When it comes to preparing for retirement, pensions are a key element for many in the UK. However, there are several important details about pensions that may not be widely known. Gary Hemming, a finance expert at ABC Finance, has spoken about some critical insights on pensions that might surprise many Brits, following a survey the company carried out with 2,500 people.

Changing access age

Gary said: “Are you aware that the age at which you can access your pension might change? The survey indicates that 23% of Brits were unaware of this potential shift. This is crucial for retirement planning, as changes in access age can affect when you might be able to retire.”

Inheritance and pensions

Gary said: “A significant finding from the survey is that 31% of respondents did not know that pensions do not automatically transfer to next of kin upon death. To ensure your pension benefits your family after your passing, specific arrangements need to be made.”

The role of fees

Gary said: “Fees can have a more substantial impact on your pension pot than you might think. The survey showed that 43% of Brits did not understand the effect fees can have on their pension savings. These costs can accumulate over time, diminishing the total amount available for retirement.”

Fluctuations in pension value

Gary said: “Another eye-opening statistic is that 26% of participants were not aware that the value of their pension can decrease. The investments within your pension are subject to market changes, meaning the value of your pension could fluctuate.”

Gary stressed the importance of UK residents being well-informed about these pension aspects. With a deeper understanding, individuals can make more informed choices, ensuring a more secure and enjoyable retirement, he said, adding: “If you’re planning for your future, take a moment to consider these insights and evaluate if your retirement strategy needs any adjustments.”