In fact, an incredible 34% of the Brits polled admitted they have a pension plan “out there somewhere” which they have completely lost track of or have lost the details to.
Despite that, the average Brit still dreams of retiring at 62 years old with a comfortable nest egg, giving them a yearly salary of nearly 30k, a fantasy that experts warn is “wildly unrealistic”.
The study also found nearly half (45%) say they have lost track of their savings, investments and bank accounts, while 49% have lost track of company pension pots for jobs they’ve had in the past.
In fact, 73% of the 2,000 adults polled by MoneyFarm, admitted they had no clue what the state pension is worth each month.
So perhaps it’s not surprising that a resounding 87% of Brits agree pensions are too confusing, with 68% admitting they don’t understand the different types of retirement plans available.
Despite the lack of knowledge, 76% have never had a professional pensions expert explain their options to them, while almost six in ten (58%) admit they stick their head in the sand when it comes to saving for their future.
Worryingly, more than half (52%) of the Brits polled said they didn’t think they would have enough money to retire.
Financial expert Carina Chambers from Moneyfarm said: "The research shows that we’re sleepwalking into a retirement crisis with too many people thinking their pensions will magically sort themselves out. Losing track of your pension pots or not knowing how much you’ve saved can have a huge impact on your future financial security.
“We believe that planning for the future should start now, not just when you’re close to retirement. Planning for retirement shouldn’t be overwhelming or confusing, and by starting early and reviewing regularly, you can take small, manageable steps now to shape your financial future. This could be things like consolidating old workplace pensions, checking funds and fees, and using pension calculators, so you can check you’re on the right path toward the retirement you deserve."
According to the study, 61% of Brits put money into a pension every month, with the average Brit having at least two pensions and making a £258 monthly payment.
According to the study, the most confusing things about retirement plans was how to claim your pension (26%), what tax you should and shouldn’t pay (30%), and the different types of pensions out there (44%).
Other financial terms which leave Brits scratching their heads were pension caps (18%), lump sum versus annuity (27%), salary sacrifice (15%) and defined benefit formulas (14%).
Carina Chambers offers her top tips on getting to frips with your pension plans
Find and combine your pensions - If you’ve changed jobs, you might have old workplace pensions you’ve forgotten about. Use a pension tracing service to track them down and consider bringing them together in one place. Consolidating your pension pots can make it cheaper and easier to see what you’ve got and to manage them.
Understand your State Pension - Check your State Pension forecast online to know what you’re entitled to and when you can claim it - it’s quick and free.
Top up when you can - Even small extra payments now can make a big difference later. Especially when you get a promotion or bonus, try to keep the percentage that goes into your pension the same, so it grows alongside your salary increases. Think of it as paying your future self.
Know your pension type - Learn the basics of defined benefit vs. defined contribution pensions and what they mean for your retirement income.
Seek professional help - If pensions feel confusing, you’re not alone. Speaking to a qualified pension expert or using a digital service can make things much clearer.
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