Pension Freedoms Archives - People's Partnership

Retirees are returning to work due to cost-of-living pressures – New Choices, Big Decisions research reveals

Some of the people who have decided to retire early in recent years are now returning to the workplace due to cost-of-living pressures, new research has revealed.

Leading workplace pension provider People’s Partnership¹ and asset manager State Street Global Advisors² have today released the latest New Choices, Big Decisions³ study, which shows that some early retirees have either been forced back into work after realising their savings weren’t enough or simply because they were bored of retirement. The latest instalment of the longitudinal study, which has followed the journey of a group of savers up to and into their retirement since 2016, focuses on those who have re-joined the workforce.

The study shows that these re-joiners tend to return to the jobs market either part time or on flexible hours in low-stress roles and prefer to work close to where they live. Although these older workers want the structure and a sense of value that work brings, their new jobs are often very different to their previous careers.

The Office for National Statistics (ONS) latest labour market figures⁴ show that the number of older people returning to the workforce remain above their post-pandemic low.

One of those who took part in the research, Josephine, originally retired early due to ill-health but returned to work once interest rates began to rise in 2022. She said: “You always think: well I’ve got a little bit of money put aside, and that’s okay. I’ll use that for a rainy day. But that rainy day came sooner than I thought. And it wasn’t for a holiday, it wasn’t for something pleasant. It was just to survive. I thought: ‘I can’t continue doing this otherwise I’m going get myself in a lot of trouble’. I didn’t want to take more from my pension as it wouldn’t last me very long.”

The New Choices, Big Decisions research also highlighted the importance of the State Pension to those with private retirement savings, with some of those who took part in the study admitting they had to appreciate its importance, having originally dismissed it as a ‘pittance’.

Phil Brown, director of policy at People’s Partnership, provider of The People’s Pension to more than 6.5 million people, said: “The fact that an increasing number of early retirees are returning to the workplace suggests that some have realised that their pension savings won’t stretch as far as they had hoped. It’s a reminder of how important retirement planning is and that so many savers need support when it comes to how they access their pension pot.

“The research also shows us how important the State Pension is to so many retirees, some of whom had previously assumed that it wouldn’t provide them with enough income. In reality, the State Pension makes up a significant proportion of retirement income for those with a private pension.”

Alistair Byrne, head of retirement strategy at State Street Global Advisors, commented: “This wave of research takes place in a very different economic environment, with a cost of living crisis created by high inflation and markedly higher interest rates forcing retirees to rethink their approach. The results reinforce our view that for many people, a guided retirement income product that provides flexible access to the pot in the early years of retirement, along with a stable, guaranteed-for-life income in the later years, will be a valuable approach.”

Previously published findings from the study revealed that retirees still aren’t considering the impact that inflation has on their pension savings. The report recommends that stress testing planning tools offered by financial service providers should provide a greater focus on inflation protection. It also says that pension providers should look to strengthen the information they provide on inflation in their customer information and education resources.

ENDS

Notes to editors

People’s Partnership provides The People’s Pension, the largest independent master trust in the UK, serving more than six million pension savers across the UK and manages £25bn in assets. As a business without shareholders, it reinvests its profits with the aim to help customers and achieve better financial outcomes for everyone.
For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. As pioneers in index and ETF investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth-largest asset manager* with US $4.13 trillion^† under our care.

*Pensions & Investments Research Center, as of 12/31/22.

^†This figure is presented as of December 31, 2023 and includes approximately $64.44 billion USD of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.
The latest New Choices, Big Decision research, can be found here
Labour Market Overview data from ONS here

Retirees still caught off guard by inflation impact – early findings of unique longitudinal study reveal

Almost a decade after the introduction of Pensions Freedoms¹, new research has revealed that retirees still aren’t considering the impact that inflation has on their pension savings.

Leading workplace pension provider People’s Partnership² and asset manager State Street Global Advisors³ have today release early findings of New Choices, Big Decisions study, The research reveals that despite having experienced the pressures of rising cost of living, people who retired years ago still don’t factor in inflation when accessing their defined contribution pensions, meaning their savings might not go as far they had anticipated.

The latest instalment of the longitudinal study, which has followed the journey of a group of older savers up to and into their retirement since 2015, recommends that stress testing planning tools offered by financial service providers should provide a greater focus on inflation protection. It also says that pension providers should look to strengthen the information they provide on inflation in their customer information and education resources.

The report, which is due to be published in full early next year, highlights concern about the lack of attention given to the 1.1 million⁴ pension pots already in drawdown. It highlights that certain savers may receive inadequate communication about whether their previously made investment choices are still appropriate today, taking into account changing economic conditions.

The publication of the report coincides with the launch by People’s Partnership, which provides The People’s Pension to 6.5 million savers of a new online retirement planner⁵which will enable its members to work out how much money they may need and could have in future.

