More than three in ten have lost track of their pension pot

New research by Moneyfram has discovered that as many as 79% of people have little to no idea how much money they have saved to pay for their retirement, while almost three in ten (27%) don’t even know who their pension provider is.

According to the study, 61% put money into a pension every month, with the average Brit having at least two pensions and making a £258 monthly payment.

34% of the people polled admitted they have a pension plan ‘out there somewhere’ which they have completely lost track of or have lost the details to. Despite that, the average person still dreams of retiring at 62 years old with a comfortable nest egg, giving them a yearly salary of nearly 30k, a fantasy that experts warn is ‘wildly unrealistic.’

The study also found nearly half (45%) say they have lost track of their savings, investments and bank accounts, while 49% have lost track of company pension pots for jobs they’ve had in the past. 73% of the 2,000 adults polled in the research admitted they had no clue what the state pension is worth each month.

87% of people agree that pensions are too confusing, with 68% admitting they don’t understand the different types of retirement plans available. Despite the lack of knowledge, 76% have never had a professional pensions expert explain their options to them, while almost six in ten (58%) admit they stick their head in the sand when it comes to saving for their future.

More than half (52%) of the people polled said they didn’t think they would have enough money to retire and that the most confusing things about retirement plans were how to claim your pension (26%), what taxes you should and shouldn’t pay (30%), and the different types of pensions out there (44%).

Other financial terms which leave people scratching their heads were pension caps (18%), lump sum versus annuity (27%), salary sacrifice (15%) and defined benefit formulas (14%).

Financial expert Carina Chambers at Moneyfarm said, “The research shows that we’re sleepwalking into a retirement crisis with too many people thinking their pensions will magically sort themselves out. Losing track of your pension pots or not knowing how much you’ve saved can have a huge impact on your future financial security.

“We believe that planning for the future should start now, not just when you’re close to retirement. Planning for retirement shouldn’t be overwhelming or confusing, and by starting early and reviewing regularly, you can take small, manageable steps now to shape your financial future. This could be things like consolidating old workplace pensions, checking funds and fees, and using pension calculators, so you can check you’re on the right path toward the retirement you deserve.”