75% of workers unaware they get a new pension when starting a new job

Only a quarter (25%) of workers are aware that when they start a new job their employer will set up a new workplace pension for them and that they are solely responsible for managing previous pensions, research from Portafina found.

In addition to this, the research also discovered that one in 10 (10%) of workers do not know if they have a pension from a previous job and three-quarters (76%) claim they are unaware of the value of their pension pot.

While workplace pensions  have been a popular way for workers to save for retirement since auto-enrolment started being rolled out in 2012, workers need to keep track of all their pensions to ensure they are providing the best returns on investment. With the growing popularity of using digital technology to keep track of finances, many pension providers are starting to make it easier for consumers to keep track of all their pensions in one place, for example through apps and online dashboards. These can offer consumers a convenient way of keeping track of all their pensions, especially if they move from job to job throughout their career, as well as monitoring how much money they have saved in their pension pot. 

Those who want to check to see if they have a forgotten about pension can do so via the Government’s pension tracing service.

Commenting on the research, Jamie Smith-Thompson, managing director at Portafina, said: “Moving into the digital world is a big positive step forward for the pension industry. Initiatives like the Pensions Dashboard currently being developed by the Government will go a huge way towards helping the nation to better manage and keep on top of their pension savings.

“While it’s great that there are more online options emerging for moving or consolidating pensions, it can come with huge risk. If it feels too easy to move your pension, such as only taking a couple of clicks to complete the process, then it’s time to think twice about whether this is the right move for your hard-earned savings.

“How your pension will be invested, the fees charged, and how your new scheme compares to the old one, are all questions you should confidently know the answers to before making any decisions to jump ship from your current provider.

“The bottom line is, it’s best to seek expert help before making any final decisions. Having all your pensions in one place can be very convenient and sometimes saves on charges. But depending on the pensions that you are consolidating, if you are not careful you could end up paying more in charges, losing valuable benefits and guarantees, or seeing your investments placed in funds that are not suitable for your goals.

“A regulated financial adviser will analyse every aspect of your pensions, giving you all the facts you need to make an informed decision, unlike most combine-and-go online platforms. With something as valuable as your retirement savings, it makes sense to be absolutely sure.”