29 January 2024 , 11:27
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A survey has shown that people who went to private school are more likely to have learned about pensions at school (20%) than those who had a state education (6%).
The study also found that 42% of privately educated 35 to 44 year olds check their pension pot at least once a year, compared with just 17% of state-educated people of the same age. The research also revealed that privately educated individuals were more likely to have private pensions outside of work-linked ones (40%), compared to those who went to state school (26%).
On average, state-educated people had £112,765 in their retirement pot, while those who were privately educated had a whopping £302,782, according to the study by Annuity Ready, part of the Legal & General Group. More than a third (37%) of privately educated people said they would rely on financial advisers for pension and retirement advice, while three in 10 (30%) state-educated people would turn to family and friends.
State-educated people nearing retirement were more likely (22%) to say they didn't know they could shop around with their pension pots than privately educated folks (5%). With more than half (57%) of individuals finding retirement plans to be complicated, it's no doubt planning for this stage of life feels like a tangle one has to navigate through due to a lack of knowledge.
Furthermore, 35% confessed they feel overwhelmed and anxious about their retirement planning. Commercial director at Annuity Ready, Sarah Lloyd, promoting a Get Britain Pension Ready campaign highlighted: "No-one, from any background, should get left behind.
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"We're encouraging everyone to get pension ready with our free online resources and seek the guidance they need, to understand all the financial options available to them when they come to retire."
The chief exec at Independent Age, Joanna Elson, said: "Far too many older people in financial hardship face later life with little or no savings, struggling to afford even basic essentials." She shared the sentiments of those older people who worked their whole lives yet do not have enough cash stashed for retirement, further revealing that one person had expected his private pension to be £400 a month, but instead, it turned out to be an insufficient £90 a month.
Angellica Bell, TV Presenter and ambassador for the Get Britain Pension Ready campaign, stressed the importance of helping everyone understand and manage their finances for retirement effectively amidst all the jargon. She said: "It really is important that we help everyone cut through the jargon and simplify this important topic so that everyone feels informed and empowered when managing their finances for retirement."
"It all starts with education, and as the research very clearly shows, the earlier we start learning about pensions and thinking about the future, the better." The survey was carried out by OnePoll on behalf of Annuity Ready, with 4,000 adults across the UK surveyed in December 2023.
Free Government-backed services such as the MoneyHelper website and Pension Wise are available to help people understand more about their pensions. People can also use the Pension Tracing Service to locate lost pension pots.
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]