New research f r o m Prudential shows that nearly a third (30%) of Britain’s 8.8 million active occupational pension scheme members pay no attention to how their retirement savings are invested and 29% – more than 2.5 million scheme members – have never reviewed how their chosen pension fund is performing.
The pension provider’s study also shows that 48% of workers aged 25+ have their money invested in the ‘default’ fund of their company pension scheme.
Pension savers are failing to take an active role in managing their assets to produce the best possible retirement income. Around 29% admit they have never reviewed the progress of their selected pension funds.
Prudential warns that workers who do not regularly review the progress of their pension fund to deliver asset growth, or simply select the default fund offered by their employer without studying any other options available to them or seeking advice, could then risk limiting the value of their pension pot at retirement.
Andy Brown, director of investment funds at Prudential, said: “It’s worrying that so many people who pay into a company pension scheme appear to be in this state of inertia and aren’t taking an active role in the management of their pension savings.
“You routinely check your savings, utilities, insurance cover, mobile phone contract and broadband arrangements to make sure you’re getting the best f r o m them, and checking the performance of your pension should be no different.”
Prudential urges workers who have not reviewed their pension investments, especially during the stock market turbulence of the past two years, to review them now as a priority to ensure they are correctly positioned to take advantage of any market upturn.
Many pension scheme members are doing virtually nothing to ensure their pension funds are invested in the best place to maximise growth and maintain the right balance to protect fund values in the last few years before retirement.
When it comes to paying more money into company pension schemes, Prudential’s research found that 37% of people with a defined contribution pension have either made Additional Voluntary Contributions to their pension fund or increased the amount they pay in.
Via EPR Network
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