Phil Brown, director of policy at People’s Partnership, said: “This unique study shows that people don’t necessarily make the right choice and, without support, they tend to develop an inflation “blind spot” in their retirement planning. We mustn’t forget that the recently retired vividly remember interest rates at 15% and above in the 1970s and early ’80s, yet many still don’t factor in inflation when planning their finances. This vital research underlines the need for savers to have access to retirement planning tools and products which factor in inflation and highlight the risks that poses to savings. There is a real danger that some retirees will have less in their pockets over the longer term than they had first anticipated,

“These findings are further evidence that the average saver, especially those in their sixties and seventies, require more support when it comes to accessing their retirement pots, especially those who entered into drawdown before the economy experienced its current challenges.”

Alistair Byrne, head of retirement strategy at State Street, added:

“Our research underlines the challenges individuals face when making decisions about how to access their pension pots. It’s clear they need more support from the industry, and access to well-designed solutions that deliver a balance of flexibility in early retirement and life-long income in later life.”

CASE STUDY

Retired London cab driver Laurence Collier, 74, from North London is one of the 50 savers to have taken part in New Choices, Big Decisions. Although he has four pensions and describes himself as comfortable in retirement, he admits he regrets not seeking professional advice at the time.

He says: “Probably one of the biggest mistakes I made was not building in protections against inflation in when I decided how to take most of my pensions – I only have one where I haven’t been affected by inflation. I didn’t think it through, and I wish I had taken proper advice as I didn’t go to a financial adviser.

“Although I’m in a good financial position, it would have been nice to have been better protected against inflation – that would’ve been the cherry on the cake.”

ENDS

Note to editor

Pension Freedom and Choice were introduced in 2015, click link here
People’s Partnership provides The People’s Pension, the largest independent master trust in the UK, serving more than six million pension savers across the UK and manages more than £22bn in assets. As a business without shareholders, it reinvests its profits with the aim to help customers and achieve better financial outcomes for everyone.
For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of index and active strategies to create cost-effective solutions. And, as pioneers in index, ETF, and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s fourth-largest asset manager* with US $3.69 trillion† under our care.

*Pensions & Investments Research Center, as of 12/31/22.†This figure is presented as of September 30, 2023 and includes approximately $58.13 billion USD of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated. Please note all AUM is unaudited.

4. Ignition House analysis of the FCA Retirement Income Market data https://www.fca.org.uk/data/retirement-income-market-data-2020-21#:~:text=fully%20encashed%20plans.-,Key%20findings,to%2060%2C383%20in%202020%2F21

Pension savers need more support from the industry before making big decisions

Older retirement savers need far more support from the pensions industry before making the “huge” decision about how to best use their savings pots, according to B&CE¹, provider of The People’s Pension.

Speaking at the PLSA Annual Conference in Liverpool, Phil Brown, Director of Policy at B&CE, which supplies pensions to nearly six million people or 1 in 5 UK workers, said that current decumulation options favoured by pension companies meant that millions of ordinary workers were faced with complex decisions that many aren’t qualified to make.

He said that the unique longitudinal study, ‘New Choices, Big Decisions’², that The People’s Pension first commissioned following the introduction of Pensions Freedoms in 2015³, should be seen by the industry as evidence from which it can offer consumers alternative retirement solutions, such as pseudo-default retirement products.

He also challenged the industry to do more to help consumers not only make decisions on how to make their Defined Contribution savings last throughout retirement, but also to provide clearer details, so they are better informed before transferring their pension pots.

Mr Brown says: “After buying a home, how to use their defined contribution pension savings is the biggest decision many people will make – it’s huge. Through automatic enrolment we hold people’s hands and put them in pensions when they join companies, but then assume that they will be super engaged and make complex retirement choices that will impact their retirement for 30 or more years.

“The reality is that to make informed retirement choices, consumers need to be part financial adviser, part fund manager, part economist, part tax accountant, part doctor and maybe part futurologist. When somebody buys a house, we don’t expect them to do the property conveyancing, yet when it comes to what to do with their pension pots, we expect them to navigate an even more complicated area, despite not being equipped with the rights skills.

“Our ‘New Choices, Big Decisions’ research showed that many savers run out of money in retirement because they don’t understand either their own longevity or the impact inflation has on those savings.”

He has also called for pensions dashboards, which are due to be introduced in 2023, to display a scheme’s value for money credentials at the earliest opportunity.

He said: “The pensions transfers market is creating member detriment as members are, in some cases, using the wrong sort of information to make transfer decisions. It’s crucial that savers are aware of the impact of charges when brand or other factors are the main driver behind a transfer. We need to change the discussion to one about ‘Value for Money’ and dashboards must display this information as soon as possible to prevent poor decision making that is detrimental to member’s retirement outcomes.”

