20% save more into pension as a result of pension freedoms

Mark Hill-Aegon-2015A fifth (20%) of respondents are saving more into their pension as a direct result of the pension freedoms, according to research by Aegon.

Its fourth annual UK readiness report, which surveyed 3985 adults, also found that just 8% of respondents are currently on track for the retirement income they aspire to.

The research also found:

  • Around a quarter (22%) of respondents have checked the performance of their retirement savings since the pension freedoms were introduced in April 2015, and 20% have taken steps to review or affect their plans for retirement.
  • A quarter (25%) of respondents are not aware that the reforms increase the likelihood of pension scams.
  • 19% of respondents have received cold calls offering a free pension review or pension investment opportunity since the pension freedoms came into effect.

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Mark Till (pictured), managing director at Aegon UK Direct, said: “While an additional 400,000 people are on track for the retirement they want, 92% are still falling short of their retirement targets. This is a small improvement but we’re optimistic the pension freedoms have reignited people’s interest in their pension and that we should see greater engagement in the years to come.

“The pension freedoms have focused primarily on giving those approaching retirement more control over their savings, something that we wholeheartedly support. However, whilst we are seeing initial steps in the right direction, it is vital that we continue to support those starting out or still on their savings journey.”