Most pension savers don't know where they invest

Retirement funds

More than one in seven people approaching retirement do not know how their pension fund is invested or how it is performing, according to a survey of Axa Life Invest customers.

Just under 40% of current pensioners said they did not start saving towards their retirement until the age of 40 and one in five said they had been caught out by lower than expected annuity rates.

Indeed, 10% found that their retirement income was significantly less than expected.

Additionally, among those who had already retired, a quarter had seen a drop in their standard of living in retirement and one in four of that group had cut back on essentials such as food and heating.

However, among those yet to retire in their 50s and 60s, 43% told Axa they think they will spend most of their retirement income on holidays, entertainment and leisure after the age of 75.

Simon Smallcombe, UK managing director for AXA Life Invest, said: "Too many pensioners have been caught out by rock-bottom annuity rates. But this shock to the system is avoidable. It pays to start planning early - 10 to five years before your retirement, not six months."

Find the best annuity rate for your circumstances

More about