Nearly three in 10 have no idea what to do with retirement savings – survey

2 March 2021, 12:14

Models of people on a pile of coins and bank notes.
Money stock. Picture: PA

Some 28% of people have no idea what to do with the retirement pots they have built up, the People’s Pension said.

Nearly three in 10 pension savers have no idea what they will do with their retirement pots, a survey has found.

Some 28% of people do not know what to do with the savings they have built up for their retirement, workplace pension scheme the People’s Pension found.

The research also revealed more than a fifth (22%) of pension savers aged 55 or over do not know when they will retire.

And more than a third (35%) across all age groups are unsure when they will stop working.

Three quarters (75%) would consider taking guidance about how to make their savings last throughout retirement from a pension provider with a legal duty to put their interests first, according to the survey carried out by YouGov.

The survey presented people with options for using their pension savings during retirement.

Nearly four in 10 (37%) of those who are saving for retirement would be prepared to be guided towards taking a pension that was split between giving them a guaranteed regular income (an annuity) and the rest as a flexible income pot (drawdown) after taking a tax-free lump sum up-front.

A further 35% chose a guaranteed regular income only option after taking the tax-free lump sum.

Phil Brown, director of policy and external affairs at B&CE, the provider of the People’s Pension, said: “This latest research provides further evidence that pension savers are crying out for guidance about how they should approach retirement.”

Over-50s can get free guidance from the Government-backed Pension Wise service to help them understand their options.

More than 2,100 adults were surveyed across the UK in February.

By Press Association