14th September 2015
Despite the introduction of the new pension freedoms in April, more than a quarter of people aged 50 and over have no idea how much money they have saved in their nest-egg, according to new research from Retirement Advantage.
In March 2014 George Osborne announced an unprecedented liberalisation in the way people can spend their accumulated pension savings. Yet, 18 months on from the one of the most radical overhauls of pension policy in a generation, one-in-four, at 26% people aged over 50 still do not know the value of their accumulated pension savings found the retirement specialist’s study.
Those that can estimate on average believe that they have a pension pot worth just over £110,000. However, a fifth at 22% state that they have saved less that £50,000 into their pension while 12% reckon their pension pot value to range between £50,000 and £100,000 in total.
Andrew Tully, at Retirement Advantage commented: “We’d recommend that if you don’t know the size of your pension pot, you should speak to your pension provider and get a statement. Forewarned is forearmed. Taking control and knowing what you have can help you plan to make your savings work harder for you in retirement.
“The new pension freedoms place a huge amount of responsibility on people to manage their own financial affairs, who will make choices which will impact their standard of living in retirement. This is not something that people can be complacent about, so if you have any doubt, seek proper independent financial advice before making any decisions.”
The research also revealed men were more likely to know the value of their pensions, with 22% saying they didn’t know compared to 31% of women.