Hundreds of thousands of older staff are unaware of how a lot they’ve saved for retirement, prompting fears that they are going to miss out on a chance to spice up their retirement pots.
Some 41% of staff aged over 55 say they have no idea the worth of their pots in comparison with 28% common of all UK staff, in accordance with a brand new survey.
Office financial savings and pensions fintech Cushon reckons 51% of workers aged over 55 have multiple pension pot and but 86% have by no means transferred one pension pot into one other.
In the meantime 28% of staff have already misplaced monitor of not less than one pension by the age of 35.
The enterprise has referred to as on the trade and the Authorities to do extra to spice up engagement and higher assist savers as they get nearer to retirement to make sure older persons are absolutely ready.
It stated one of many key enhancements needs to be a simplification of the switch course of, together with routinely transferring individuals’s accrued pensions when employers change office pension suppliers.
Though the Authorities has proposed an answer for very small pots, there must be an strategy for all pension pots no matter dimension, Cushon stated.
Equally, embracing digitisation and transferring away from complicated jargon and paper-based paperwork may cut back the boundaries that forestall savers from consolidating pension pots. Cushon stated Authorities ought to encourage suppliers to enhance digitisation whereas pushing on with the much-delayed Pensions Dashboard.
Steve Watson, director of coverage and analysis at Cushon, stated: “It wants each authorities and suppliers to take the lead right here. For presidency, pushing by means of the delayed introduction of the Pensions Dashboard is only a first step – supporting pot consolidation by permitting automated transfers when employers change office pension suppliers can be a significant leap ahead.
“Additionally, the Authorities’s proposals on small pots, which we assist, is nice however the subject of misplaced pots isn’t just restricted to small pots, it’s a difficulty throughout the board.
“Suppliers should be embracing know-how and simplifying how savers interact with their pensions, by eradicating jargon and providing apps permitting individuals to simply handle their financial savings needs to be an trade customary.”
• Censuswide, on behalf of Cushon, surveyed 2,009 workers enrolled right into a office pension (18+) between 14 June and 16 June.