Almost half of UK consumers find pensions information daunting
In an era where the cost of living is threatening to undermine consumer confidence, it’s no surprise that almost half of UK consumers find pensions information overwhelming. It can be difficult for individuals to make informed decisions about their retirement planning when faced with such a daunting task.
New research has revealed that half (50%) of consumers feel overwhelmed by pension and retirement information, and more than two in five (41%) do not know what to do next once they receive it[1].
Consumer confidence
In the past year, households have been affected by high inflation, rising interest rates and volatile markets. This has taken its toll on consumer confidence and self-belief, with only 59% feeling confident when making financial decisions, down from 63% in 2022. In response to this uncertainty, more people are turning to outside sources for help.
Today, 83% of people view obtaining advice from financial professionals as an important source of support, compared to 73% last year. Pension providers or information on pension provider websites (76%), pension provider literature (72%) and employers (69%) have also all seen an increase in people who find them helpful for retirement decisions.
Sound financial decisions
People primarily require information about their pension and retirement planning in order to make sound financial decisions.
This includes understanding how much money their pension will provide upon retirement (47%)
The amount of money currently in their pension pot (46%)
Ensuring enough funds are being contributed (32%)
Source for guidance
Pension provider websites have become a popular source for guidance, with 41% of people visiting them at least once a year. Other sources include asking friends and family (39%) or surfing the internet for advice (39%). Those who have workplace pensions often look to their employer (33%) or colleagues (29%) for guidance.
Planning for retirement is essential to ensure that your financial future is secure. That’s why it’s really encouraging to see from the research that 93% of those with lower incomes who have taken control of their finances report enjoying retirement, compared to just 66% of those without a retirement plan. Worryingly, however, despite this, 72% are doing nothing to prepare for later life.
Source data:
[1] Boxclever survey conducted among 6,000 UK adults in order to gain insight into the nation’s attitude to financial advice. Fieldwork for the study was conducted between 6 September and 16 October 2022. The data was weighted post-fieldwork to ensure results remained representative of the nation across key demographics. For comparison, Boxclever also surveyed 4,896 UK adults during 16- 23 July 2021.
