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Consumer confidence in pensions wanes

Consumer confidence in pensions wanes

Category: Pensions

Updated: 22/03/2013
First Published: 22/03/2013

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 It is now over 6 months old so the content may be out of date.

Over a third of people in the UK have less confidence in their pension today as a result of changes within the sector last year, according to a survey by Friends Life.

A review of the pensions industry during 2012, including auto-enrolment in work pensions schemes and gender-neutral product pricing, has also increased disarray amongst consumers with 36% of respondents claiming they were confused as to how the changes affected them and their retirement savings options.

Savers aged over 55 were found to be the least optimistic, with just 3% having confidence in their retirement prospects.

Worryingly, over a quarter of people (28%) said they were completely unaware of any changes occurring. Over 40% were only aware of some of the changes.

Within its Budget this week, the Government pledged to simplify the pensions market with the introduction of a single tier system in 2016, although these latest findings may suggest the implementation should occur sooner.

Managing director of corporate benefits at Friends Life, Colin Williams, said: "Some consumer confusion following these changes is understandable given their extent.

"What is crucial is that both the industry and Government improve communication around the changes and that we ensure there is some legislative stability for these changes to fully bed in."

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