You could be missing out on your retirement options
More than one in three people approaching retirement are unaware of the pensions reforms announced in the March Budget, according to new research from MetLife.
Its study among people aged 55 and over with pension savings shows 35% are either unaware or unsure about the overhaul due in April 2015, which will enable retirement savers with defined contribution schemes to access their money however and whenever they like from the age of 55.
The research found 27% admitted to having not heard or read about the pension changes, while 8% did not know whether they had heard or read about the changes.
However the study – conducted after the Budget – showed a switch away from annuities, with 27% of savers definitely ruling out buying one before legislation is agreed, while another 22% were unsure of retirement income plans.
New pensions’ flexibility
It is easy for the pensions industry to assume that everyone is focused on the Budget reforms and thinking about what they need to do. In reality, substantial numbers of people who need help and advice to navigate the new pensions’ flexibility are unaware that the industry has changed completely, and they will now have the freedom to control their retirement funds.
Research conducted online between 1–7 April among a nationally representative sample of 568 adults aged 55+ with defined contribution pension savings by independent market research firm Consumer Intelligence.
INFORMATION IS BASED ON OUR CURRENT UNDERSTANDING OF TAXATION LEGISLATION AND REGULATIONS. ANY LEVELS AND BASES OF, AND RELIEFS FROM, TAXATION ARE SUBJECT TO CHANGE.
A PENSION IS A LONG-TERM INVESTMENT. THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATION