Half of UK consumers find information around pensions and retirement overwhelming, and more than two in five (41%) admit they have no idea what to do with it, new research by Standard Life has revealed.
Standard Life’s ‘Retirement Voice’ study found that over the past 12 months, consumer confidence has been affected by high inflation, rising interest rates and unsettled markets. The findings showed that people’s confidence in making financial decisions has fallen from from 63% in 2022to 59% in 2023. As a result, 83% of people now believe financial advisers are a useful source of support, rising from 73% last year.
Similarly, 76% say speaking with their pension provider or reading information on their pension provider’s website has been helpful, up from 70% the previous year, while 69% think this about their employer, up from 62%.
The research showed that most people want information on how much money their pension will give them in retirement (47%), followed by an understanding of how much money is in their pension pot (36%). Meanwhile, a third (32%) want information on how to make sure they’re paying enough into their pension.
When looking for guidance on pensions and retirement planning, Standard Life said the majority of people turn to their pension provider’s website, with 41% looking at least once a year. A slightly lower amount (39%) turn to friends and family and the internet (39%).
Jenny Holt, managing director for customer savings and investments at Standard Life, said the research has shone a spotlight on the current advice and guidance gap in the UK.
“The benefits of planning for the future and getting the right support at the right time is clear, but currently financial advice can seem inaccessible, and the existing system doesn’t allow providers to give personalised guidance that considers individual wants and needs. The Financial Conduct Authority has opened a consultation into broadening access to financial advice, which is welcome, and we’d like to work with the government, regulator and our industry peers to create an environment where consistent, high quality and accessible guidance and advice can be provided.”
Holt said it was also important to find new ways to get more people to actively engage with their pension savings and planning for the future.
She added: “Making it easy for people to understand what they have, what it’s worth and what it might provide in retirement will be key to helping people make better financial decisions. It also needs to be easy for people to access the information and support that they need. For example, communications from employers around retirement savings that are regular, targeted and relevant is a great way to boost engagement and supporting employees with wider financial wellbeing can have a positive knock-on effect on preparedness for retirement.”
