www.moneyagonyaunt.com today reports that the latest research from Standard Life says the UK would ‘care’ for a £4,000 car and jewellery worth £2,000, but would need a pension fund to be more than £15,000 before they would feel the same. This £15,000 ‘tipping point’ is when the majority of people said they would care about their pension, with most admitting that they would not take notice of the fund if it held any less than this amount.
19-06-2010
Other shocking facts:
Almost a quarter (23%) of consumers admit that they simply don’t care about their pension
32% of those with a pension admit that they don’t know where it is invested
One in ten (10%) have not reviewed their pension since set-up
63% would need £10,000 in any type of savings before seeking financial advice
The lack of interest in financial assets is not just about long term savings products such as pension funds. Two thirds of the population (63%) said they would need to have more than £10,000 in any type of savings (cash ISA etc.) before they would seek financial advice on how to invest.
Even if someone has spent time setting a pension up and still has a fund in place, almost a quarter (23%) admit that they just don’t care about their pension. One in four (26%) never think about their fund with a third (32%) admitting they do not even know where their pension is invested. One in ten (10%) even said they had not reviewed their fund since they started contributing to it. Reinforcing gender stereotypes, of those with a pension, women were found to care more for their jewellery then their pension fund. Men, in contrast, were found to care as much for their pension as they did their car.
Mark Polson, Head of Customer Management at Standard Life said: “Our car and the jewellery we have at home are some of the most immediate assets we possess and, the extent we care about them increases as they become more valuable. However, these assets are often worth a fraction of the savings that people have which have the potential to secure their financial future. It’s shocking that a pension has to be eight times the value of the jewellery people own before they care about it.”
He continued: “By taking an active interest in your finances, such as investing in long term savings products and staying engaged, your money can work harder for your future, It’s time to reality check our attitudes to saving.”
