Almost half of Britons haven't checked their pension despite COVID pandemic

May 23, 2021
Money in a pot

According to the retirement adviser, UK workers have on average saved just over £60,000 ($84,903) in their pension pots.

Planning for the future and retirement is probably one of the most important things workers can do, despite that almost half of Britons have not checked their pension pot amid the coronavirus pandemic. 

A survey of 1,281 UK adults over the age of 40 has revealed the extent of the UK’s lack of engagement when it comes to pensions. 

The research from My Pension Expert, given exclusively to Yahoo Finance UK, found almost half (46%) of Britons have not checked the amount they have in retirement savings within the previous year. 

The research also revealed that during the same time period, 78% have not undertaken a thorough review of their retirement finance strategy. 

Meanwhile, just 14% had sought help from an independent financial adviser, My Pension Expert said. 

This comes despite the coronavirus pandemic and historically low interest rates creating an unsettling economic climate for saver, with only 15% having adjusted their retirement finance strategy. 

"Neglecting one’s pension can be dangerous at the best of times. However, in the wake of the coronavirus pandemic, it can cause even more damage to our financial futures," said Andrew Megson, executive chairman of My Pension Expert.

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According to the retirement adviser, UK workers have on average saved just over £60,000 ($84,903) in their pension pots.

The findings also highlighted that despite a general lack of advice or prior engagement, 9% of savers chose to move some or all of their pension into higher-risk assets to grow their pot at a faster pace.

Megson added: "The research highlights that people don’t seem to know or care how much they have saved for retirement. This could mean that individuals may not realise they have inadequate funds until it’s too late, causing inevitable panic – and panic drives savers to make impulsive and potentially damaging financial decisions, such as placing their money in high-risk investments without proper consideration.

"However, these rash decisions can be avoided. By simply checking in on their pension pot on a regular basis, people will be able to monitor the effectiveness of their retirement strategy and seek financial advice should adjustments be required. I urge savers to take this step sooner rather than later. Doing so could make the difference between a comfortable and a strained retirement."

Watch: When should I start paying into a pension?