View more on these topics

Half of retirees have no plan for pension freedoms

A new survey shows half of people retiring next year under the new pension freedoms have not begun to assess their options.

In a survey of 500 investors about to retire, Fidelity Worldwide Investment found three quarters will seek help with 35 per cent planning to use a regulated adviser, 21 per cent friends and family and just 20 per guidance.

The surveyed group are retiring between April 2015 and 2016 with a mixture of defined contribution, defined benefit and Sipps with an average pot size of £115,845. 

The report found 47 per cent have not started assessing their retirement options, while just 17 per cent have a clear retirement plan.

Meanwhile, 15 per cent of the people retiring post April 2015 are re-visiting their pension plans in light of the reforms.

There were also a substantial number of individuals who felt unable to manage their income over a lifetime.

Of those surveyed 46 per cent felt unable to manage their retirement income, rising to 57 per cent for those with a pot of £50,000 or less.

While 48 per cent think the new pension rules have made it easier to plan for their income needs in retirement, one quarter feel it will be harder.

Concerns were also raised about the technicalities of accessing tax-free lump sums and whether to spend or re-invest the cash.

Fidelity Worldwide Investment retirement director Alan Higham says: “Not every pension provider will offer full freedom to customers and so people need to be prepared to move firms well before wanting to take any benefits.

“Advisers will play a key role in checking whether providers will offer the solutions their clients need and, if not, making sure it is safe to move providers without harsh penalties or losing other valuable benefits.”

FundsNetwork head of advisory services Jon Everill says: “The new rules present a huge opportunity for advisory firms, which are best placed to help retirees navigate through the increasingly intricate pensions maze to ensure they get the best retirement outcomes.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com