Into the unknown? One in four people aged 55 and over risk losing out in retirement as they have never checked any of their pensions

id

• Women more likely to not check pension than men
• Lack of awareness of the need to check pensions and knowledge of how to do so are main reasons people aren’t checking
• Standard Life shares tips on when and how to check your pot

New research¹ from Standard Life, part of Phoenix Group reveals that one in four (24%) people aged 55 and over have never checked their pension, highlighting how a worrying number of people fast approaching retirement age have not engaged with their finances.

As many as one in five (19%) women admit they have never checked any of their pensions – almost double the number of men (10%). Perhaps surprisingly, younger generations are more likely to have viewed their pensions, with just 8% of 35 to 54 year olds, and 6% of 18 to 34 year olds, having never checked. Among all UK adults, 15% say they have never looked at any of their pensions.

People in the dark about their pension

Standard’s Life research also finds that many people are not checking their pension pot due to a lack of awareness and knowledge. Among those who haven’t checked their pension in the last two years or more, 23% said this is because they didn’t think they needed to, while 17% just haven’t thought about doing so. More than one in ten (12%) don’t know how to check their pension, and another 12% feel they wouldn’t understand it.

Mike Ambery, Retirement Savings Director at Standard Life comments:

“People sometimes think that pension saving is something that happens in the background, with no real need to check up on it until retirement. However, taking a look at your pension is a great first step in planning for your long-term financial future and it can be easier to do than you think. It’s very straightforward to check what your balance is, and your pension provider or employer should be able to help you do this if you’re unsure of how to. You should aim to review how much is in your pot at least once a year to give you a better idea of how to plan, whether that’s deciding if you should increase your pension contributions or change the type of investments in your plan. For those who are getting closer to retirement age, staying on top of what’s in your pot may also help you decide how long you’ll need to continue working, whether to consider a phased approach to retirement and the type of retirement you’ll be able to afford.”

More optimistically, the research shows that over half (53%) of UK adults have checked their pensions in the last year. They have most likely done this via an online portal (45%) or annual pension statement (33%).

Mike’s top tips on checking your pension pot:

• How do I check how much is currently in my pot? “You should receive an annual statement from any workplace and personal pensions – this will be sent to you by your provider. If you don’t receive a statement, then you can ask for one. Make sure your provider has the right contact details for you so that you are able to receive relevant information.
  “You can often also access your pension details online, if you’ve set up an account, or through your provider’s app.”
• How can I see what my pension pot might be worth in retirement? “Your annual statements will provide an estimate of your future pot value, and the regular retirement income your pension is on track to generate. This is based on you using your pension pot to buy a guaranteed income for life (known as an annuity), although there are other ways to access your savings.
• How do I check what I’m contributing to my pension, and can I make top-up payments? “You can check what you contribute to any personal, workplace or self-employed pensions through your pension statement. You can also make any additional payments into your pension at any time you like. To top up your private or workplace pension, you can usually make both regular contributions and one-off lump sum payments.
• Can I find out how much my current pension pot might be worth in future? If you save money into a pension plan, it’s worth knowing if your savings are on track to help you afford your ideal lifestyle after you stop working. Many providers offer pension calculators that can help you decide if your current pension payments will be enough to fund your retirement lifestyle. It can also help you see if you need to start saving more.”

ENDS
 

 

Enquiries

Notes to editors

[1] Opinium conducted research among 2,000 UK adults. Fieldwork was conducted 6th and 10th September 2024. Data has been weighted to be nationally representative.

 

About Standard Life

• Standard Life is a brand that has been trusted to look after peoples’ life savings for nearly 200 years
• Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme.
• Standard Life is part of Phoenix Group, the largest long-term savings and retirement business in the UK. We’re proud to be building on nearly 200 years of Standard Life heritage together
• Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future. We’re proud to offer a leading range of sustainable and responsible investment options.
• We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs, and plan a future they feel confident about.
• Standard Life is the proud headline sponsor of Race for Life, Cancer Research UK’s flagship fundraising event series.