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


Isobel Lawrance

twenty fourth Apr 2023

Studying Time: 4 minutes

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

We just lately performed a reader survey on social media, wherein we requested our followers about their pensions. We requested folks about their office and personal pensions, in addition to the place their pensions are invested, and their pension suppliers. 

We performed a reader survey beforehand and located the outcomes extraordinarily fascinating. Not solely do surveys assist us perceive your ideas and emotions however assist us to know how we may help our readers. 

Here’s what we discovered on this reader survey. 


Do you pay right into a office pension? 

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

If in case you have been robotically enrolled and want to opt-out, you should have obtained a letter out of your employer telling you you’ve been added to the scheme. In the event you opt-out inside a month of your employer including you, you’ll 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 fee throughout the UK is 79% as of April 2021 – an estimated 22.6 million staff. 

You can find out more about the workplace pension scheme here. 


Do you pay into a non-public pension? 

A non-public pension is a plan people can select to contribute to themselves, which can be paid to them after they retire. It’s totally different from the state pension, as there is no such thing as a authorities involvement. Additionally it is totally different to a office pension, as your employer is just not matching your contributions. 

It’s a much less standard possibility however could also be good for individuals who are self-employed. In keeping with our survey, simply 21% of respondents stated they’d a non-public pension.  

74% of those that answered stated they didn’t pay into a non-public 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 exhibits that from 2019 to 2020, roughly 9.5 million folks paid into a non-public pension. This fell to simply 6.8 million from 2020 to 2021 – maybe the results of elements such because the Covid-19 pandemic, lockdowns and the revenue uncertainty that got here with this. 

Find out more about how much you should have saved in a pension here. 


Have you learnt what your pension is invested into? 

This query maybe had probably the most cut 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 based mostly on how a lot you and your employer pay in. Your cash is often invested in a single or many funds, to assist it develop over time. You’ll be able to select the extent of threat related to these funds and the place your cash is invested. 

Thinking about putting more money into your pension? Click here. 


Have you learnt who your pension supplier is? 

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

In case you are not sure of who your pension supplier is, ask your employer. You may additionally have the identify of your pension supplier in your payslip. Look by way of any work-related paperwork you might have obtained, as it might even be on there. 

In case you are not sure about your earlier pension suppliers, there are various methods to search out them, in addition to earlier pension pots. 

Here’s how to trace a lost pension. 


Have you learnt how a lot you at present have in your pension? 

Though you don’t must know the precise quantity in your pension pot and test continually, it might be a good suggestion to have a imprecise information of how a lot is in there. This may help you propose for retirement and work out how a lot you’ll want to attain your targets. It’s possible you’ll realise you’ll want to improve your contributions going ahead or discover they’re excellent. 

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

In case you are not sure learn how to test your pension quantity, contact your supplier instantly, or get assist out of your employer.  

How women can make the most of their pensions. 


Have you learnt the place all of your pension pots are? 

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

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

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

Virtually 1 / 4 (23%) stated they don’t know the place their pension pots are. Pension suppliers equivalent to PensionBee provide helpful instruments that will help you discover misplaced pensions and consolidate your pots, so you’ll be able to have them in a single place. 

Having an thought of the place your pension pots are – consolidated or not – helps you propose 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. 

Pensions for the self-employed explained. 


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