Two-thirds of over-40s yet to discuss pension reforms

By Robert Crawford 1st February 2015 12:00 am 5th April 2017 12:14 pm

Almost two-thirds of people aged between 40 and 70 years have yet to speak to someone about the incoming pension reforms, according to research by retirement provider Partnership.

Its survey of more than 1,600 people aged between 40 and 70 found that nearly a third (31%) of respondents have spoken about the pension reforms due in April

This rises to 37% among respondents aged between 56 and 60, and to a third (33%) between respondents aged 61 to 70.

Of those that had spoken to someone about the reforms, the majority (44%) of over-40s had spoken with their partner compared to 16% of respondents who had spoken to a pensions provider or an independent financial advisor (16%).

Just 13% of respondents had spoken to their employer.

The research also found:

54% of respondents are interested in the pension reform developments.
21% feel up to date about the reforms.
11% of respondents are actively seeking to find out more information.
22% do not know much about the pension reforms.
18% have other things to worry about
8% are not interested in pensions.

It also highlighted that engagement with the new pension reforms increases with age.

Some 61% of 61 to 70 year-old respondents were more interested in the reforms, however, 13% of this age group say they have other things to worry about and 17% of respondents believe that because they are part of a wokrplace pension scheme the changes are not relevant to them.

Andrew Megson (pictured), managing director of retirement at Partnership, said: “While the industry is focused on what is happening with pension reforms, it is extremely worrying to see that only 31% of 40 to 70-year-olds have spoken to someone about these changes and many appear to simply have had a casual chat with their partner.

“While discussing aspirations for retirement is obviously important, the changes that will come into force at the start of April have the potential to significantly change how people approach retirement planning so it is vital to get informed advice.

“Taking the time to read up on the changes, speaking to providers, reviewing existing arrangements and contacting an adviser will pay off in the long run.

“Many of these things can be done before [employees] speak to the Pension Wise service and also allow to [them] to consider issues such as how much guaranteed income [they] may need for life and what inheritance [they] wish to leave.

“Even if employees make no real changes, they can be secure in the knowledge that their retirement choices are the best possible ones for their situation.”