Privately-educated adults are more likely to have a personal pension than those who attended state schools, according to research. A poll of 4,000 adults found private school educated alumni are more likely to hold private pensions (40 percent), outside of employment linked pensions, compared to their state school educated peers (26 percent).
Interestingly, those who were privately educated are significantly more likely to say they were taught about pensions in school (20 percent), in contrast to state schools (six percent).
Meanwhile, 22 percent of state school educated people reaching retirement age are more likely to say they don’t realise they’re able to shop around with their pension funds, and transfer savings to another provider – compared to privately educated people of the same age (five percent).
It also emerged 35 percent of adults aged 25 to 44 feel unprepared for retirement – with 54 percent of all respondents voicing concerns about not having enough money to see them into it.
Sarah Lloyd, commercial director at Annuity Ready, which commissioned the research, said: “People are heading towards retirement feeling underprepared, and worried they’ll outlive their cash.
“Our findings uncover just how much a type of schooling can contribute to your understanding of pensions, and how financially prepared you feel for retirement.
“People privately educated are more knowledgeable about the financial options available to them when they retire, including options like annuities.
“Also, they’re more likely to take an active role in planning for their financial future, before they start to reach retirement age.”
The study also found 67 percent weren’t aware of the benefits that annuities may offer to those who have pre-existing medical conditions.
When it comes to retirement planning, 29 percent rely on information and advice from online resources and articles, while 28 percent seek help from family and friends.
Just over two-thirds (68 percent), of those aged 65 and over, have planned for their financial security during their retirement. However, retirement planning often leaves people feeling anxious (22 percent), overwhelmed (13 percent), and confused (nine percent).
Furthermore, across all those polled, 84 percent said they didn’t learn about pensions in school. And following on from this, 17 percent incorrectly described what a state pension was – with one in 10 thinking it’s a payment that UK citizens make to the government when they retire.
More than half (57 percent) said they find the entire financial retirement process a minefield, due to a lack of financial knowledge.
And of those who took part in the study, by OnePoll.com, 18 percent said they’ll be downsizing their home and adopting a more frugal lifestyle when they retire.
Sarah Lloyd, at Annuity Ready, added: “Retirement should be something to look forward to – but too many members of the British public instead feel anxious, overwhelmed, and fearful of making the wrong financial decision.
“There’s a whole range of pension options available out there, and it’s a collective responsibility in helping the people of Britain to take charge of their financial futures.
“No-one, from any background, should get left behind. We’re encouraging everyone to get pension ready with our free online resources, and seek guidance to understand all the financial options available to them when they come to retire.”
