SHOCKING GAP IN KNOWLEDGE OF PENSIONS

Pensions continue to baffle and confuse, leaving many people with huge blind spots in their knowledge around these important long-term savings’ products.

Research from the Money and Pensions Service reveals that more than half of UK adults have no idea they can contribute to their pension while on parental leave, or that they can access a pension early if in severe ill health.

Worryingly, two out of three women don’t know they can keep topping up pensions while they are on paternal leave.

More than six out of 10 people don’t know that the self-employed can benefit from tax relief on pension saving and over a third aren’t aware if their workplace pension savings would be safe if their employer went bust.

With constant tinkering around pensions and so many rules and regulations and differences in the way schemes work, no wonder so many people are bamboozled by them and could be missing out on building up a decent pot for their older age.

Caroline Siarkiewicz, Acting Chief Executive at the Money and Pensions Service, says: “It’s clear that many people are unaware of their options when it comes to important events in their lives that can impact their pensions, such as becoming a parent or starting their own business. Women in particular have many important financial decisions to make when transitioning into parenthood, but our findings suggest they are less likely to be aware of their pension options.”