Three out of four people have no idea where their pension is invested, while nine out of 10 did not know what a ‘default’ fund is, according to new research.
This is despite the fact that majority of people with a workplace pension will be invested in these default funds.
The survey conducted by Hargreaves Lansdown found that those who did know about these investments were more likely to be prepared for retirement.
Hargreaves Lansdown senior analyst Nathan Long says: “Those that know about their investments are more likely to have their retirement ducks in a row. They’re twice as likely to know the current value of their pensions, what options they have available to them at retirement, and how much they’ll need to retire on.
“They also have a much clearer idea of when and how they plan to stop working, and are confident that they’ll be able to afford to retire when they want.”
For example over half of those that know where they’re invested have decided the age at which they plan to retire, compared to only a quarter overall.
Analysis by Hargreaves Lansdown shows that those engaging with pension are more likely to hit their retirement goals.
Long says: “While it’s by no means the golden ticket to a happy retirement, engaging with pensions sooner rather than later gives savers a much better shot at hitting their goals.”
