People who attended a private school are more likely to say they learned about pensions at school (20%) than those who were state-educated (6%), a survey has indicated.

More than two-fifths (42%) of privately educated 35 to 44-year-olds said they reviewed or reassessed their pension pot at least once a year, compared with less than a fifth (17%) of state school-educated peers of the same age.

Privately educated people were also more likely to hold private pensions outside of employment-linked pensions (40%), compared with people who were educated at state school (26%), the research found.

On average, people who were educated at a state school said they had £112,765 in their retirement pot, while those who were privately educated had £302,782, according to the research released by annuity comparison service Annuity Ready, part of the Legal & General Group.

More than a third (37%) of privately educated people said they would rely on financial advisers to guide them with their pension and retirement decisions, while three in 10 (30%) people who were educated at a state school would rely on family and friends for retirement advice.

State school-educated people reaching retirement were more likely (22%) to say they did not know they could shop around with their pension pots than privately educated (5%) people.

More than half (57%) of people across the survey agreed that planning for retirement felt like navigating a complex minefield due to lack of knowledge.

Far too many older people in financial hardship face later life with little or no savings, struggling to afford even basic essentials. Many of the older people we speak to have worked all their lives and yet do not have enough money in retirement

Joanna Elson, Independent Age

A third of people surveyed generally said they felt anxious or overwhelmed (35%) about their retirement planning.

Sarah Lloyd, commercial director at Annuity Ready, which has launched a Get Britain Pension Ready campaign, said: “No-one, from any background, should get left behind. 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.”

Joanna Elson, chief executive at Independent Age, said: “Far too many older people in financial hardship face later life with little or no savings, struggling to afford even basic essentials.

“Many of the older people we speak to have worked all their lives and yet do not have enough money in retirement. One person told us he expected his private pension to be £400 a month when in reality it was only £90, which left him unable to make ends meet.”

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

TV presenter Angellica Bell

TV presenter Angellica Bell, an ambassador for the Get Britain Pension Ready campaign, 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.

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