Pension engagement is lowest among those nearing retirement, with 17 per cent of over-55s saying they have never reviewed their pension, according to new research from Standard Life.
This compares with 12 per cent of 18–34-year-olds and just 8 per cent of those aged 35–54. Women are also less likely to engage than men, with 14 per cent never checking their pension against 11 per cent of men.
The research indicates pension reviews remain infrequent. Just 56 per cent of adults check their pension at least once a year. In contrast, a third of consumers check cash savings on a weekly basis and almost one in five review investment accounts every seven days.
Among those who have reviewed their pension in the past year, one in five examined their projected retirement balance. But smaller groups took more active steps such as topping up contributions, adjusting investment risk, making a one-off payment or consolidating pensions.
Standard Life says simple, regular engagement can help savers stay on track and make informed decisions about their retirement.
Standard Life managing director for workplace pensions Gail Izat is urging savers to take simple steps to stay on top of their retirement savings.
Izat says the first step is to check how much is in your pot. Most providers issue an annual statement, but if one has not been received, it can be requested directly. She stresses the importance of keeping contact details up to date and adds that many schemes also allow members to log in online or through an app.
Annual statements also show an estimate of what a pension could be worth at retirement and the income it might provide. Izat highlights that this is usually based on an annuity but reminds savers that there are other options. She also points out that statements show contribution levels and members can top up at any time through regular payments or one-off lump sums.
Izat says pension calculators are another useful tool, helping savers understand if their contributions are on track to support the lifestyle they want. She adds that mobile apps make it easier to keep on top of pensions day to day whether on a commute or during a spare moment.
Izat says: “Your pension pot might not need daily attention like your bank account, but checking it at least once a year is a smart move. It helps you understand how much you’ve saved, what that could mean for your future and whether you might want to make changes like increasing contributions or reviewing your investments. Regular check-ins can also help shape the type of retirement lifestyle you’ll be able to afford.
“With one in seven people never reviewing their pensions, many risk missing opportunities to boost their savings – or even risk losing track of their pots altogether. As retirement gets closer, staying on top of your pension becomes even more critical, yet it’s worrying to see how many over 55s have never looked at their balance. The process is very simple, and if you’re unsure how to start, your pension provider or employer can guide you through it.”