Pensions Engagement Season is here but one in seven (14%) people have never checked their pension, according to new research from Standard Life, part of Phoenix Group, which highlights how often UK savers check the balance of their financial products or log into their accounts.
There’s evidence of even less pension engagement among women with the gender gap rising to 17% among females who are more likely to never check their pension than men (10%). Worryingly, 17% of over 55s also admit they’ve never checked their pension either, compared to 12% of 35–54-year-olds, and 10% of 18-34-year-olds.
People are more likely to check other financial products on a regular basis. 40% review their cash savings at least weekly, and 36% look at their stocks and shares ISA every seven days, while one in 10 (11%) look at their pension each week.
People are most likely to check their pension annually, with 23% doing this.
Taking action
For those who did review their pension in the last year, 27% checked their forecasted retirement balance. Fewer people topped up contributions (10%), consolidated their pensions (9%), made a one-off payment (6%) and adjusted their risk level (6%).
Gail Izat, Managing Director for Workplace Pensions at Standard Life, part of Phoenix Group said: “Paying your pension some attention is an important part of financial planning. While you don’t necessarily need to check your pension as regularly as you’d check your bank account, you should aim to review how much is in your pot, and what this could mean for your financial future, at least once a year. This will give you a better idea of how to plan, whether that’s deciding if you should increase your pension contributions or change the type of investments in your plan. It may also help you decide how long you’ll need to continue working and the type of retirement you’ll be able to afford.
“With one in seven never checking their pensions, many are missing out on the chance to maximise their pension savings but may also even be at risk of losing track of their pension pots altogether. It’s very straightforward to check what your balance is, and your pension provider or employer should be able to help you do this if you’re unsure of how to.”
Gail Izat shares tips on how to check your pension pot:
• How do I check how much is currently in my pot? “You should receive an annual statement from any workplace and personal pensions – this will be sent to you by your provider. If you don’t receive a statement, then you can ask for one. Make sure your provider has the right contact details for you so that you are able to receive relevant information.
“You can often also access your pension details online, if you’ve set up an account, or through your provider’s app.”
• How can I see what my pension pot might be worth in retirement? “Your annual statements will provide an estimate of your future pot value, and the regular retirement income your pension is on track to generate. This is based on you using your pension pot to buy a guaranteed income for life (known as an annuity), although there are other ways to access your savings.
• How do I check what I’m contributing to my pension, and can I make top-up payments? “You can check what you contribute to any personal, workplace or self-employed pensions through your pension statement. You can also make any additional payments into your pension at any time you like. To top up your private or workplace pension, you can usually make both regular contributions and one-off lump sum payments.
• Can I find out how much my current pension pot might be worth in future? If you save money into a pension plan, it’s worth knowing if your savings are on track to help you afford your ideal lifestyle after you stop working. Many providers offer pension calculators that can help you decide if your current pension payments will be enough to fund your retirement lifestyle. It can also help you see if you need to start saving more.”
“Taking a look at your pension is a great first step in planning for your long-term financial future and it can be easier to do than you think.”
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