Almost half of UK residents (45%) are unclear whether they chose the default option when they last reviewed their occupational pension according to research by Baring Asset Management.
In addition, only one in five say they have chosen the fund allocations of their pension. This is the highest percentage Barings has recorded since 2008.
Chief investment officer Marina Valensise said the lack of clarity highlighted ‘a worrying apathy towards pension investment among Britain's population.'
The research also showed people are less likely to consult a financial adviser about their pension than in previous years. The numbers have decreased year on year from 40% in 2008 to 31% in 2011. People are going to friends and family (15%) as well as their employer (5%) to get this advice.
Valensise added, ‘Far too many people do not know how their pension has been invested and many are happy to accept the default setting which may not necessarily offer the best fit in terms of risk and reward. We strongly encourage people to talk to a professional adviser to ensure they are aware of all the options available to them.'
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