Only one in two people check how their pension investments are performing — with women significantly less likely than men to keep tabs on their retirement savings.
This research, conducted by Hargreaves Lansdown, show that only 36 per cent of women knew how their pension is performing, compared to 58 per cent of men.
There was also a differences across the age groups, with those in the youngest age bracket (18 to 34) as likely to know how their pension was performing as those in the over 55 group. However only 43 per cent of those between these ages were checking on their pension investments.
The research also looked at the reasons why many were failing to keep track of their retirement savings. For those who did not know how their pension was performing, 20 per cent blamed “not knowing what to look for”, 18 per cent said they “didn’t know they needed to check” and a further 15 per cent said they “didn’t know how to check”.
Hargreaves Lansdown head of workplace savings analysis Clare Stinton says: “More than half of people (53 per cent) don’t know how their pension investments are performing – and the picture becomes even starker when viewed through a gender lens.
“This gap in awareness [between men and women] is present across the age spectrum, and it matters, because investment performance is one of the biggest drivers of pension growth.”
Stinton points out that the gender pension gap builds over a lifetime, due to career breaks, the gender pay gap, and more women working part-time. “Understanding your pension and taking early action can narrow the gap. Supercharging contributions in your 20s and 30s, paired with checking in on how your investments are doing while you have decades ahead, can deliver powerful long-term results,” she adds.
She added that this research underlines the role of financial education in the workplace. “With so many unsure of where to begin, it’s clear we must do more to empower people to take control of their financial future.
“HL Workplace sees first-hand how the right support and information can drive action. When people get access to holistic financial education alongside their auto-enrolment pension, they’re far more likely to engage.
“People now have more control than ever over their retirement. But they need the right tools, support and confidence to make informed decisions. The FCA’s Value for Money framework is a vital step in the right direction, helping protect those sleepwalking toward retirement from underperforming schemes. The push to equip providers to offer more personalised support through the advice guidance boundary review is equally important. We need to help people join the dots between today’s decisions and tomorrow’s financial freedom.”
