“The earlier that someone starts saving into a pension the better and that’s largely due to employer pension contributions, the government top up in the form of tax relief and then the benefits of compound interest.
“But it is difficult for people to see the benefits of pensions if they don’t understand them.”
While some people were very engaged with their pension, with almost one in four (24 per cent) saying they checked theirs at least once a month, one in five (21 per cent) said they never checked their pension.
Moffat said it is especially important at key points in people’s lives like entering the workforce or changing jobs to understand benefits.
“However, having a child and stopping or working part-time due to caring responsibilities or health issues are also key points” she said.
“These are more likely to affect women and this is one of the reasons that two thirds of women feel like they aren’t financially prepared for retirement compared to just over a half of men.”
sonia.rach@ft.com
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