Just over a fifth (21 per cent) of people don’t know how much they or their employer are contributing to their pension, research from Hargreaves Lansdown has revealed.

The survey found that women were more likely not to know, with 28 per cent unaware how much they or their employer are contributing to their pension, compared to 14 per cent of men.

According to the survey, just over one fifth (21 per cent) of savers said up to £100 per month was going into their pension, while 17 per cent said they were contributing £101-£200 per month, and11 per cent were contributing between £200-£300 per month.

Reflecting on the findings, Hargreaves Lansdown head of retirement analysis, Helen Morrissey, argued that savers knowing how much is going into a pension is key to knowing whether they are on track to meet their retirement dreams or whether they need to review their plans.

“The amount we put into our pensions has an enormous impact on what we get out of them at retirement and yet one fifth of us are clueless about our pension contributions," she continued.

"Seeing a shortfall can prompt us to review our budgets to see if we can afford to pay in more.

"If your employer offers a matching contribution - where they boost their contribution if you do - could be a huge extra boost, leaving you looking at a much more comfortable standard of living in retirement.

"Auto-enrolment has done a great job in getting more people saving for retirement but more needs to be done to help people to engage more and increase their contributions beyond standard minimums wherever possible."

For instance, Morrissey revealed that, according to the HL Pension Calculator, a 25-year-old earning £30,000 per year and contributing 8 per cent could increase their pension from £168,000 by the time they retire at age 68 to £210,000 if they pay in an extra £50 per month.

"Not knowing how much is going into your pension also risks people being unaware of the big impact employer contributions and pensions tax relief can make to your retirement planning," Morrissey added.

"It’s essentially free money and it’s best to make the most of it where possible. Assessing your pension contributions at regular intervals such as when you get a pay rise, or a new job can be a good approach. It’s extra money that you haven’t got used to spending yet so it could be more easily redirected into a pension.”

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