Nearly three quarters (74 per cent) of people are unaware of where their pension is invested, new research from Hargreaves Lansdown has revealed.

The research also stipulated that those who do know where there pension is invested are more likely to have better awareness of their broader pension needs and targets.

For example, while only 29 per cent of those surveyed stated they had a clear idea when they expect to retire and how much income they’ll need, this increased to 61 per cent amongst those who knew where their pension was invested.

This trend was also consistent across factors such as having confidence that they’ll be able to afford to retire and having a clear understanding of retirement options.

However the biggest difference between these subsets was in awareness of how much an individual pension pot is worth, with just 35 per cent of all respondents clear on this, compared to 80 per cent amongst those who were already aware where their pension was invested.

The survey of over 2000 people also showed that only 11 per cent of respondents knew what was meant by a ‘default fund’.

Hargreaves Lansdown senior analyst, Nathan Long, stated: “The vast majority of pension savers are invested into a one-size-fits all default fund in their company pension, despite only a handful knowing what this is. In fact, only a quarter of people know how their pension is invested.

“Those that know about their investments are more likely to have their retirement ducks in a row. They’re twice as likely to know the current value of their pensions, what options they have available to them at retirement, and how much they’ll need to retire on.

“They also have a much clearer idea of when and how they plan to stop working, and are confident that they’ll be able to afford to retire when they want.

“Default funds have to be all things to all people, so tend to be conservatively managed. Those pension members yet to hit their 40s can normally to be more adventurous in their approach and tweaking your pension to reflect this can boost your pot when you finish work.”

The firm have also outlined a ‘four point plan to investing your pension’ alongside the research.

The plan, aimed towards individual members, includes; speaking to your employer, checking what you’re invested in, working out if your investments are right for you, and setting a date to review progress.

Share Story: