Some positive news on pensions – research1 indicates that UK consumers are keen to take a greater role in preparing for their retirement and are improving their pension knowledge too.
A Link Group survey suggests pensions industry bodies have had some success in enhancing pensions knowledge and the importance of retirement planning. Nearly four out of five consumers ‘understand’ pensions, with 18 to 34-year-olds displaying higher levels of knowledge than other age groups. Almost six out of ten survey respondents acknowledge they should take more responsibility to guarantee they have a good retirement income.
On the hunt for that lost pension?
Other research2 highlights that large sums of money still languish in ‘lost’ pensions, with estimates suggesting over £19bn is sat in lost pension pots in the UK; likely to be the by-product of people changing jobs and not keeping track of contributions made with previous employers.
To help employees track down their lost pensions, the government runs a free pension tracing service www.gov.uk/find-pension-contact-details. If you’ve worked for various employers over the years it will be worth checking to see if you can be reunited with a lost pension. With National Pension Tracing Day at the end of October, the message is, ‘a little bit of eﬀort now – and it isn’t complicated – could be worth thousands in the future.’ The #GreatPensionTreasureHunt is on.
Experts have warned about potential pension-related problems as the cost-of-living crisis bites. There are warnings for the over-55s not to be tempted to raid their pension pots in response to the cost-of-living squeeze. The overriding concern is that if people decide to withdraw lump sums or start taking an income sooner than planned, it will leave them with less income in the future. Reducing workplace pension contributions as a knee-jerk response to the cost-of-living crisis is also a concern.