These figures reinforce the Government’s programme of pension education & confirm the need for individuals to understand their pension circumstances.
Bespoke investment house Blackmore Global has today issued research revealing that nearly three quarters of people in the UK – or 73% - are not sure how much their pension funds are currently worth.
This means that only one in four will know what income they can expect to live off when they retire – despite the fact that most will be receiving yearly pension statements.
What’s more, those not keeping a close eye on pension investments risk falling behind and not making sufficient top-ups until the last minute, when it could be too late to catch up.
The research follows a major shake-up of pensions in the recent Budget, in which Chancellor George Osborne cut the maximum amount that can be saved in a pension from £1.25m to £1m. At the same time, from April 2015, pensioners will be able to sell their annuities. Tax rules will be changed so that those who already receive an income from an annuity can sell it to a third party, as long as the annuity provider agrees.
It also comes against a general background of auto enrolment, meaning every employer must enrol eligible staff members into a pension scheme, making these investments even more important.
At the same time, pension holders have been advised to resist the temptation of making a “dash for cash” when other new rules come into effect on April 6, making it easier for those approaching retirement to withdraw funds from their pension pot.
Consumer groups and insurers have been quick to warn investors to take their time, and not act too quickly. But it will not be easy to make an informed decision without knowing how much an individual pension pot is worth.
A company spokesperson for Blackmore Global said: “These figures reinforce the Government’s programme of pension education & confirm the need for individuals to understand their pension circumstances.”
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