One-quarter of defined contribution pension members doubt their ability to retire

One-quarter of defined contribution (DC) pension scheme members doubt that they will be able to retire, according to the latest research.

The research comes from AON’s ‘Keeping on track in challenging times – DC pension and financial wellbeing employee research 2021’ report, which shows that the number of savers that believe they will never be able to retire has increased from one in seven in 2018, to one in four this year.

The report also found that 32% of respondents expect to retire after they turn 70, with 87% believing there will be a shortfall in their income based on their current situation.

Six in 10 savers want some form of flexible income from their pension while 71% have not set a goal for the amount they need to save to enjoy a comfortable retirement, with that figure increasing to 79% for those under 35.

The number of pension savers that have checked their investments in the past 12 months is also remarkably low, with just 7% stating they had checked and only 8% intending to do so this year.

Knowing where you stand with your pension is a key component of effective retirement planning, to ensure that you can set clearly defined goals.

At HWIFM, we can provide you with regular forecast reports when you take pensions advice from us, allowing you to understand how much you need to save and help you stick to your contribution plan to ensure that you can retire in confidence.

For help and advice, contact our expert team today.