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Almost half of Britons neglect pension review

Almost half of Britons neglect pension review

Category: Pensions

Updated: 01/09/2010
First Published: 01/09/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Almost half of working Britons have never reviewed their pension plans, new figures have revealed.

This adds further concern to the state of the country's retirement plans and comes on the back of revelations from Moneyfacts.co.uk that annuity rates have fallen to an all time low.

The research from Baring Asset Management shows that almost 17 million working people in Britain have never reviewed their pension plans, while just one in five (21%) had done so in the last 12 months.

Just over one in ten (12%) could not be sure of when they last reviewed their situation.

However, even many of those who had decided to take a look at their options had not made any significant changes.

In fact, 38% (almost seven million people) went with the default option, with 19% of these saying that the explanation they received for how the funds would be invested was poor or was not explained at all.

Worryingly, 33% of those who had reviewed the plan could not say whether or not they had chosen the default option for their pension contributions.

"The fact that individuals seem to continue to take little or no interest in financially planning for their retirement is of real concern," said Barings' chief executive officer, Marino Valensise.

"The industry needs to improve the way in which pension advice is given so that people better understand the levels of risk and return they can expect from their portfolios."

If you have not reviewed your pension plan for some time, inform your employer that you would like a meeting with your provider, as your pot may not be in the most suitable fund.

If you are nearing your retirement, it might also be worth researching the type of annuity you might want to invest in.

Find the best annuity for you - Compare annuities

If you can't find exactly what you're looking for there, we've also recently partnered up with Premier Retirement Services, giving you access to their online annuity planner service.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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