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Savers fail to keep track of pensions

Savers fail to keep track of pensions

Category: Pensions

Updated: 23/12/2013
First Published: 23/12/2013

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 It is now over 6 months old so the content may be out of date.

Research by Standard Life has revealed the worrying number of working-age adults who are unaware of the value of their pension pots while some don't even know how many pots they have, which could have huge implications when it comes to planning a comfortable retirement.

The figures show that three in five (or 68%) pension holders don't know the value of their savings while just 45% know what kind of income their savings could generate in retirement, and a further 43% have multiple pension pots – some of which could even have been lost over the years.

With research from the Department for Work and Pensions finding that the average UK adult will have 11 employers over the course of their working life, it's no wonder so many pension pots are accumulated.

But, not keeping track of pensions or knowing the true value of combined savings means pension holders could miss out when they hit retirement – if they don't know how much they've got saved they won't know whether they need to save more to reach their goals or review their investment performance, and that could lead to an income shortfall in retirement.

The Government's long-term plan is to make it easier to consolidate pension pots when people move jobs, but it isn't clear when this will be implemented and nor is it clear whether the rules will include pension pots already accumulated.

In the meantime, it's important to keep an eye on things. There are various pension tracing services that can be used to relocate lost pensions and there are always opportunities to review current pension performance, offering savers the chance to potentially change funds and ensure they can set realistic goals for the future.

It's particularly important given that the state pension age is set to rise earlier than expected, so being on top of things now means savers can plan for a comfortable retirement.

What next?

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