Pensions- demystifying the workings of pensions

A Pension Black Hole of sorts has been created with a quarter of UK adults having no clue about their pension schemes

08:58 21 December 2013

There has been a lot of confusion about pension schemes in the UK. In a recent online poll conducted, the findings proved that the knowledge on pension schemes among the working population of the UK was wanting.

The poll revealed that a third of UK working adults would take the initiative and try to locate a pension scheme. When probed further they said they knew how to go about the entire affair.
Understanding the roots of the black hole of pensions

In the polls, 47 per cent of the people interviewed did not know how they lost their pensions. Some lost it through paperwork while others lost track of it while they changed their employment. A shocking revelation was that young working professionals had already lost track of their pensions.

People will change jobs nowadays several times in their working life. Each of these places of employment might have pension schemes and therein lies the problem. They never stick to one place and their pensions get lost in the mire of job changes.

To avoid this situation you should ensure that you take time to get your papers in order. Lost paperwork can stand in the way of your financial security. Some individuals think about taking time to plan and get their paperwork together. This is one of the steps that will make sure that your pension is safe when you need to access it later on.

The government has taken steps to ensure that small pension funds are held to account by ensuring that enrolled automatically. The ones already in existence might not be registered and it is important that you keep an eye on them and their pensions.