Half of Baby Boomers don’t know how much is in their pension – here’s how to find out

Baby Boomers are among the least likely to know how much they have in pension savings, according to new research – despite relying on the pot to fund their immediate living costs – but there are simple ways to find out.

Blind spots when it comes to pensions can mean missing out on ‘lost’ pension pots that could be easily traced. Likewise losing out by taking too much or too little investment risk to generate an income. Plus not knowing your pot value makes it harder to keep track of withdrawal rates to make sure your money lasts as long as you do when you’re in drawdown.

Older generations struggled most to estimate their retirement savings, a study by Standard Life found. Two-thirds (67%) of the Silent Generation – those born between 1928 and 1945 – and over half (52%) of Baby Boomers – born 1946 to 1964 – were unable to put a figure on their pension’s worth.

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The survey of 2,000 people found the lack of awareness spanned all age groups, but was most common among those already at or nearing the stage where they need their pensions to fund their post-work lifestyle – and where they may just have enough time for a bit of tweaking that could give their retirement savings a vital boost.

Gen X (aged 44 to 59) were a bit more savvy – but 43% still say they are in the dark about the total value of their pension pot. Millennials – those aged 28 to 43 years old – are the most clued up, with 62% able to put a figure on how much they have in their pension.

Source: Standard Life

Confidence gap in retirement savings

Even among those who say they do know how much is in their pension, over a quarter (27%) aren’t sure it will fund the lifestyle they want in retirement. Just a fifth (21%) feel very confident they’ve saved enough.

Gen X – who were caught in the gap between the decline of defined benefit (DB) pension schemes and the introduction of auto-enrolment in 2012 – are the most concerned, with a third (33%) feeling unsure their savings will achieve their desired retirement lifestyle, and only 14% feeling very confident they’re on track.

Dean Butler, managing director for customer at Standard Life, said: “The generational differences in pension awareness are striking. Older generations may be more used to thinking in terms of expected income rather than pot size, especially if they’ve relied on defined benefit schemes.

Gen X, now deep into their careers, often face the challenge of tracking multiple pension pots from different jobs, which can make it harder to get a clear picture, he added.

“On the other hand, it’s encouraging to see that many younger adults, especially digitally savvy Millennials, are more likely to know their pension figures, suggesting technology and early engagement are helping to build financial confidence from a younger age,” Butler said.

How can I find out how much is in my pension?

Even a quick review of your pension can help you spot gaps, make better informed decisions, and feel more in control of your financial future. It’s usually very easy to find the information you need once you know where to look. Butler recommends a few places to start.

1. How do I check how much is currently in my pot?

You should receive an annual statement from any workplace and personal pensions. If you don’t, ask for one. Many providers now also have online and mobile applications which provide a live view of your pension savings.

2. How do I check what I’m contributing to my pension, and can I make top-up payments?

Check what you contribute to your pensions through your pension statement or online account. You can also usually make any additional payments online – both regular contributions and one-off lump sum payments – or by speaking to your provider.

3. How can I see what my pension pot might be worth in retirement?

Your pension provider will give you an estimate of your future pot value and the income it could generate once you retire. These forecasts often assume you use your pot to buy an annuity (a guaranteed income for life), but you don’t have to. Pension calculators let you explore different scenarios – for example, how retiring earlier, paying in more, or changing your investment approach might affect your outcome. Butler said: “These tools can give you a clearer sense of whether you’re on track and highlight any gaps you may want to address.”

4. How can I work out what I’ll need in retirement – and whether I’m on track?

How much money you’ll need in retirement depends on your goals and expected lifestyle.

Pension calculators and your annual statements can give you an idea of how your savings measure up against those goals. Pension UK’s Retirement Living Standards are also a useful benchmark, showing what different lifestyles might cost.

5. How do I track down all my pension pots and bring them together?

Tracking down all your pensions – and deciding whether to combine them – can make it easier to manage your savings and see how they contribute to your overall retirement plan. A pension tracing tool can help you locate any pots you’ve lost track of.

“Bringing pensions together into one pot may simplify your planning and reduce fees,” said Butler, “but it’s important to weigh the pros and cons before transferring, as some pensions carry valuable benefits you wouldn’t want to lose”. If you can, speak to a financial adviser to make sure you’re making the right choice for your future.