A new report by PrinterLand has highlighted the fact that one in five working adults in the UK have absolutely no pension savings at all. Of those working people that have saved for retirement, only 25% know how much they are managing to save into their pension pot every month with another one in four not having any idea of how much they had already saved.
The survey, which questioned 2000 workers across the UK also revealed that the average age for starting to pay into a pension was 27 years of age. More worryingly, the survey also reveals that four out of five of the respondents had no idea how much they will need to save for a comfortable retirement, with the remaining 20% guessing that would need about £275,000. Also, it was found that 5% of the survey's respondents avoided or were unable to make any payments into their pension fund until they were into their 40s.
There are however two glimmers of hope. Firstly, the survey revealed that the younger generation does seem to be much more pension savvy than their older peers with the average younger respondent having begun paying into their pension at the age of 23. This is in stark contrast to the over 55s, most of them admitting they did not begin contributing until their 30s.
Secondly, the government are looking at expanding the auto enrolment program, as currently the self-employed, those earning under £10,000 and those people with multiple jobs each paying under £10,000 are not eligible to be auto-enrolled into a workplace pension. Speaking in December 2016, pensions minister Richard Harrington announced his 2017 review saying:
"The main focus of the review will be to ensure that automatic enrolment continues to meet the needs of individual savers. In doing this we will look at the existing coverage of the policy and consider the needs of those not currently benefiting from automatic enrolment, for example employees with multiple jobs who do not meet the criteria for automatic enrolment in any of their jobs."