Nearly half (46%) of respondents admit they have not had enough guidance to make the best decision on their pensions, while TD Direct Investing described retirees' confidence as "plummeting", with 48% of respondents saying that they no longer trust the industry.
Despite 46% of respondents over 30 saying they have not had enough guidance to make the best decision on their pension, 2 in 5 (40%) plan to withdraw part or all of their pensions once the pension reforms come in.
The research found that people are favouring property over pensions, with 50% of respondents (and 60% of Londoners) still confident their property will support them in later life.
The research also reveals some interesting discrepancies between genders and how they consider their pensions. Women tend to be more risk adverse than their male counterparts, with only 34% of women planning to dip into their pensions fund vs 44% of men. Women also appear less likely to squander their pension: less than a quarter of women (24%) intend to cash in their pension to go on holiday, whilst a third of men (33%) plan to use it to this end.
The older generation plan appear readier to take advantage of the new pension changes with almost 1 in 5 (19%) claiming that they would at least consider withdrawing over 70% of their pension, whilst only 8% of 30-44 year olds intend to do the same.
Carl Howard, Commercial Director at TD Direct Investing, said:
“It is clear that there is a real need for unbiased and coherent support for pension holders. If this worrying divide between the UK’s savers and the pensions industry means that people are not making the best decisions for their financial futures, then we need to work together with the government to solve this. It is up to us in the investment industry to work on overcoming pension holders’ concerns, and offer the transparency and guidance they will need to again have trust.
“Whilst it’s important for pension savers to feel confident in their choice of investment, it’s easy to become blinkered when considering long-term sources of income. This is where the investment industry has an important job to do in educating the investor on the range of choices available and supporting them in making their decisions.
“Ultimately, the pension reforms will benefit the UK’s savers as it gives them more freedom over their finances and more choice. As an industry, we have a responsibility to pension holders to provide them with the necessary information and the right support to help them make their decisions. However, at the end of the day, we have to respect that the choice lies with them.”
