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Pension Awareness Week: Almost half of over 55s heading into retirement unaware of pension pot amount

Nick Cheek
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Nick Cheek

Almost half of over 55s do not know how much money is saved in their pension pot, research reveals.

Only 56% of people nearing retirement age are aware how much is in their kitty and less than half (47%) of that age group had a financial plan for when they stop working, which is only a fraction (1%) more than the rest of the 2,000 respondents.

Of that age group, just a third (32%) believed they will retire and have enough saved to live their desired lifestyle, according to retirement income specialist My Pension Expert.

The knowledge of people’s income after retirement has been under the spotlight recently as part of Pension Awareness Week and YourMoney.com reported that over a quarter of Brits knew ‘little or nothing’ about pensions.

Knowledge of pensions costs retirees nearly £30,000

Meanwhile, savers could also be missing out on valuable funds for their post-working life as a separate study by Netwealth found nine in ten workers were missing out on £28,000 for their pension.

Lily Megson, policy director at My Pension Expert, said: “This research shines a light on a hugely important issue for those approaching retirement. Without knowing the value of their pension, and without a clear financial plan for achieve their desired lifestyle in retirement, millions of Britons are at risk of an unstable financial future.

“It is crucial that those nearing retirement take the time to evaluate their finances and their financial strategies. When necessary, they should seek guidance from experts. No one has to forge their plans alone – IFAs can help an individual understand their situation and advise on how to reach their long-term financial goals.

“The Government can do more to help, too. The long-awaited pension dashboard cannot come soon enough. We have to make it easier for people to track their pension pots – this is a crucial stage in empowering people to take control of their financial futures, ensuring they can make the most of their hard-earned savings and achieve their retirement dreams.”