Britain is on the cusp of a pensions crisis as approximately one in seven individuals across the country have never examined their retirement savings, new research from Standard Life has found.
These findings from the firm come as Pension Engagement Season gets underway, prompting calls for greater financial vigilance.
According to polling commissioned by Standard Life, while many diligently monitor their everyday savings and investment portfolios, retirement funds remain largely ignored by a significant portion of the population.
This widespread neglect could mean countless individuals are forfeiting chances to enhance their financial security in later life, experts warn.
One in seven Britons have not looked at their pension savings
|GETTY
Perhaps most alarming is that those approaching retirement demonstrate the poorest engagement levels.
The data shows 17 per cent of individuals aged over 55 have never reviewed their retirement funds, surpassing the 12 per cent figure for those aged 18-34 and notably higher than the eight per cent recorded for 35-54 year olds.
Notably, Standard Life's research also uncovered a slight gender gap in pension engagement.
Women showed marginally lower interaction rates with their retirement savings, with 14% reporting they had never examined their pension compared to 11 per cent of male respondents.
Treasury minister Torsten Bell (pictured right with Scottish First Minister John Swinney) is the former chief executive of the Resolution Foundation | GETTYAnalysts claim these patterns suggest those with the most urgent need to understand their retirement finances are paradoxically the least likely to do so.
The research indicates that 35 per cent of people examine their cash savings at least once weekly, whilst 18% review investment accounts every seven days.
In sharp contrast, merely nine per cent check their workplace pension with the same weekly frequency. Although annual reviews are recommended as a minimum standard, only 56 per cent of people meet this basic threshold for pension monitoring.
Based on this research, Standard Life is highlighting how how retirement savings receive far less attention than other financial assets, despite their critical importance for future security.
Among those who examined their retirement savings within the past twelve months, 20 per cent reviewed their projected retirement balance.
A smaller number pursued more proactive measures with 14 per cent increased their regular payments, 11 per cent modified their investment risk profile, 10 per cent made single lump-sum contributions, and nine per cent combined multiple pension pots.
Gail Izat, the managing director for Workplace Pensions at Standard Life, part of Phoenix Group, emphasised the importance of regular monitoring.
She explained: "Your pension pot might not need daily attention like your bank account, but checking it at least once a year is a smart move."
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| GETTYMr Iznat highlighted that annual reviews help people understand their accumulated savings, assess future possibilities, and identify whether adjustments to contributions or investments might be beneficial.
The retirement expert added: "With one in seven people never reviewing their pensions, many risk missing opportunities to boost their savings – or even risk losing track of their pots altogether.
"As retirement gets closer, staying on top of your pension becomes even more critical, yet it’s worrying to see how many over 55s have never looked at their balance. The process is very simple, and if you’re unsure how to start, your pension provider or employer can guide you through it."