Over half (56 per cent) of master trust members aged 55-64 have little or no awareness of their retirement options, the Scottish Widows Master Trust Membership Survey Insight Report has found.

The latest annual report also revealed that over a third of members aged 55-64 still need to start planning for retirement. However, 40 per cent of this age group responded that they would like to spend more time understanding their retirement options.

Of the respondents aged 65+, 42 per cent said they still know ‘very little’ or ‘nothing at all’ about their retirement options.

However, 14 per cent stated they know ‘everything they need to know’, and 44 per cent said they know ‘a fair amount’. Just over one-third (36 per cent) of this age group said they are fully planned for retirement.

Looking at younger age cohorts, members aged 35-44 were most likely to consolidate their pensions, while 33 per cent of those aged under 45 had changed how much they pay into their retirement plan in the past year and 41 per cent had updated their personal details or beneficiaries.

The report also found gender differences, with 44 per cent of female master trust members responding to the survey saying they don’t know enough about what to look for [with retirement saving] versus 33 per cent of males.

Around two-in-five members of all ages and genders reported a lack of understanding (37 per cent), or implicit trust in their provider (35 per cent), as the reasons why they do not engage with their retirement savings. For the under-30s the sense that retirement is too far away also made them less likely to engage.

Meanwhile, 42 per cent of all respondents said that an online platform with all their pensions in one place would help them to take more of an interest in their retirement planning, with the second most popular option (40 per cent) being speaking to someone about pensions.

Commenting on the report, Scottish Widows master trust lead, Sharon Bellingham, said: “Concerningly, the findings from this survey show how over a third of members aged 55-64 still need to start planning for retirement and of those aged 65+, just over one third are fully planned for retirement.

“However, to conclude on a positive note, there is much to remain optimistic about – nearly half of members with low pension understanding are motivated to learn more."

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