UK - More than eight in ten employees or 80% of those with workplace pension schemes do not even know the level of funding required to support them in retirement, a JPMorgan Asset Management (JPMAM) report has found.
The survey of around 800 respondents identified a high level of pensions ignorance, with almost a quarter (24%) reporting they did not know whether they held a defined benefit or defined contribution scheme.
Over half of DC scheme members admitted they never reviewed their investment choices or contribution levels, while a third (32%) of the respondents admitted to having no idea of the link between the size of a DC pension fund at retirement and the level of income this could be converted into.
Of those who were aware they held a DC scheme, one in five admitted they had never reviewed the choice of investments or level of contribution into their pension.
Karen Roberton, head of DC investment services at JPMAM, said the problem was exacerbated by the fact that an increasing number of organisations had shifted to money-purchase type schemes, where the onus is on the individual rather than the employer to monitor their pension fund.
“Provision of a pension in the workplace needs to be supported by proper education,” said Roberton. “Employees must be confident about how their pension works and how to meet their particular retirement needs.”
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