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Millions of employees showing pensions apathy

Millions of employees showing pensions apathy

Category: Pensions

Updated: 24/08/2009
First Published: 24/08/2009

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 It is now over 6 months old so the content may be out of date.
Millions of UK employees pay no attention to how their retirement savings are invested or check the performance of their chosen pension fund, new figures show.

Almost a third of the UK's 8.8 million employees with defined contribution pensions are guilty of showing such apathy, research from Prudential has found.

The figures also revealed that almost half (48 per cent) of workers aged 25 and over have their money invested in the default fund of their company pension scheme.

Many workers with defined contribution schemes are doing little or nothing to ensure they receive the best retirement income possible. Almost three in ten (29 per cent) admitted to having never reviewed the progress of their selected fund.

Employees have been warned that by not taking a hands on approach with their pension schemes, such as not reviewing their options or selecting default funds, they run a real risk of limiting the value of the pension pot when they retire.

"It's worrying that so many people who pay into a company pension scheme appear to be in this state of inertia and aren't taking an active role in the management of their pension savings," said Andy Brown, director of investment funds at Prudential.

"You routinely check your savings, utilities, insurance cover, mobile phone contract and broadband arrangements to make sure you're getting the best from them, and checking the performance of your pension should be no different."

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