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Published on : February 20, 2020 14:57

Data shows over 60% of 55-59 year-olds are not researching their retirement options

According to data released by Legal and General, a large number of people are not actively researching their retirement options.

They found that 40% of 65-69-year-olds are not yet actively researching their retirement options. This percentage rises to over 60% when surveying those aged 55 to 59.

The report also showed that a third (32%) of pots were accessed without advice, compared to just 5% before the freedoms.

Useful Link: Pension Financial Calculators

And, there does seem to be confusion among consumers unsure where their pots are invested (28%), or those who thought they knew, being mistaken.

When consumers focus on the decision to take their tax-free cash, they may not realise the tax implications for the remainder of their pension savings.

More than a quarter (27% of those who took part in the survey didn’t know they had to pay tax on at least some of their pension income.

L&G’s research found that appetite for risk is low, with almost half of all people saying they would want to avoid risking their money.

They also found that nearly three-quarters of people aged over 55 are not prepared to take big risks with their money.

Top Four Takeaways

  • Clients don’t plan ahead or spend enough time fully researching their retirement options.
  • Awareness about retirement options and their impact on future income remains very low.
  • Clients still don’t fully understand their retirement income options, so they need more help.
  • There’s widespread confusion about taxation and tax-free cash.

Do you need help understanding your pension options?

Here at Edward Mellor, we offer free expert pension advice to anyone who needs our support.

We aim to help you make the most out of your hard-earned savings – which so many fail to do.

The three key questions you need to ask yourself are:

  1. Have you researched your retirement options and sought advice?
  2. Do you understand the tax allowances and tax implications?
  3. How much risk are you prepared to take in retirement?

If you answered no or don’t know to the above questions, please get in touch.

Call us today on 0161 443 4840 or email [email protected].

Get in touch today and let us help make your savings work harder for you.

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