More than a third (36 per cent) of defined contribution (DC) pension scheme members are taking a largely hands-off approach to retirement planning, which could leave them with up to £95,000 less in retirement, according to Standard Life.

The analysis, covering non-retired people with a DC workplace pension or a private/self-invested personal pension (SIPP), identified three pension personalities: the wingers, planners, and late bloomers.

The largest group of savers were those described by Standard Life as wingers, the least engaged category, accounting for 36 per cent of respondents.

Younger workers were the most likely to fall into this category, with 45 per cent of 18 to 34-year-olds classed as wingers.

Their hands-off approach was reflected in low levels of pension awareness, with 18 per cent saying they never reviewed their pension, while just 10 per cent knew exactly how much they had saved and 22 per cent knew how much they contributed.

Just 26 per cent of wingers said they felt on track to achieve their desired retirement.

In contrast, over a quarter (29 per cent) of pension savers, described by Standard Life as planners, took a more active role in managing their retirement savings.

In this group, 59 per cent regularly reviewed their pension, 37 per cent knew how much they had saved and 49 per cent knew how much they contributed.

More than two thirds (67 per cent) of planners said they felt on track for the retirement they want, highlighting a gap in confidence between disengaged savers and those who take a more active approach to pension planning.

Meanwhile, a quarter (25 per cent) of pension savers were described as late bloomers, people who paid less attention to retirement saving in the past but are becoming more engaged.

This group sat in the middle in terms of engagement with their retirement savings.

The analysis suggested that contribution rates can have a significant impact on retirement outcomes.

Someone earning £30,000 from age 22 and paying minimum automatic enrolment contributions throughout their working life, could build a pension pot worth around £252,000 by age 68.

By contrast, someone on the same salary who increased their own contributions from 5 per cent to 8 per cent could build a pot worth around £347,000 by age 68, £95,000 more than a saver who stuck with the minimum contributions.

The analysis also suggests there is still a benefit to increasing contributions later in life. A saver who makes minimum contributions until age 50 before raising contributions by two percentage points could accumulate around £274,000 by age 68.

Commenting on the findings, Standard Life managing director for workplace pensions Emma Furlonger, said: “Most of us can probably recognise a bit of the winger in ourselves.

"Retirement can feel a long way off and there are plenty of more immediate demands on our money, so it can be easy to leave a pension ticking away in the background without giving it much thought.

“Of course, few people fit neatly into a single pension personality, and many of us will recognise aspects of several of them at different stages of our lives.

“But understanding the habits and behaviours that influence how we engage with retirement saving can be a helpful reminder to take stock and check whether we're doing enough for our future selves.”

---