Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

Over-55s failing to take advice before accessing pensions

Open-access content Tuesday 22nd March 2022
Over-55s failing to take advice before accessing pensions

Less than half of the UK's over-55s are taking financial advice before accessing their pension savings, research from the Institute and Faculty of Actuaries (IFoA) has uncovered.

After surveying more than 2,000 adults aged over 55, the researchers found that 40% had not taken advice or guidance to understand their pension savings and how best to access them.

Furthermore, only 22% had used the government's free Pension Wise service for advice, despite the same proportion saying that they worry about running out of money in retirement.

The findings come seven years after ‘freedom and choice’ reforms were introduced to allow people to access their pensions with greater flexibility.

Although these reforms are seen more favourably now than in 2016, only 26% of respondents said that they fully understood the charges for their defined contribution (DC) pension, and 42% said they had no idea how their pension savings were being invested.

“As we discussed in our 2021 ‘Great Risk Transfer’ report, individuals, particularly those with DC pensions, are left to manage the risk of ensuring they have enough savings to fund them through retirement without knowing how long they will live,” said Leah Evans, chair of the IFoA Pension Board.

“It’s more important than ever that savers are prompted at every opportunity, by both government and industry, to take advice or guidance on their pension. This should help them get a better idea of whether they have enough saved to provide the lifestyle in retirement that they aspire to.”

The latest survey, commissioned by the IFoA and carried out by YouGov, also found a gender imbalance. Looking at the findings for men, 58% said they did not need to take guidance or advice, compared to 43% of women. 

Of those needing advice, men were 16 % more likely to take tailored regulated financial advice, whereas women were 7% more likely to access generic guidance from Pension Wise.

“It is well known that, for a variety of reasons, there is a significant gap in the level of retirement income for men and women,” Evans continued.

“Our research shows that there needs to be greater focus on finding specific ways to target and encourage those who need it most to seek appropriate advice or tailored guidance on their pension.”

Evans will appear in front of the government’s Work and Pensions Select Committee on Wednesday 23 March 2022 as part of its third stage inquiry into pension freedoms and saving for later life.

 

Image credit: Shutterstock

Author: Chris Seekings

Filed in
News
Topics
Pensions
Diversity
Finance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Calling all GI Actuaries looking to move into contracting

England, London
£700 - £1000 per day
Reference
146169

A chance to gain capital modelling experience.

London, England
£70000 - £110000 per annum
Reference
146168

Capital Contractor GI

England, London
£700 - £1000 per day
Reference
146166
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