March 11th, 2024, Kineree Shah
A recent YouGov Surveys: Serviced conducted among British workers sheds light on understanding of various aspects of pension plans, savings towards retirement, and where they source their information on this crucial topic.
Three in five Britons who work full-time or part-time say they understand the financial security benefits (61%), and 48% have a good grasp of the potential for growth in pension funds. However, only 42% are clear on the concept of tax relief associated with these plans. In contrast, inheritance planning within pension plans is the least understood aspect, with merely 30% of Britons indicating they have a solid understanding of it.
We also asked Britons workers how much of their current income they save for pension. In this regard, one in five adults save less than 5% of their income (22%). The majority, 38%, are saving between 5-10% of their income, with the 25-34 and 35-44 age groups being the most diligent. However, only a small fraction (6%) manage to save more than 15% of their income for retirement.
A significant proportion of workers across various age groups and genders do not save any portion of their current income for their pension. Notably, 16% of Britons fall into this category with 22% falling between the 18-24 age group. Gender differences also emerge in saving behaviors, with females (19%) being more likely than males (13%) to report not saving for their pension.
When seeking information about pensions and retirement savings, UK adults turn to various sources. Employer-provided materials are the most common (30%). Financial advisors or wealth managers are consulted by 11%, with males (12%) more likely than females (9%) to seek such professional advice. Friends or family are equally important sources of information, especially for females (17%) compared to 8% of males). Educational materials online or through Google play a significant role for 14% of adults. One in five Britons do not seek any information about pension plans (21%), with females (24%) being less proactive than males (18%) in this regard.
Our survey highlights a nuanced picture of how UK adults approach pension planning, with significant gaps in understanding and savings practices. Savings rates vary widely, with many not saving at all for retirement.
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Methodology: YouGov Surveys: Serviced provide quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on February 29, 2024, with a nationally representative sample of 2,052 adults (aged 18+ years) in Great Britain, using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, education and social grade to be representative of all adults in Great Britain (18 years or older) and reflect the latest ONS population estimates.