Less than half (47 per cent) of pension savers reviewed their pension scheme in the past year, with just under a fifth (18 per cent) regularly reviewing their pension, according to research from Investec Wealth & Investment.

The survey found that those aged between 55 and 64 were most likely to review their funds, with nearly two thirds (62 per cent) saying they had reviewed their pensions in the past year, while 27 per cent reviewed them regularly.

Many savers are also in the dark about how risky the investment allocation is, according to the research, which found that nearly a quarter (23 per cent) of pension savers do not know the level of risk on their main pension fund while 41 per cent believe is very low risk or low risk.

This applied just as much to younger investors, with 29 per cent of those aged between 18 and 24 saying their funds are low or very low risk.

The research also raised adequacy concerns, as 38 per cent of respondents admitted that they have less than £75,000 saved in their pension funds.

This was just as true for those savers in the run-up to retirement, as the research found that 38 per cent of those aged 45 to 54 have less than £75,000 saved, while 28 per cent of those aged 55 to 64 have the same level of pension savings.

Commenting on the findings, Investec Wealth & Investment senior chartered financial planner, Faye Church, stated: “Anyone contributing to a pension should be reviewing their funds at least annually. So many people invest in the default fund available and then forget about it.

“There can be a huge difference between investment selection and performance, which in turn dictates the growth of the pension fund, especially when you consider someone contributing in their 30s won’t be able to access the funds for another 20 years or so.

“Part of the investment review should focus on risk through asset allocation, as the longer you have to invest the longer you have for any peaks or troughs to even themselves out. Given most people can’t access their pensions until 55, this brings with it an opportunity for younger savers to obtain some good long-term growth within their pension.”

---