Where is your pension invested?
This worrying apathy could be costing Brits thousands and leave us all with very disappointing pension pots come retirement.
In new research conducted by Baring Asset Management, almost one in two Britons (45%) were unable to say whether they opted for the default option when they last reviewed their pension, while over a third (35%) say they did choose the default investment option.
A savvier one in five (20%) say they have chosen the fund allocations of their pension. This is the highest percentage Barings has recorded since 2008, showing some increased engagement with pension funds – yet we all need to get on board with where our pension contributions are going.
Marino Valensise, chief investment officer at Barings, said: "This research highlights a worrying apathy towards pension investment amongst Britain's population.
"Far too many people do not know how their pension has been invested and many are happy to accept the default setting which may not necessarily offer the best fit in terms of risk and reward."
Men are more likely than women to choose the fund allocations of their pension plan, according to the survey. All of us are less likely to consult a financial adviser for pensions advice than in previous years, with the number decreasing year-on-year from 40% in 2008 to 31% in 2011 – and we now to turn to friends and family for pension advice more instead.
Valensise adds: "We strongly encourage people to talk to a professional adviser to ensure they are aware of all the options available to them."