Two in five older staff are unaware of their total retirement savings

unaware saved retirementTwo-fifths of older employees are unaware of how much they have saved for retirement, according to research by workplace savings and pensions fintech Cushon.

Its survey of more than 2,000 employees enrolled into a workplace pension found that older employees have less clarity over the value of their retirement pension pots, as 41% of those aged 55 and above are not sure how much they have saved, compared to almost three in 10 (28%) of all UK staff.

The research, which is detailed in Cushon’s whitepaper Fixing the problem of multiple pension pots also found that nearly one-third (28%) have already lost track of at least one pension by the age of 35.

With employees aged over 55 having worked an average of six jobs in their careers, they will have accumulated savings in several pension pots, with 51% possessing more than one pension pot.

However, 86% of this age group have never transferred one pension pot into another. More than one-third (35%) of those who have transferred their pension into another pot said it was easy to do, 34% said it was quick and 30% would do it again.

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Steve Watson, director of policy and research at Cushon, said: “Millions of older employees are sleepwalking their way into retirement with no idea of whether they’ll be able to afford the lifestyle they’ve spent decades working towards. Some of these savers will only be a few of years away from retirement, and with many juggling multiple pots, they not only risk losing track of them but make it harder for them to know if they have enough saved.

“Pushing through the delayed introduction of the pensions dashboard is just a first step, supporting pot consolidation by allowing automatic transfers when employers change workplace pension providers would be a major leap forward. Providers need to be embracing technology and simplifying how savers engage with their pensions removing jargon and offering apps allowing people to easily manage their savings.”