The figures come from research carried out by Prudential which also shows that 48 per cent of workers aged 25 or older have their money invested in the default fund of their company pension scheme. Around 29 per cent admit they have never reviewed the progress of their selected pension funds.
Prudential warns that workers who do not regularly review the progress of their pension fund to deliver asset growth, or simply select the default fund offered by their employer without studying any other options available to them or seeking advice, could then risk limiting the value of their pension pot at retirement.
Only 20 per cent of defined contribution pension scheme members say they took an active role in selecting the funds in which their pension is invested from a range of funds offered by their workplace pension scheme. A further 37 per cent say they have never taken any other action with their pension fund such as seeking independent financial advice, talking to their employer or making additional voluntary contributions.
Just 13 per cent of defined contribution scheme members surveyed said they had seen an independent financial adviser to discuss fund choice and review pension progress while 17 per cent have either taken a pension contribution holiday or stopped paying in completely.
Andy Brown director of investment funds at Prudential, says: “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.”
