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Lack of confidence in pension savings pots

Lack of confidence in pension savings pots

Category: Annuities

Updated: 20/06/2013
First Published: 12/06/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Frank Sinatra once said "regrets, I've had a few", and his sentiments appear to be echoed by many people planning their retirement at present.

A survey by the annuity and insurance provider, MetLife, has found 12% of people aged 45 and over in the UK wish they hadn't bothered to save for their retirement, as enthusiasm in the savings and investment markets remains low.

Almost three-quarters (73%) of savers said they lack confidence in the stock market's ability to meet their income needs and aspirations, whilst a further 38% of investors would consider taking out a guarantee on their pension funds in order to protect their capital.

An encouraging 47% of people claimed they were happy that they had invested in their futures, but held strong reservations about their final income upon retirement amid the current market conditions.

Managing director of MetLife UK, Dominic Grinstead, said: "Long-term equity investment remains the most effective way to provide an income in retirement but it is also clear that the events of the past five years have hit confidence and undermined faith in pension saving.

"The retirement income industry has to work harder to rebuild confidence and our research shows that guarantees which are affordable have an important role to play in ensuring that people do not end up feeling they have wasted their money," he concluded.

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