UK - More than a third of workers "do not care" how much their pension will be worth on retirement, research from KPMG reveals.
The accountancy giant surveyed over 2300 working adults and found that of the 1290 who were either scheme members or had personal pensions, 39% neither knew nor cared how much their pension would be worth.
Only 15% claimed they knew exactly how much their pension would be worth.
KPMG head of pensions David Fairs said: “Increasingly, employees are being asked to contribute at a higher level for retirement and to take personal responsibility for building up an adequate retirement benefit.
“However, the lack of financial knowledge and planning over the level of assets required to provide a decent income on retirement is concerning.”
Fairs predicted that nearly half of the working population faced a poverty-stricken retirement, after the survey found that 44% of respondents did not have a pension. The proportion of people without access to a scheme or personal pension was highest among workers aged 18 to 29 at 62%.
KPMG also found 49% of those over the age of 50 do not pay into a pension other than their national insurance contributions.
“These figures, coming hot on the heels of the Bank of England’s statistics on consumer debt, are alarming,” Fairs said.
“Not only is Britain becoming a nation reliant on credit and debt, there seems to be little consideration for financial survival past working age.
“All of this points to a ‘live for today’ approach to financial planning and it is not sustainable.”
The Pension Protection Fund (PPF) has published contingency planning guidance for trustees to help them manage risk.
The trustees of the Autoenrolment.co.uk and Moore Stephens master trusts have been fined for "deficient" chair's statements after failed court action against The Pensions Regulator (TPR).
Henry Tapper shares his thoughts on how IGCs could provide value for money statements that people wanted to read