This is despite 60.4% of the same survey sample intending to do so in April before the reforms went live.
The research has unveiled a 50% fallout between saver’s intentions and their actions in the three months since the launch of the reforms. The report also revealed that 18% of pensioners do not have a financial plan in place and are unsure about the best action to take.
Additionally, 21% intended to put the money into a savings account but only 3% have done so, while only 2% invested all or some of their pension compared to the 13% who planned to do so.
The divergence that stands between pension planners’ intentions and actions highlights a lack of consumer confidence, a shortfall that is significantly impeding the decisions of a population that - according to their financial intentions three months ago, welcomed the reforms with positive purpose.
Previous research commissioned by Avacade further analysing saver intention around the reforms revealed that 47% of pension planners cited a lack of understanding around the new freedoms as the main reason why they did not act on the changes. Further challenges ranged from a lack of funds, to a fear of running out of money in their retirement. Over one in ten UK pension planners did not feel they had received sufficient guidance in order to make a wise decision, with 13% concerned they will make an irrecoverable mistake.
Lee Lummis, CEO of Avacade commented:
“The disparity that stands between pensioner intentions versus their actual actions is shocking, and the reason behind this is something we encounter on a daily basis. The difference from 60% planning on taking out a cash lump sum to just 9% doing so highlights that the effect of the reforms is being hindered as many pension planners are confused by the changes and cannot decide the best route to achieve their pension objectives.
"We work with the critical mass of the UK workforce, people that have worked relentlessly their entire life, yet simply have not had the capacity to prioritise later life planning due to present-day commitments. The majority simply do not have plentiful savings, put away years in advance, and therefore fear any financial action that could hinder what they already have. The findings of the research highlight a public that requires strategic support to navigate the pension deficit the majority are heading towards.”
