One in two people don’t know how pension is performing

New research by Hargreaves Lansdown has found that one in two (47%) people know how their pension investments are performing.

Men are significantly more likely to know than women (36% compared with 58%). Whilst. one in two of those aged 18-34, and those over 55 know how their pension is doing.

Meanwhile 43% of those aged 35-54 understand how their pension investments are faring.

Clare Stinton, Head of Workplace Saving Analysis t Hargreaves Lansdown said “More than half of people (53%) don’t know how their pension investments are performing – and the picture becomes even starker when viewed through a gender lens. Just 36% of women are in the know, compared to 58% of men. This gap in awareness is present across the age spectrum, and it matters, because investment performance is one of the biggest drivers of pension growth.

“The gender pension gap doesn’t happen overnight, it builds over a lifetime, due to career breaks, the gender pay gap, and more women working part-time. Understanding your pension and taking early action can narrow the gap. Supercharging contributions in your 20s and 30s, paired with checking in on how your investments are doing while you have decades ahead, can deliver powerful long-term results. This is thanks to compounding – earning returns on your past returns – which steadily does the heavy lifting for you over time. If you’re comfortable with the level of risk, staying invested for longer gives you more time to ride out any dips and benefit from long-term growth. Put simply, the earlier you start, the more potential you can unlock.

“Only 43% of those in the sandwich years, aged 35-54, know how their pension is performing. It’s a life stage filled with competing priorities, many will be juggling careers, children, and caring responsibilities. Yes, life is busy, but carving out time to invest in you and your future is crucial. This is the prime time to take back control and make sure that when the time comes, you’re the one choosing when to retire, how to spend your time, and what kind of lifestyle you want to enjoy. Wait too long, and your options may start to narrow.

“It’s encouraging that 50% of those aged 18-34 understand how their pension is doing, just a whisker behind the 51% of those aged over 55. For those in the dark, the main barriers are not knowing where to look, or how to check investment performance, with 18% unaware they even need to. This underlines the critical role of financial education. With so many unsure of where to begin, it’s clear we must do more to empower people to take control of their financial future.”