A recent survey from The People’s Pension[i] found that almost one in five savers (19 per cent) have never reviewed how much is in their pension savings, and a similar proportion (21 per cent) check their pension just once a year.
Other research from Just Group[ii] shows that one in ten retirees aged 55 and older regret withdrawing from their pension before leaving full-time work, with nearly half receiving no advice or guidance, and only 27 per cent consulting a regulated financial adviser.
The Pensions and Lifetime Savings Association[iii] highlights that the income needed for a person to have a moderate standard of living in retirement has risen by 38 per cent.
Steve Butler said: “Having a decent pension pot has never been more important as the state pension dwindles in value and the cost-of-living increases. However, many people remain disengaged from pension saving. For those nearing retirement, some are not maximising their savings, leading to financial decisions they later regret.
“While Pension Freedoms offer greater flexibility, most people are not financial experts, which can result to poor retirement outcomes. Also, with annuity rates back in favour, wide variations in annuity deals can mean missing out on tens of thousands of pounds over a lifetime without proper advice.
“Employers play a vital role in helping employees achieve a better retirement by providing financial education, access to guidance and advice, and tools and resources to make informed choices about their future. Our digital platform, Pension Potential, simplifies retirement planning, helping individuals achieve their retirement goals.”
Pension Potential has a range of simple tools including online retirement and lifestyle calculators and an ‘all of market’ annuity search solution to select the best deals. It also gives access to personalised retirement recommendations with an easy to follow ‘advice journey’ which ends with a video call with a financial adviser.
For more information visit: www.pensionpotential.co.uk.