At the age of 38, Tom Bourlet from Brighton has never checked his pension pots, fearing they may not provide enough for his retirement. Although he believes he has four workplace pensions, Bourlet is uncertain about the actual amounts. His journey into pensions began in 2012, but a shift to self-employment shortly after left a significant gap in his contributions.
Bourlet’s self-employment lasted for five years, during which he did not make any pension contributions. Upon returning to employment, he only contributed the minimum required under auto-enrolment. Recently, he has taken a proactive step in his financial planning. “I started my new role recently and have requested my contribution be increased by 3 percent more than the minimum,” he explained. Despite this increase, he worries it may still fall short of making up for the gaps in his savings history.
The fear surrounding pensions is prevalent, as highlighted by research from pension firm Standard Life. The study revealed that one in ten individuals feel overwhelmed by the idea of checking their pensions, while nearly a third are unaware of how much they have saved. This can lead to under-saving for retirement, making it crucial for individuals to confront their pension fears.
Research indicates that even small changes can yield significant benefits. For instance, Standard Life’s analysis shows that an individual earning £25,000 and contributing the minimum auto-enrolment amount—5 percent from the employee and 5 percent from the employer—could accumulate a pension pot of £210,000 by age 68, when adjusted for inflation. However, if that individual recognized their potential shortfall and increased their contributions by an additional 2 percent starting at age 30, their total could rise to £252,000—a difference of £42,000 in today’s money.
Bourlet, who currently serves as the head of marketing at Modern World Business Solutions, acknowledges his long-standing reluctance to check his pension status. He knows that once he checks, he will likely need to increase his investment even further. He is optimistic about the upcoming launch of the Department for Work and Pensions’ (DWP) pensions dashboard, expected to be available to the public in late 2026 or early 2027. This tool aims to consolidate information on various pensions, including state pensions, into one secure online location.
“I honestly don’t know much about my pensions, but I’m hoping the pension finder that is coming will help me locate them,” Bourlet stated. Without such a resource, he fears he may not have a complete understanding of his retirement savings.
Before the launch of the pensions dashboard, individuals can still track their old pensions using the free online government Find Pension Contact Details website. Bourlet mentioned his increasing interest in pension planning this year, revealing that he has even sought advice from artificial intelligence regarding how much more he should save.
Mike Ambery, Retirement Savings Director at Standard Life, frequently encounters individuals who postpone addressing their pension savings. He cautions that this avoidance can lead to difficulties in the future. “A few minutes spent checking your balance or reviewing your contributions today could make a world of difference tomorrow,” he advised.
Ambery emphasizes that even modest increases in pension contributions can accumulate to substantial sums by retirement, thanks to the power of compound investment growth. As Bourlet takes steps to enhance his pension contributions, he joins many others who are beginning to confront their financial futures with greater awareness and determination.
