How does your pensions knowledge compare to your peers?
Between December 2022 and February 2023, over 1,500 members who are currently contributing to a defined contribution (DC) pension with TPT responded to our latest research.
We’re delighted that so many of you took the time to share your views – thank you to everyone who participated. Here’s a quick summary of some of the main findings.
Unsurprisingly, the cost-of-living crisis is having an impact on people, with over half of respondents (53%) saying their current financial situation causes them stress and almost a quarter (23%) saying they have no money left at the end of the month after day-to-day outgoings. If you’re concerned about your finances, our member website has a dedicated section providing tips to help you cope with the rising cost of living, without sacrificing your pension savings:
https://members.tpt.org.uk/news/how-to-take-care-of-your-pension-during-the-cost-of-living-crisis/
A workplace pension is a great way to save for the future, with tax relief and employer contributions being two of the main benefits. However, almost half of members (46%) were not aware they received tax relief on their contributions and 9% were not aware that their employer was also contributing to their pension pot. If you’re not sure how much is being paid into your pension each month, you can find out by logging in to your online Retirement Savings Account.
Less than half of members (40%) have told us who they would like to receive the value of their pension pot should they die before accessing it. Although not the cheeriest of subjects, this is really important – and should be kept under regular review as your circumstances change throughout life. You can add or update your ‘nominated beneficiaries’ at any time via your secure online account. Once you’ve logged in click into the ‘Changing my details with TPT’ section, then select the ‘My Beneficiaries’ button.
Our research clearly showed that people need more help understanding their pension options and the factors that can impact their ultimate retirement income. Only around a third of members say they are confident making decisions about their pension savings and retirement – with slight variations depending on the type of decision:
- 35% feel confident making decisions about saving for retirement
- 29% feel confident making decisions about how their pension is invested
- 32% feel confident making retirement decisions in the future
Two of our most recent engagement initiatives have been developed specifically to help you understand how much you might need in retirement, and how much you might therefore need to save – our 'picture your future' interactive video quiz and pension savings tool.
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