» » » PENSIONS CRISIS: Millions of 'confused' workers are IGNORING their savings

PENSIONS CRISIS: Millions of 'confused' workers are IGNORING their savings

Economy:
PENSIONS CRISIS: Millions of 'confused' workers are IGNORING their savings

MILLIONS of workers are ignoring the performance of their pension pots either because of ignorance or confusion, experts have warned.

Almost half (47 per cent) of those aged 50-plus, in employment and saving regularly, admit they do not know how much money they have saved for their retirement.

One in five have never checked and the same number would not know how to find out about the details of their pots.

This lack of confidence is so worrying that a new 'pensions dashboard' system should be introduced where savers can see all their retirement and savings pots information in one place.

And the consumer group Which? is calling on Chancellor George Osborne to use next week's Budget to work with the industry and install such a system quickly.

Last year, the Financial Conduct Authority (FCA) said it will work with Mr Osborne to develop a pensions dashboard in the longer term.

But Which? wants to see the Government make a public commitment to its creation and a timeline for it to be introduced.

Which? executive director Richard Lloyd said: "Deciding on a retirement income is one of the most complex financial decisions people face, but it can be difficult to find how much money you have built up over your working life.

PENSIONS CRISIS: Millions of 'confused' workers are IGNORING their savings

PENSIONS CRISIS: Millions of 'confused' workers are IGNORING their savings

"A pensions and savings dashboard would go a long way to providing people with a complete picture of their retirement fund and, in turn, help them make the right choices.

"We are calling on the Government to use the Budget to push ahead with this idea and help people to secure better retirement income."

The survey of 600 people found 37 per cent would find it difficult to keep track of their pension pots and more than one third (34 per cent) feel doing this is time consuming.

PENSIONS CRISIS: Millions of 'confused' workers are IGNORING their savings

Six in 10 are worried about the value of their pension and less than one in three (27 per cent) trust longer-term financial products such as pensions.

Another study warned that people are still struggling to understand the 'pension freedoms' announced a year ago.

Commissioned by The People's Pension and State Street Global Advisors, the report said people are in danger of making mistakes with their retirement savings which could see them worse off in old age.

Related articles


Next generation will work LONGER and retire LATER, survey suggests
Public sector pensions' worth five times more than private sector
Probe into six insurers could mean COMPENSATION for pension savers
Views
719
08 March 2016, 16:24