New poll highlights lack of pension knowledge and apprehension around planning for retirement
A new survey reveals that three quarters (75%) of UK pension holders feel that they lack the confidence to manage their own pension pots without professional help or advice.
The new study of 1,612 UK adults with a workplace or private pension for independent personal finance website NerdWallet also reveals a widespread poor financial planning for retirement, with 83% of pension holders saying that they do not know what pension contributions they should be making to generate the retirement income they want to live on later in life. A further 64% of respondents said that they do not even know who their pension provider is – with only 30% saying that their employer has clearly communicated how their workplace pension works.
Despite a lack of knowledge and confidence in financial planning for retirement, 80% of respondents had not sought out advice on their pension from an independent financial adviser. A further 89% also said that they are less likely to seek out professional advice for their pension than they would for other products like a mortgage or car finance. However, with the cost of living on the rise and the pandemic having caused financial uncertainty, nearly 1 in 4 (25%) said that COVID-19 has made them start to think more carefully about retirement.
The new research also shed some light on potential causes of the confusion around pensions. A quarter(25%) of those surveyed said that they found the terminology and language used by pension providers made it difficult to plan for retirement. 78% also said that their pension provider has not provided enough information to help them effectively manage their pension pot. However, nearly one third (32%) also said that an online banking-style dashboard would make pension planning feel more accessible to them.