As we mark Financial Capability Week, Just Retirement reveals that 58 per cent of people have no idea how much their employer contributes to their pension and 43 per cent would battle to identify how much they contribute themselves.
New research on more than 3,000 people over the age of 21 suggests that while people value pension savings, they are not fully aware of the type of benefits they are accruing. Not only were people unsure of how much their employer contributes to their pension but 35 per cent had no idea which company or provider their company workplace pension was with.
While you might imagine that people were more aware of the provision that they had made themselves, 30 per cent would not be able to identify how many private pension pots they had – without reviewing the relevant paperwork – and 19 per cent were unsure whether their partner had a pension or not.
Stephen Lowe, group communications director at Just Retirement thinks that, because a significant proportion of people disengaged with at least some aspects of their retirement saving, it is vital that when they do reach retirement they make use of the impartial and free to uses Pension Wise service.
Lowe adds, ‘Employers contribute millions of pounds each month to employees’ pension schemes but this research suggests that while people are aware of this benefit, they don’t fully understand just how valuable it is. It is clear that in order for people to be in a position to ‘manage their money well’, they need to fully understand what, how and where they are saving for retirement.
‘Making potentially life altering decisions without receiving guidance exposes people to risks and decisions that may be irreversible. Those people using Pension Wise have said they received outstanding service.’
Further reading on pensions
