Public perceptions of pensions: exploring Pension Square quiz results

Pension Square, the partnership between the Department for Work & Pensions and the Daily Mirror, conducted a quiz asking about all things pensions. 12,458 people took part, and we discuss some of the findings here.

The Bad News

Alarmingly, the biggest statistic was 68% of respondents were not confident they will have enough money to retire comfortably. As less than half (49%) start thinking about saving for retirement when they start their first job, and even fewer (45%) save unexpected cash for a rainy day, it's unsurprising that most participants are uncertain about their finances in retirement.

62% of respondents live for now and don't worry about the future - which likely means there is no provision in place for when they retire. It was also found that only 45% talk to family and friends about pension options - which suggests they also aren't talking to financial professionals.

The Good News

Between 2012 and 2017 it is mandatory for employers to enrol workers into a pension scheme, which will have a marked impact on retirement funds in the future. Of the survey's respondents, 55% are currently in a workplace pension, and 58% feel they fully understand their workplace pension options.

Although only 49% think about retirement savings when they start their first job, this at least demonstrates it's on many people's minds and this is set to increase in the future with more awareness around pensions, their importance, and auto-enrolment.

Conclusion

One of the key benefits of auto-enrolment is bringing retirement to the thoughts of younger people, who all too often consider it to be something to think about as they get older.

In order to fully appreciate the importance of a retirement fund, simply think about how you would like to spend your days when you stop working - 35% of respondents would like to spend more time with loved ones. You may want to do some travelling, provide financial support to your family, or just feel comfortable with what's in the bank.

Saving is easy and provides you with options to spend your retirement how you want to - without being forced to work or worrying about not having enough money.

Call 0800 304 7288 for a friendly chat about your pension

The details provided in this article are for general information only and are in no way deemed to be financial advice. All of the material is correct as of the publication date, but could be out-of-date by the time you read the article. For our latest information and news, please see our articles section: https://www.portafina.co.uk/whats-new

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