7th December 2018
L&G: Consumers still confused about pension freedoms
Three years down the line and there’s still considerable confusion among retirees about their options at retirement. And it’s costing them dearly.
HM Treasury forecasts an additional £5.1 billion in tax revenue by April 2019, from the pension freedoms that allow retirees to access their pension savings from 55.[1]
Our recent research of more than 2,000 over-55s showed that many consumers profess to having insufficient knowledge to be able to evaluate the risk of different retirement income products. They’ll often spend more time choosing a new car or bathroom suite than thinking about how to access their pension savings.
And according to the Financial Conduct Authority, a third of pension pots are accessed without advice. At Legal & General, we believe if consumers understood the consequences of their actions better, they’d be less likely to leave retirement planning to the last minute, and less likely to make quick decisions about how they access their pension income.
Find out more about retirees’ attitudes to pensions in our What's the price of pension freedoms? article.
Q0058123 11/18 SUB193463
[1]Oliver Wade. 2018. HM Treasury to benefit from £5.1bn bonus due to pension freedoms. [ONLINE] Available at: http://www.pensionsage.com/pa/HM-Treasury-to-benefit-from-5-1bn-bonus-due-to-pension-freedoms.php [Accessed 3 October 2018]
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