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Ignorance Could Be Costing Millions in Income

Moneymagpie Team 16th Nov 2020 4 Comments

Reading Time: 3 minutes

More than three quarters (78%) of UK adults don’t know exactly what they’ll get from their pension when they retire; not only that, but more than half (52%) have no idea how many pension pots they have and could be missing out on retirement riches, according to a new UK-wide survey by MoneyMagpie and PensionBee.

The survey results come at a time the two money-savvy businesses joined together to create a completely free pension guide eBook.

In addition, the survey reveals nearly half of U.K. adults (45%) say they will be relying on a state pension for their retirement.

Other revelations from the survey are:-

People in Edinburgh were most likely to want to put their money elsewhere (39%)
Whereas those in Bristol and Leeds were most likely to want to put their money into a pension (46% each)
24% of people (a quarter) have no idea what they’ll be getting from their pension when they retire
Women are less likely to have any idea of what they’ll get when they retire (31%) than men (19%)
Also, 25-34 year olds are the ones most unable/unwilling to put money into a pension and would rather have the money to hand – more so than their 18-24 year old counterparts.

Jasmine Birtles, money expert and founder of MoneyMagpie.com says:

“Our survey shows that in the UK we need more help to get on top of our retirement savings and make sure we have enough money to fund our golden years. Pensions and investments can seem confusing but they really don’t have to be and we show in our Guide how to build up retirement wealth, step-by-step, even if you’re on a low income. I’m really sorry to see that nearly half of us are planning on relying on the State Pension to keep us going later on as that only covers the basics. I’d like everyone to have enough money to really enjoy themselves and have the freedom to stop working if they want to. Just putting a little more into pensions and investments each month can make all the difference.”

Romi Savova, Chief Executive of PensionBee, says:

“People move jobs more than ever, so most of us will end up with multiple pensions from previous jobs. The Department for Work and Pensions estimates that the average worker will have 11 jobs in their career, which could mean up to 11 pensions, so it’s crucial not to lose track of your hard-earned savings.

It’s a good habit to consolidate your old workplace pension into your personal pension each time you change jobs so you’ll only ever have one or two pensions to manage. This will give you greater visibility of how your investments are performing and, crucially, what you could expect to receive in retirement. From there you’ll know if you’re on track for a comfortable retirement or if you’ll need to increase your contributions in order to reach your long-term goals.”

What your FREE Pension EBook contains:

Why we all need a personal pension
Why we can’t rely on the state pension and having our own personal pension plan and investments is key
Getting started early by setting up pensions for babies, children and students
Setting up personal pension plans and investments; whether you’re new in a job; have a work place pension or you’re self-employed
Pensions advice for over-50s, 60’s and decades beyond, including consolidating your pensions and a checklist for what to do when you’re approaching retirement
Advice on tricky areas like divorce and pensions
Lots of websites to go to for genuinely free advice and support

Download the FREE in-depth (it’s 31 pages!) Ultimate Personal Pension Guide here.