40% of the UK understand the money they put into a pension each month is being invested. This is a frightening statistic, particularly when you compare it to the 70% of us who could identify Kim Kardashian from a photo.
While Ms Kardashian probably won’t shape your future financial wellbeing (no offence Kim), she still manages to capture the UK’s attention far more effectively than most pension content.
Education needs to be better, because in failing to understand that our pensions are invested, far too many of us are failing to take charge of our finances.
Why are we in the dark?
Many people don’t realise their pension is invested because they’ve never actually had to make a conscious choice about it. Thanks to auto-enrolment, your employer sets up your pension and your contributions are typically placed into a “default fund.” These funds aim to deliver steady, reliable returns, designed to suit the average saver.
But here’s the issue: should someone just starting their career really be taking the same investment approach to someone closing in on retirement?
One size doesn’t really fit all
Younger savers have time on their side – and time is a powerful buffer against market fluctuations. This gives them an opportunity to benefit from a higher-risk strategy that offers greater long-term growth potential. By contrast, those nearing retirement often prefer more conservative investments that protect their pension pot as they prepare to draw an income.
While most people can adjust their investment strategy to suit their personal circumstances, many don’t – simply because they don’t realise they’re investors in the first place.
As Clare Stinton, head of workplace saving analysis at Hargreaves Lansdown, puts it:
“If you have a pension, you’re an investor. Unfortunately, most people don’t realise this, so they risk missing a golden opportunity to take control of their retirement planning.”
Not another gender gap
Pension confusion affects everyone, but the knowledge gap is particularly noticeable in women. Recent figures from Hargreaves Lansdown indicate that while 51% of men know their pension is invested, just 28% of women can say the same.
This matters because women typically retire with less than men—not because they make worse decisions, but because the system too often leaves them behind. Existing pension education is failing to engage the individuals who need it most, emphasising the urgent need to change our approach to communication and financially empower a wider audience.
MicroFact’s inclusive approach
At MicroFact, we believe everyone—regardless of age, gender, or income—deserves access to clear, engaging financial insights. That’s why we’ve reimagined pension education: ditching dry brochures in favour of humour, fun, and clarity.
Because if the UK can keep up with a Kardashian, they can absolutely keep up with their pension.
Want to find out more? Request a demo by reaching out at contact@microfact.co.uk
