Nine in 10 Brits are unsure what pension payments they are entitled to, whilst a further 13 per cent do not realise they are entitled to anything at all, according to research from Money.co.uk.

The survey found that almost a quarter (24 per cent) of savers would struggle to locate and access their pension pots, with a further 18 per cent stating that they have “no idea” where their pension is being saved.

It also looked at how pension contributions vary throughout life, revealing that 16-24 year olds and 25-34 year olds are putting away a higher proportion of their earnings for the future than those aged 35-54.

In particular, it found that 16-24 year olds were making an average pension contribution of 8.1 per cent and 25-34 years olds were contributing 7.2 per cent, whilst 34-44 year olds were making an average contribution of 6.4 per cent.

However, the average contribution rose again amongst those aged 55 and over, increasing to 8.2 per cent.

Savings accounts and stocks and shares investments were the most popular way in which savers were planning to finance their future, with 38 per cent making use of savings accounts and a further 15 per cent investing in stocks and shares.

In addition to this, one in ten savers said that they also plan to, or already to, work a second job to help cover their financial needs in later life.

Commenting on the findings, Money.co.uk personal finance editor, Salman Haqqi, said: “A pension is a vitally important tool for helping provide a stable income in later life.

“Once people retire, this often forms the majority of their income, so the nine in 10 people who were unsure about their future may want to re-familiarise themselves with the systems, as well as the location of their pension pots and log in details, to avoid any potential issues that could arise in the future.

“The basic state pension payment is £137.60 per week, with this amount rising to £179.60 for younger workers, as outlined on the government’s website.

“However, 25 per cent of Brits are missing out on potential further payments in the future as they have opted out from additional personal or workplace pensions. It is certainly worth assessing your options to provide the right balance between having enough disposable income now, and ensuring financial security in the future.”

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