One in seven UK adults has never looked at how much is in their pension pot, while one in five over 55s admit the same.
Women were also less likely than men to check their future savings, with 17% not checking their contributions compared to 10% of men.
Younger people (18 to 34-year-olds) are, perhaps understandably, the least likely age group to find out what their pension looks like, with only 10% doing so.
The study from Standard Life found that only 23% of the 2,000 polled checked their pension annually, however four in ten said they review their cash savings at least weekly.
It comes as a recent report revealed that a quarter of workers over the age of 55 will be reliant on the state pension. And with the Government reportedly weighing up the future of the pension triple lock, workers approaching retirement are urged to check what contributions they’ve amassed.
‘Pay your pension some attention’
Gail Izat, managing director for workplace pensions at Standard Life, said: “Paying your pension some attention is an important part of financial planning. While you don’t necessarily need to check your pension as regularly as you’d check your bank account, you should aim to review how much is in your pot, and what this could mean for your financial future, at least once a year.
“This will 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. It may also help you decide how long you’ll need to continue working and the type of retirement you’ll be able to afford.
“With one in seven never checking their pensions, many are missing out on the chance to maximise their pension savings but may also even be at risk of losing track of their pension pots altogether. 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.”
Izat shared these four tips to help you check your pension pot:
1) 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.
2) 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.
3) How do I check what I’m contributing to my pension?
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.
4) Will my pension savings provide the ideal lifestyle in retirement?
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.
