You are here: Home - Retirement - Retirement planning - News -

70% say pension reforms won’t change retirement plans

0
Written by:
02/06/2015
Only a third of people believe the recent pension reforms will affect their retirement planning, a new study reveals.

Just 30% of respondents said the new pensions freedom rules, which came into force on 6 April, would change their plans for retirement income, according to the study by Schroders.

Respondents were also asked what they planned to do with their retirement income following the introduction of the pension reforms.

Of the people who said the reforms would impact their plans for retirement income, almost half (45 per cent) said they intended to take some money as cash and put the balance in an investment fund.

A third plan to invest in an income fund, 23 per cent said say they will keep the money in cash and 29 per cent plan to put the money towards a luxury purchase, such as a dream holiday. Some 28 per cent said they would use the money to pay off debts.

Of the remaining 70 per cent, who do not think the reforms will affect their plans for retirement income, 20 per cent said this was due to worrying about tax liabilities, 31 per cent said it was down to not knowing what decisions to make and not fully understanding the changes. 11 per cent did not have a pension.

“Surprisingly only 30 per cent believe the new UK pension reforms will have an effect on their retirement planning. This seems to be due to wide-ranging confusion about the tax implications and the choices available to them,” said Robin Stoakley, managing director, UK Intermediary at Schroders.

The investment possibilities for pre and post retirement are extensive and it’s important for people to understand what it means for them. Good financial planning and advice will help with this.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Dash for retirement cash slows as consumers take more time to explore options

Following an initial dash for cash following the introduction of pension freedoms in April, customers are taking more time to...

Close