Half of young workers unaware if they have a pension

More than half (54 per cent) of workers aged under 25 are unaware whether or not they have a workplace pension, according to research from Zippen.

The pensions consolidation service’s analysis also found that two-thirds (65 per cent) of the same age group were unable to name their current pension scheme provider.

Furthermore, 56 per cent of respondents under 25 were unaware that their pensions did not automatically transfer once they moved jobs, with 45 per cent unable to confirm how many pensions they have.

“Interestingly, combined household income appears not to have any bearing on how pension-savvy savers may be,” said Zippen co-founder and CEO, Ellie Tembras.

“We find it shocking that some 65 per cent of young workers cannot name any or can only name one of their pension providers, but even those older than 25 appear to be similarly uncertain.

“Across all age groups and sexes, only half (53 per cent) can name their providers with any certainty.”

Zippen found that the problem extended to older workers too, with those over 25-years-old confused as to how much they have saved into their schemes and had little idea how to qualify the amounts.

Tembras added: “This has ramifications for potentially millions of workers, as we believe our research might just be the tip of the iceberg.

“Perhaps most alarming is the number of younger employees - (56 per cent) - who are unaware that their pensions do not automatically transfer once they have moved jobs.

“But even those over 25 appear to be confused about the situation, in our view implying communications of workplace pensions to employees has been poor.”

The Zippen Pension Survey was carried out in August 2019 with a sample of 2,000 respondents, male and female, aged between 22 and 32.

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