what it will provide you with when you retire ? Will your pensions and investments give you the lifestyle you’re looking for ? If you need some guidance to help to consider your retirement plans then please get in touch.