The Compensation Experts analysed Google search data to determine the most frequently Googled pension questions by Britons in 2021, and have answered all of these major pension concerns.
The top pension questions asked were ‘Are pensions taxable?’, ‘Are pensions worth it?’, ‘Can I inherit my husband’s state pension?’, ‘Pensions: can you cash them?’, ‘Are private pensions safe?’, ‘Pensions: where to start?’ and ‘How pensions are divided in divorce?’.
With 5,760 Google searches last year, the most frequently asked question was ‘Are pensions taxable?’ According to experts, your pension is considered earned income and is subject to income tax.
The second most frequently asked question was, ‘Are pensions worthwhile?’ With 3,840 Google searches per year. According to experts, contributing to a workplace pension is a tax-efficient way of preparing your finances for retirement. Your employer is required to contribute at least 3 per cent of your monthly salary to your pension fund.
With 2,620 searches, the third was ‘Can I inherit my husband’s state pension?’ According to experts, if your spouse dies, you will be eligible to inherit at least a portion of their pension plan. You must, however, have been married prior to April 6, 2016, and your partner must have reached state pension age prior to April 6, 2016, or would have reached state pension age by this date. You will not be able to inherit your partner’s pension if you remarry before reaching state pension age.
The fourth most frequently asked question was, ‘Can you cash your pensions?’ with 2,040 Google searches per year, and another 1,320 for ‘can pensions be cashed in?’ Experts say that once you reach the age of 55, you can cash in 25 per cent of your entire pension savings as a tax-free lump sum. After that, you can continue to withdraw the remaining 75 per cent.
With 1,680 yearly Google searches, the fifth most googled question was ‘Are private pensions safe?’ Fortunately, all personal pension pots are covered by the Pension Protection Fund (PPF), which covers up to 100 per cent of your payments should your employer goes bust.
‘Pensions: where to start?,’ was the sixth most googled question with 840 annual Google searches. Experts explain that if you earn more than £10,000 per year, your employer will usually automatically enrol you in a scheme.
The seventh most googled question is ‘How pensions are divided in divorce?’, with 840 Google searches each year. Experts say that you can enter into an informal spousal agreement to protect each of your pensions in the event of divorce.