At IEP Financial we know how important pension management is, both for businesses and individuals. But unfortunately, there are some scary figures out there that suggest some people are losing out. Take the following four facts:
- 1 in 8 have at least one forgotten pension
- 3 in 5 UK adults are worried about retirement
- 2.5M pension pots are unclaimed
- £400M unclaimed pension savings
Now we imagine some might say that being worried about retirement is a given. The simple fact is that by knowing what pensions you have, where they are and how much is in them. That worry can considerably lessen that way. The following information is our help to you so that you can give yourself a bit more piece of mind and have a better handle on your pensions!
Misplaced Pension Pot
A clear majority of 77% of UK adults believe that they have misplaced one pension pot. According to government statistics, there is an estimated £400m in unclaimed pension savings. At the same time, almost three in five (59%) UK adults are concerned about not having enough money to last them into their own retirement.
Your yearly statements include an estimate of the retirement income that the pension pot may generate when you reach retirement. If you are no longer receiving these statements this may be cause for concern. There are three ways that you can track down these pensions; you can contact your former employer, the pension provider themselves or the pension tracing service.
Although tracking down a lost pension can provide a valuable increase to retirement income, those who delay could receive a smaller amount than expected. Forgotten pensions may have been subject to high charges and not invested in the best way in line with the policyholder’s requirements, subsequently making it worth less than it would have been if it was actively managed. The study also revealed the lack of engagement around pensions. More than a quarter of savers admitted that they never review their retirement savings, while almost a fifth of those with a pension said they had reviewed it less than once every five years.
Following a change in legislation introduced by the Pensions Act 2008, the number of pension savers who were unaware of their choices or had not reviewed them has risen to almost 1.5 Million People. It is also important to be aware of the potential problems of having several different pension pots with small amounts of money in each. It is likely that there will be charges taken out of these pots for their management and that there can be implications if you are no longer paying into them.
Achieve your Retirement Goals
Regardless of the stage of life you are at, it is important to receive expert and professional advice on your pension plans and requirements. For more information about how you can reach your retirement goals please contact one of our independent financial advisers.