Why it’s time for a Pension Check-Up at every life stage

At M&G, we believe it’s time to rethink how we talk about retirement and how we prepare for it. That’s why we’re calling for regular “Pension Check-Ups” for people of all ages. Just as we visit the GP for health check-ups, we should be checking in on our financial wellbeing too.

Too many people are putting off retirement planning until their 40s. In fact, 62% of people admit to delaying it, risking a generation that saves too little, too late. A Pension Check-Up is a simple, practical intervention that can help people take timely action. Whether it’s reviewing contribution rates, consolidating pension pots or understanding what their savings might be worth in the future, these check-ups can help individuals to make informed decisions.

We’re advocating for Pension Check-Ups at key life moments, such as starting a job, buying a home, getting married or planning for retirement, to help people feel more confident and in control of their financial future.

Anusha Mittal, Managing Director of Individual Life & Pensions at M&G:

“There is appetite across the generations for financial planning support to be provided a lot earlier. A Pension Check-Up at key life moments, whether it’s moving jobs, buying a house, getting a promotion or starting a family, has significant promise to spur people on to become more informed and confident about their pension choices from an earlier age.”

Our research, conducted in partnership with the Social Market Foundation, found strong support for the idea of regular Pension Check-Ups. The most valued features include:

A clear summary in one place of what all their pensions and savings are likely to be worth when they retire (45%)
A review of pension contribution rates and what a potential increase could mean for the future of their pot (31%)
An annual financial check-up for expert advice on savings and pensions (31%)

This desire is consistent across all age groups. In fact, 42% of 18 to 24-year-olds said a one-stop-shop view of their retirement pot would help them take action, compared to 49% of 55 to 64-year-olds.

Theo Bertram, Director of the Social Market Foundation:

“This research shows that there is appetite for a ‘Pension Check-Up’, including from those in younger generations. They want it to be independent and optional but if a routine check-up was designed and delivered in the right way then it could be the gateway to unlock a series of actions, whether it’s evaluating all of your pension pots in one place or increasing contribution rates. Services do exist already, but they are predominantly aimed at the over 50s when M&G’s research shows younger people would value this service too.”

While the focus is on practical support, we also recognise the role that language plays in shaping perceptions. Outdated terms like “OAP” and “senior citizen” are falling out of favour, 57% and 43% of Brits dislike them respectively. In contrast, words like “freedom” (liked by 64%) and “the next chapter” (53%) better reflect how people want to think about their future.

Anusha Mittal adds:

“It’s time to drop outdated language like OAP and senior citizen as it paints retirement in a negative light when it has dramatically changed as people live longer. If retirement is uninspiring then people are less likely to financially plan, which reinforces the problem that many do not engage early enough.”

Let’s make Pension Check-Ups a normal part of life and help everyone feel more confident about their financial future.

We launched our Reframing Retirement campaign to change the conversation around retirement and encourage proactive financial planning, find out more: https://www.mandg.com/views-and-insights/reframing-retirement