* 35% of Britons with a pension choose default option
* One in five (20%) say they have chosen the fund allocations of their pension
Almost one in two Britons (45%) are unable to say whether they opted for the default option when they last reviewed their pension, according to new research conducted by Baring Asset Management (Barings).1 Over a third (35%) say they choose the default investment option. However, one in five (20%) say they have chosen the fund allocations of their pension, the highest percentage Barings has recorded since 2008, showing some increased engagement with pension fund allocation.
The survey also found that men are more likely than women to choose the fund allocations of their pension plan (21% and 18% respectively).
Overall, people are less likely to consult a financial adviser for advice on their pension than in previous years, with the number decreasing year-on-year from 40% in 2008 to 31% in 2011. People are now more likely than previous years to turn to friends and family for pension advice (15%). Indeed 5% of non-retired adults are inclined to go to their employer for advice, up on last year's 3%.
Marino Valensise, Chief Investment Officer at Barings, comments: "This research highlights a worrying apathy towards pension investment amongst Britain's population. Far too many people do not know how their pension has been invested and many are happy to accept the default setting which may not necessarily offer the best fit in terms of risk and reward. We strongly encourage people to talk to a professional adviser to ensure they are aware of all the options available to them."
Of those who have chosen the default option, the majority (50%) said that the advice that they had received was "good", with 18% of saying that it was "very good". This figure was highest amongst those aged over 65, with 67% feeling that the overall explanations were "good".
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