Six out of ten people (63%) think their financial knowledge is either excellent or above average, according to a new survey of working adults. Yet more than two out of five (41%) know they are not saving enough for a comfortable retirement.
The research also found that 16% don’t know if they are allowed to pay more into their workplace pension and 14% are unsure of how much their employer contributes. The full results are available here.
Jonathan Watts-Lay, Director, WEALTH at work, comments;
“This shows it’s quite common for people to overestimate their financial ability. After all, people do not know what they don’t know. They might think their financial knowledge is excellent, or at least above average, but actually in many cases, are not saving enough for retirement and don’t understand how to make the most of their workplace pensions.”
He continues, “Financial education and guidance in the workplace can ensure employees realise how valuable workplace pensions are and how to maximise their savings. For example, how they could free up money to ensure pensions are affordable. Many companies are now seeing the benefit of sourcing specialist financial wellbeing provides to help employees improve their financial future, covering everything from debt and money management through to optimising employer sponsored benefits and retirement.”
The research of 1,015 UK adults in employment was carried out by Vital Research between 20th May and 4th June.