32% of workers in the UK say they have no idea what they have saved and a further 37% say they only have a vague idea, according to research from OneFamily.
This is despite the number of British workers enrolled in a pension being at a record high, with auto enrolment schemes playing a major part.
There is also a significant number of workers who have no idea who their savings are with. 47% of savers know who their pensions are held with, leaving many unsure or completely in the dark about who they have saved with.
OneFamily’s research shows that on average, UK adults are likely to have two pension pots, with 13% having at least three.
For those who have lost track of their pension pots, finding this missing money is no easy task. 30% would know what to do, with the majority of savers saying they would need some help (34%), and a further 21% saying they would have no idea what to do. Some savers have just given up entirely, with 7% admitting they won’t bother to track them down as it probably isn’t worth their while.
OneFamily said this is borne out in government statistics that show there is currently over £400 million in unclaimed pensions savings in the UK.
Simon Markey, OneFamily CEO, said: “It’s great that so many people are saving into pensions but the reality is that savers are not thinking about what this will add up to when they retire, resulting in many facing a significant shortfall. It’s also harder than ever for many savers to put enough away for their later years.
“This in part explains the increasing popularity of lifetime mortgages to fund later years, where we have seen new customers increase by nearly 60% in the in just the last year. At OneFamily we offer a range of lifetime mortgages to suit different customer needs.
“Regardless of your financial plans for retirement it’s important to try and keep track of any pensions savings you have, and this can be done by contacting old employers or using the government’s Pension Tracing Service which is free of charge.
“An industry-wide pensions dashboard is also under development and due to launch in 2019, which will help people to see all their pensions in one place in a convenient online platform.”
