Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • October 2015
10

Finance professionals 'in the dark' about their pensions

Open-access content Thursday 29th October 2015

More than half (57%) of UK finance professionals with a private pension have no or only a “rough” idea what their pension is costing them in fees.

2

Research by investment and pension provider Nutmeg found while 13% had no idea, and 44% had a rough idea, just 43% knew how much they were being charged by pension providers.

Nick Hungerford, CEO and founder of Nutmeg, said: "People tell us pensions are complicated. They don't have to be. Pensions can be simple. But they are made to look complicated by companies who wish to justify their high fees."

Based on 502 interviews with decision makers in the finance sector, the firm said 12% of respondents did not know the value of their pension pots, and 47% knew "roughly" what their pensions should be worth upon retirement.

Hungerford said: "It's simply disturbing that even those who are professionals in financial services have no idea what they are being charged or how much their pension will be in retirement.

"This can only mean one of two things: either they get paid so much money they don't care, or they are conceding that the level of intelligence and time required to understand is so high they simply don't bother to try."

Hungerford said the research also gave a "clear and shameful sign" that older savers were "kept in the dark" about the cost of investing for retirement.

Some 17% of finance professionals over 40 knew exactly what they were paying in fees, compared with 64% of those aged between 18 and 29.

Some one in five (20%) of those aged between 40 and 49 knew the exact value of their pension pots upon retirement, compared with 59% of those aged between 18 and 29. 

Hungerford said younger savers were more likely to "intuitively select online options" which show transparency in investment fees. 

He added: "Older savers are paying more attention to new, transparent options, but this research is a worrying sign they aren't moving fast enough, and are still being ripped off by old-fashioned providers."

The firm also said women were likely to pay closer attention to their pensions than men. Almost half (47%) of women in finance knew exactly what their pensions pots should be worth at retirement, compared with 38% of men. 

In addition, 46% of female respondents and 32% of males knew exactly where their pensions were invested. Nearly half (47%) of women knew the fees of their pension, compared with 40% of men.

This article appeared in our October 2015 issue of The Actuary.
Click here to view this issue
Filed in:
10
Topics:
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Make the switch from Pensions > Life Insurance

Manchester
Excellent Salary + Bonus (study support if required)
Reference
121040

Senior Reinsurance Pricing Actuary

City of London
Up to £130,000 + Benefits + Bonus
Reference
121063

Interim - Reporting Actuary - Inside IR35 - Nearly/Newly Qualified

London
Discussed Upon Application
Reference
121059
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2021 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited, Level 5, 78 Chamber Street, London, E1 8BL. Tel: 020 7880 6200