More than three-quarters (77 per cent) of working adults in the UK do not know how much the state pension is, research from LV= has revealed.

The research, the LV= Wealth and Wellbeing Research Programme found that as many as 25 million working adults could be unaware of the value of the state pension.

LV=’s research additionally found that almost a quarter (23 per cent) of working adults did not know how much they were paying into a pension and an additional 14 per cent said they were not paying into a pension at all.

The research also indicated that the cost-of-living crisis may be taking its toll on pension contributions, as it revealed that 13 per cent of working adults decreased their pension contributions in the past three months, an increase from 7 per cent of working adults who said they decreased their pension contributions in September 2021.

LV= additionally suggested in their research that withdrawing money from a pension is also a problem for many people who do not understand how to ensure their pension fund lasts the rest of their life, pointing to findings such as 58 per cent of respondents saying they did not know how to ensure they don’t run out of money in retirement.

LV= managing director of protection, savings and retirement, Clive Bolton, commented: “The latest LV= Wealth and Wellbeing Research Programme highlights how pensions confuse people.

“Planning for retirement can be complex but it is important to get right. People approaching retirement need to take some time to think about what they want to do when they eventually stop work, the lifestyle they want and how much it will cost.

“There are several simple steps that people can take to increase their confidence of being able to pay for a comfortable retirement. People in work should join their company pension scheme and make the most of an employer’s contributions.

“Self-employed people should consult a financial adviser and consider setting up a private pension. It’s also a good idea to regularly monitor the size of your retirement funds, including the expected State Pension to know if you’re on track.”

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