Simply over one-third of pension savers (35%) really feel assured to make choices similar to selecting how one can entry their pension once they attain retirement age, based on analysis by office pension scheme supplier TPT Retirement Options.
Its survey of greater than 2,500 outlined contribution (DC) scheme members additionally discovered {that a} related proportion of respondents have been uncertain about how one can greatest deploy their savings once they retire, with 39% not understanding what they may do with nearly all of their pension financial savings once they attain retirement age.
A fifth (21%) mentioned they plan to make use of a financial advisor to make retirement choices, whereas the least engaged and assured savers are least more likely to search skilled recommendation.
Nearly two-thirds (62%) mentioned they help the potential introduction of a brand new pot-for-life type system, whereas 68% expressed an curiosity within the choice of a default decumulation-style drawdown product that would supply pensioners with a gentle revenue for the remainder of their lives.
Philip Smith, DC director at TPT Retirement Options, mentioned: “Our analysis reveals many individuals are anxious about what to do with their pension once they come to retire. A lot of individuals don’t know what to do with their financial savings however are additionally unwilling to pay for skilled monetary recommendation. The brand new system being thought of by the federal government may make it simpler for individuals to plan for retirement, as they’d solely must handle one pension pot.
“It’s encouraging to see wider business reforms are equally specializing in this, and that the scheme savers themselves are in help of such measures, such because the introduction of a pot-for-life system. These adjustments may also help drive pension engagement by giving people the company to make selections over their retirements, and hopefully construct pension savers confidence.”