Financial literacy has been highlighted as a problem in the UK and data shows Brits’ pension knowledge, in particular, may be an area in need of improvement.
The UK government advice body Money and Pensions Service (Maps) surveyed over 2,000 UK adults and found 57% do not know they can access their pension early when retiring early due to ill health.
It also found 56% did not know they can contribute to their pension while on parental leave.
Women (61%) were less likely to know they can keep topping up their pension while on parental leave than men (51%).
Auto enrolment
But the picture is more positive when it comes to knowledge of automatic enrolment.
Almost eight-in-10 (78%) know that they can start saving into a pension as soon as they start working, whatever their age.
Also, 65% know that auto enrolment doesn’t guarantee that they are saving enough for retirement.
Unaware
Caroline Siarkiewicz, acting chief executive at Maps, said: “It’s clear that many people are unaware of their options when it comes to important events in their lives that can impact their pensions such as becoming a parent or starting their own business.
“Women in particular have many important financial decisions to make when transitioning into parenthood, but our findings suggest they are less likely to be aware of their pension options.
“It is positive to see that people have an understanding of how automatic enrolment works.
“However, our findings suggest that many might be missing out on important information when making decisions affecting their pension.”
