This Pension Awareness Day, 15th September, Pension Wise is encouraging people to plan earlier for a comfortable retirement.
Pension Wise says that many people in the UK find pensions confusing and can be put off by complex language and paperwork, leaving their retirement plans to the last minute.
Previous research from national Citizens Advice shows that one in four people (27%) with a defined contribution pension feel they don’t understand their pension plan.
The research also finds people aren’t checking their pension, with just under a quarter of people (22%) not knowing how much was in their pension pot and almost one in six people (15%) checking their pension value less than every two years.
Staff have reported cases where people did not know the value of their pot or the number of pensions they had. In some instances, people have found lost pensions and increased their savings for retirement.
Following last year’s pension freedoms, people who are 55 and over now have more options on how to take money from their defined contribution pension.
The changes mean that for the first time you have the option to buy an annuity (a guaranteed income), take an adjustable income, cash in a lump sum or a mixture of these options.
In conjunction with Citizens Advice, face to face appointments of the government’s guidance service, Pension Wise, are delivered for free to people 50 and over with defined contribution pensions. They can get impartial information about their options.
One of the Pension Wise managers says that, “Pension Awareness Day is a great reminder that it’s never too early to start thinking about your retirement finances.
Many people don’t engage with their pension until it’s time to make a decision about their retirement. While retiring from work may seem far away we’re encouraging people to start making plans for their retirement savings.
The pension freedoms mean there are more options than ever before and our Pension Wise team can help get you on the right track to a financially secure retirement.”
To book a face to face or telephone Pension Wise appointment, call 0800 138 8292. Otherwise, you can visit any Citizens Advice to book an appointment.
