Less than half (44%) of respondents consider themselves to be somewhat knowledgeable about retirement savings and financial matters, according to research by State Street Global Advisors.
Its 2015 SSGA Global Monitor study, which is based on responses from 3,500 staff in the US, UK, Australia and Ireland, also found that 30% of respondents feel they have no knowledge at all about finances and retirement savings.
The survey also found:
- 43% of the 1,004 UK respondents that are defined contribution (DC) plan members feel confident they will meet their retirement goals. This compares to 24% in 2013 and 12% in 2012.
- 54% of UK respondents rate themselves as satisfied with their retirement investments.
- Under half (47%) of UK respondents that are DC pension scheme members feel they have enough information from their employer or provider to make an informed decision about their retirement savings. This compares to 55% in the US and 35% in Ireland.
- Just 53% of UK respondents understand their investments, compared with 62% in the US and 35% in Ireland.
- 52% of UK respondents that are part of a DC pension scheme are more likely to choose the default investment option compared with 36% in the USA and 50% in Ireland.
Nigel Aston, managing director and head of European defined contribution at State Street Global Advisors, said: “We are encouraged to see that confidence in pension schemes is rising in the UK in line with a wider global trend. A stronger economy is a key factor here, although events such as those seen in recent weeks undoubtedly have some impact.
“We also believe confidence is a result of other factors including the introduction of auto-enrolment and pensions freedoms. While financial knowledge remains low, our previous research has shown that the majority of pension savers do not want to become investment experts. Instead they are seeking reassurance from their employer and trustees that their workplace pension savings are expertly managed on their behalf.”
