Three-in-four Brits (75%) don’t know how much they have in pension savings, according to research by Standard Life.
Standard Life’s Retirement Voice study, conducted among almost 6,000 consumers, found there is a similar lack of knowledge about pension pot amounts across age groups.
Perhaps most worryingly as many as 79% of those aged between 55 and 64, who are likely to be at the most crucial stage of retirement planning as they start to look at their options for life after work, can’t put a figure on their pension pot.
The research also highlighted that women are less likely to know what they’ve saved up than men (81% don’t have a number in mind, compared to 68% of men).
People tend to have some awareness of how much income they will need in retirement – respondents of all age groups and genders put more than the Pension and Lifetime Savings Association’s income needed for a minimum standard of living – but noticeably women estimate considerably less, £22,428 versus £32,617 ($40,457, €36,846) for men.
When it comes to how much people want to save by retirement age, income makes a big difference. Those surveyed with a personal income of less than £30,000 want to save £139,428, compared to £309,755 for those earning between £40,000 and £49,999.
There’s a massive increase for higher earners – people surveyed earning above £50,000 want to save £821,880, over £682,000 more than the lowest earners.
‘Worrying’
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. This may be because they are at the start of their working lives and are a bit more conscious of what comes in and out each month, and they are likely to have less pots to keep track of.
“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.”
“In order to plan your financial future, it’s vital to engage with your finances as early as possible. The best place to start is by checking what you currently have in your pension, and what this could equate to in retirement, and there are tools and calculators that can help with this.”
