New research has shone a light on the extent of pension knowledge gaps among UK adults.
A survey of more than 2,000 people* found 53% believed they are knowledgeable about pensions, but only 35% could correctly identify a defined benefit scheme and 34% understood what a defined contribution scheme is.
Additionally, 20% are unaware of their own pension type and 57% do not realise that the government contributes to pensions through tax relief.
While over half (55%) are unaware how their pension is invested, 81% of respondents haven’t altered their investment strategy, with a quarter citing it’s because they don’t know enough, or didn’t realise they could.
Almost 70% of people in the UK have between one and five pension pots, while 20% are unaware how many they actually have. Nearly a third (35%) of those who know where their pensions are, don’t know how to access them.
While only 15% have consolidated their pensions, 46% are interested in doing so but are unsure what steps to take to achieve it.
And the State Pension?
Half of UK adults don’t know how much they’ll receive from their State Pension and 32% are unaware of the age they’ll qualify**.
Over half (51%) don’t know how much the full new State Pension is – it’s currently £11,973 a year – while 52% don’t know how to find out their entitlement and 34% are unaware that National Insurance contributions determine the amount they’ll receive.
With your pension such a major part of your retirement strategy, you really can’t afford not to be on the ball. Knowledge is crucial. We can support you to make well-informed decisions – your future-self will thank you.
Contact hello@cailean.co.uk or call us on 01577 212577 to discuss your state of pension planning.
* Aviva study reveals critical knowledge gap about UK pensions (April 2025)
** State of confusion: Half of UK adults in the dark about the State Pension – Standard Life (April 2025)
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