SURVEY: 57% of readers not sure the place their pension pot is invested

Previous to October 2012, workers wanted to opt-in to contribute month-to-month to pensions. Nevertheless, due to the Pensions Act 2011, employers should now routinely enrol their staff right into a pension scheme. If you’re not sure whether or not you’re enrolled, or have been auto-enrolled in recent times, ask your office. 

If in case you have been routinely enrolled and want to opt-out, you’ll have acquired a letter out of your employer telling you you’ve been added to the scheme. In case you opt-out inside a month of your employer including you, you’re going to get again any cash you place in. 

76% of our readers stated that sure – they do pay right into a office pension, with the remaining 24% of these requested saying they don’t. 

The office participation charge throughout the UK is 79% as of April 2021 – an estimated 22.6 million workers. 

A personal pension is a plan people can select to contribute to themselves, which can be paid to them once they retire. It’s completely different from the state pension, as there is no such thing as a authorities involvement. It is usually completely different to a office pension, as your employer just isn’t matching your contributions. 

It’s a much less common possibility however could also be good for many who are self-employed. In response to our survey, simply 21% of respondents stated that they had a personal pension.  

74% of those that answered stated they didn’t pay into a personal pension, and the remaining 5% stated they had been not sure in the event that they did or not.  

The non-public pensions statistics commentary from 2022 reveals that from 2019 to 2020, roughly 9.5 million individuals paid into a personal pension. This fell to only 6.8 million from 2020 to 2021 – maybe the results of components such because the Covid-19 pandemic, lockdowns and the earnings uncertainty that got here with this. 

This query maybe had probably the most break up of outcomes. Of the 35% of people that responded ‘sure’ – 14% of these stated they selected themselves the place their pension is invested. The remaining 21% stated that though they know what their pension is invested in, they didn’t select it themselves. 

8% of respondents replied that they didn’t know a pension is invested. The remaining 57% responded ‘no clue’, suggesting they don’t know what their pension is invested in. 

In an outlined contribution pension, you construct a pot for retirement primarily based on how a lot you and your employer pay in. Your cash is normally invested in a single or many funds, to assist it develop over time. You possibly can select the extent of danger related to these funds and the place your cash is invested. 

Pension suppliers are organisations that present pension preparations for pension schemes. This isn’t for state pensions – that are paid by the federal government. Office pensions are arrange by employers and run by pension suppliers with specialist pensions consultants. 

In our survey, nearly two-thirds (64%) of respondents stated they do know who their pension supplier is, with the remaining 36% answering that they’re not sure. 

If you’re not sure of who your pension supplier is, ask your employer. You may additionally have the title of your pension supplier in your payslip. Look via any work-related paperwork you will have acquired, as it could even be on there. 

If you’re not sure about your earlier pension suppliers, there are lots of methods to search out them, in addition to earlier pension pots. 

Though you don’t have to know the precise quantity in your pension pot and examine always, it could be a good suggestion to have a imprecise information of how a lot is in there. This may also help you intend for retirement and work out how a lot it’s worthwhile to attain your objectives. It’s possible you’ll realise it’s worthwhile to enhance your contributions going ahead or discover they’re excellent. 

‘By no means’ was the commonest response to this query. Nevertheless, 35% advised they’ve a imprecise thought, however aren’t utterly positive of the quantity of their pot. The remaining 24% of respondents stated they examine typically and know precisely how a lot is of their pension. 

If you’re not sure methods to examine your pension quantity, contact your supplier straight, or get assist out of your employer.  

It’s not unusual for individuals to not know the place all their pension pots are. Transferring home and altering jobs can lead to individuals forgetting to replace their particulars or overlook about earlier suppliers. 

15% of respondents said they know the place their pension pots are resulting from consolidating them. Pension consolidation is once you mix all of your pension pots into one. 

62% of respondents advised they know the place their pension pots are, however they’re separate.  

Nearly 1 / 4 (23%) stated they don’t know the place their pension pots are. Pension suppliers akin to PensionBee supply helpful instruments that will help you discover misplaced pensions and consolidate your pots, so you possibly can have them in a single place. 

Having an thought of the place your pension pots are – consolidated or not – helps you intend for retirement, and having a normal thought of whether or not you’re on observe or not is crucial to making sure a cushty life once you end work.