On the go: Nine in 10 people are unsure of what pension they are entitled to or whether they are receiving any pension contributions, according to new research from financial services comparison site Money.
The study, of 2013 UK adults who are yet to retire, found that almost a quarter (24 per cent) of respondents would struggle to locate their pension pots, with 18 per cent having “no clue” how to go about it.
Thirteen per cent did not realise they were entitled to any pension payments, while four in five did not know what payments they were entitled to.
Asked how they were planning to finance their future, besides working one traditional job, savings accounts (38 per cent) and stocks and shares (15 per cent) were the most popular options, while 10 per cent said they would — or already do — work a second job to help later in life.
The study found that young people aged between 16 and 34 are putting away a higher proportion of their earnings than those aged between 35 and 54.
Young people aged 16-24 are putting away an average of 8.1 per cent and those aged 25-34 are putting away an average of 7.2 per cent, but this drops to 6.4 per cent for individuals aged 35-44.
Adults aged 45-54 put away slightly more, at 6.9 per cent, and this rises again to 8.2 per cent for those aged 55 and over.
Salman Haqqi, personal finance editor at Money.co.uk, said: “A pension is a vitally important tool for helping provide a stable income in later life. Once people retire, this often forms the majority of their income, so the nine in 10 people who were unsure about their future may want to refamiliarise themselves with the systems, as well as the location of their pension pots and log in details, to avoid any potential issues that could arise in the future.
“The basic state pension payment is £137.60 per week, with this amount rising to £179.60 for younger workers, as outlined on the government’s website. However, 25 per cent of Brits are missing out on potential further payments in the future as they have opted out from additional personal or workplace pensions,” he continued.
“It is certainly worth assessing your options to provide the right balance between having enough disposable income now, and ensuring financial security in the future.”
