Nearly 3 in 5 people unaware of their pension pot size

Almost three-fifths (58 per cent) of people have no idea how much is in their pension pot, according to research from Penfold, leading the firm to warn that people are “in the dark” over retirement.

The research also found that more than a third (38 per cent) of consumers have no idea how much money they need to retire on, based on recent figures which showed that the average single person would need a pension pot of £192,000 for a comfortable retirement.

Penfold said that nearly a fifth (19 per cent) of the participants were “way off the mark”, believing they would only need up to £100,000 to retire comfortably, while almost half (46 per cent) of over-55’s had no idea how much they would need to comfortably retire.

Additionally, 28 per cent of 18-24 year olds surveyed thought that they could comfortably retire with just £50,000 in their pension pot.

Two-fifths (39 per cent) of people said they were feeling concerned about not having enough money to live comfortably during their old age, while a further 8 per cent said they knew they would not have enough in their pension at retirement.

Penfold co-founder, Pete Hykin, said: “Our research has shown that people are still feeling in the dark about their retirement. This is probably a legacy of the days when you had to make a phone call or wait weeks for a letter to find out anything about your pension.

“When your information is available via your phone, accessible in a few taps as it is with the new generation of digital pension providers, there’s really no reason why pensions should be overwhelming or confusing.”

More than half (55 per cent) of consumers said they had three or more pensions and just under two-thirds (65 per cent) of respondents were confused and stressed at the prospect of tracking down their individual pension pots.

Hykin said switching jobs more frequently and the introduction of automatic enrolment meant it could be “tricky to keep track of where all your pensions are and how much is in each account”.

He added: “Over two-thirds of people are worried in some way about locating and accessing their pension pots - this is probably caused by the thought of having to search through years of paperwork to find old pension details.”

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