‘Resolve the UK pensions muddle’ demands US insurer
Four out of five people find the Government’s policy on pensions confusing, with 44% finding it very confusing indeed, according to a poll undertaken by YouGov for The Hartford, an American insurance company.
Of equal concern is the fact that 60% of people remain unaware of the reforms made to the pension arena on A-Day, which were designed to simplify the system and encourage more people to save more money for their retirement.
“UK pensions are still shrouded in confusion and they really shouldn’t be,” said Michael Kalen, president and chief executive officer of The Hartford.
“For example, our poll found that only 2% know that you can save up to a ceiling of £215,000 into your pension in any one tax year.
“Moreover, the 60% who are unaware of the changes made by A-Day are missing out on some pretty empowering legislation for people when it comes to their pensions.”
The main changes introduced by A-Day on 30th April last year permitted people to save into a company pension and a personal pension at the same time; to draw a pension and carry on working; and to invest 100% of their earned income in any tax year, up to the £215,000 limit.
“The time has come to resolve the UK pensions muddle and to explain people’s options to them in a clear and concise way,” continued Kalen. “With people living longer than ever it’s crucial that people are encouraged and advised to make the right retirement decisions.”