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The Actuary The magazine of the Institute & Faculty of Actuaries

Over half of workers unsure of their pension pot size

More than half of workers in the UK don’t know the current size of their pension pots, and women are more likely to be unsure than men, new research has uncovered.

Workers unsure of pension size ©iStock
Workers unsure of pension size ©iStock

After surveying almost 1,000 workers with pensions, the Pensions and Lifetime Savings Association (PLSA) found that 54% did not know how much they had saved.

This increased to 60% among women, compared to 49% of men, while 56% of all workers were found to be concerned about how much they have put aside for retirement.

PLSA director of policy and research, Nigel Peaple, said: “It’s clear that savers are still unsure about exactly what their pensions are worth and what this will translate to in terms of real income in retirement years.”

The survey also found that 57% of workers aged 35-54 do not know the current size of their pension pots, compared with 48% aged over 55, and 54% aged 18-34.

Just under a third of workers said that they don’t need to save more for retirement, while 41% of respondents said the opposite, and 30% were unsure.

Meanwhile, separate research from the Pensions Regulator (TPR) has found that nine in 10 workers are now saving into large master trusts following greater scheme consolidation.

Its annual DC Trust report shows that 16 million people have saved £35.8bn into master trusts, with the number of defined contribution schemes falling by 12% since last year.

The regulator said that master trust authorisation has created a safe and stable market place for workplace pensions thanks to its high governance requirements.

TPR also found that the number of schemes that indentify themselves as having 12 or more defined contribution members has declined by 62% since the beginning of 2010.

“Thanks to the success of automatic enrolment, the vast majority of DC members are saving into large, stable master trusts,” TPR executive director of policy, analysis and advice, David Fairs, said.

“We only want to see well-governed schemes that meet our expectations in the market place so that all savers have the best opportunity to save for a retirement they want.

“For trustees who cannot or will not fulfil their responsibilities properly, we encourage them to consider consolidation.”

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