Pensions ‘causing confusion and unconfidence’
About 70% of people making saving and investment provision into their pensions do not trust the Government on pension reform, and millions say they are less confident about saving for their future than they were five years ago, according to financial services company MetLife.
MetLife said that confusion about current pension legislation was a big drawback in people’s saving and investment intentions regarding their pensions, with 25% of respondents now less likely to invest for their retirement.
MetLife research also showed that two-thirds of UK adults aged 18 or over – equivalent to 31 million people – believe that Government attempts to simplify pensions on A-Day have not delivered on their promises.
People aged 45-54 and 55-64 are most concerned about their pension saving and investment, with 74% of the former group and 70% of the latter saying that reforms have been “unconvincing”.
About 42% – or 19.9 million people – feel less confident about saving for their retirement compared with five years ago.
Eugene Marks, senior vice-president for regional operations at MetLife, said: “The introduction of of pensions simplification on A-Day last year was a landmark for the UK pensions industry and the Government should be commended for what it has done.
“However, since then there has been uncertainty about the details of the legislation and it is no surprise that confidence has been hit.”
He concluded: “It is time to move on to the next stage, with the pension industry and the Government working together to rebuild lost confidence.”