Almost eight in 10 (79 per cent) UK adults have little to no idea how much money they have saved for retirement, according to research from Moneyfarm, highlighting widespread confusion and disengagement around pensions.

The study found that while over a third (34 per cent) admitted they had a pension pot “out there somewhere” that they had completely lost track of or no longer had the details for.

In addition, more than a quarter (27 per cent) said they did not even know who their pension provider was.

Despite this lack of awareness, the average Brit still hoped to retire at 62 with an annual income of close to £30,000 - an expectation experts warned was unrealistic given current saving behaviours.

The research also found that 45 per cent of people had lost track of savings, investments or bank accounts, while nearly half (49 per cent) had lost track of workplace pension pots from previous jobs.

Knowledge gaps extended to the state pension too, with 73 per cent of respondents admitting they had no idea what it was worth per month.

As a result, 87 per cent agreed that pensions were too confusing, and 68 per cent said they did not understand the different types of retirement plans available.

The most confusing aspects of retirement planning were cited as understanding the different types of pensions (44 per cent), knowing what tax to pay (30 per cent), and how to claim a pension (26 per cent).

Other commonly misunderstood concepts included lump sums versus annuities (27 per cent), pension caps (18 per cent), salary sacrifice (15 per cent), and defined benefit formulas (14 per cent).

Despite these concerns, over three quarters (76 per cent) said they had never had their pension options explained by a professional, and 58 per cent admitted they avoided thinking about retirement saving altogether.

Meanwhile, more than half (52 per cent) said they did not believe they would have enough money to retire.

Moneyfarm financial expert, Carina Chambers, warned that the findings pointed to a growing risk for future retirees.

“The research shows that we’re sleepwalking into a retirement crisis, with too many people thinking their pensions will magically sort themselves out,” she argued.

“Losing track of your pension pots or not knowing how much you’ve saved can have a huge impact on your future financial security.”

Chambers added that early and regular planning can help make retirement saving more manageable.

“This could be things like consolidating old workplace pensions, checking funds and fees, and using pension calculators, so you can check you’re on the right path toward the retirement you deserve,” she said.

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