ENDS

Notes to editors:

B&CE is a not-for-profit organisation, which provides The People’s Pension, a leading workplace pension scheme, serving nearly six million pension savers across the UK. With no shareholders, it uses its profits to help people build financial foundations for life.
New Choices, Big Decisions is in-depth research by consultancy Ignition House explores both retirement planning and spending habits following the introduction of freedoms in 2015. The report can be found here
Pension Freedom and Choice were introduced in 2015, click link here

Impact of part-time work on women’s pensions – study

More must be done to ensure women choosing between full and part-time work are made aware of the potential impact on their pensions

Part-time female workers in their forties and fifties could benefit from information from pension companies explaining what the impact of working either a day or two extra a week would have on their pension savings, according to latest research.

Findings contained within the New Choices, Big Decisions study¹, which was commissioned by leading workplace pension scheme The People’s Pension² and asset manager State Street Global Advisors³, provides further evidence of the impact of the gender pensions gap⁴. Responsibilities, such as looking after children, meant some of the women interviewed for the study had reduced their working hours early in their careers, and retained this work pattern after their circumstances changed enough for them to consider increasing their hours. Of those interviewed, women were more likely than men to be in part-time work both at retirement and in the lead up to it.

The report recommends that the workplace pension industry should explore the possibility of getting information to women who work part-time, in their mid-40s and beyond, setting out the ramifications of not having up to an extra two days a week of work on the size of their pension pot.

Calculations by The People’s Pension reveal that a woman who chose to return to full-time work aged 42 after 14 years of working part-time could be as much as £1,224 a year better off in retirement than a woman who stopped working at 28 and continued part-time hours throughout her career⁶. The new state pension will provide £9,110 a year in retirement.

Phil Brown, the director of policy and external affairs at B&CE, the provider of The People’s Pension, said: “This latest research is further evidence of just how stark the gender pensions gap is. The New Choices, Big Decisions study has given us genuine insight about how people save and plan for their retirement and there are sobering examples of women who now regret that they didn’t fully consider what impact that sustained periods of working part-time would have on them in retirement.

“We in the pensions industry could look to do more to see how women might receive information about how to increase what they save.”

“But it’s important to recognise that the gender pensions gap cannot be bridged by individuals acting alone, even if they get more information from the pensions industry, as it requires the Government to do more to enable women to return to their roles or work more hours once they have children. One of the main ways of doing this would be the provision of better, more affordable childcare.”

ENDS

Notes to editors

The latest New Choices Big Decisions was published in January this year and is based on research by the consultancy Ignition House. The new research centres around interviews with 50 savers, including 30 people who took part in the first study in 2015, who are either approaching retirement or have already finished their careers. The report is available here
The People’s Pension is a leading workplace pension scheme from the not-for-profit B&CE Group, with more than five million pension savers from over 90,000 employers and £13 billion assets under management.
About State Street Global Advisors: For four decades, State Street Global Advisors has served the world’s governments, institutions, and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s third-largest asset manager US $3.15 trillion* under our care.
A study by Prospect the union in 2019, estimated that the average female pensioner is about £7,500 a year worse off than a man the same age. According to the Chartered Institute of Insurance (CII), by the time a woman is aged 65 to 69, her average pension wealth is £35,700, roughly a fifth of that of a man her age.
This assumes both women have a salary of £30,000 and they begin saving at the age of 22 and retire at the age of 68. Contributions are 8 per cent per annum, investments grow at 5 per cent and inflation is 2.5 per cent. The total pots are discounted so that the value is set out in real terms i.e. in today’s money.

New Choices, Big Decisions: Pensions Personalities Revisited

Following on from the most recent study in the series which explores savers’ retirement planning and spending habits after the introduction of pensions freedoms in 2015, this follow-on report looks at the seven personalities in more detail.

The ‘New Choices, Big Decisions’ series explores the evolution of consumer decision making and behaviours under Pension Freedoms – as well as its impact on retirement planning and spending habits. In this latest report, we assess how our brave pension pioneers have been getting on in the five years since new freedoms changed the way people think about their pension money.

The respondents in our research had their own unique priorities, beliefs and preferences, but common themes and traits were also evident across these groups. We revisited seven pension personalities, from the Procrastinating Petes and Paulas, who were overwhelmed by the task at hand, to the I can Do Better Colins and Clares, who’d lost all faith in pensions and would rather have the money in their control.

Five years on, they’re no better informed about the risks they face if they don’t want to buy an annuity. They’ve not been using the time to build the skills needed to make good decisions, nor are they seeking appropriate support. There’s a range of behavioural biases at play which have resulted in them sleepwalking into full retirement with very limited financial plans.

Download our ‘New Choices, Big Decisions: Pension Personalities Revisited’ report

Download our ‘New Choices, Big Decisions: Pension Personalities Revisited' report

Retirement poll reveals desire for trusted guidance

Survey reveals that pension savers want trusted guidance to help them secure a good retirement

Three quarters (75 per cent) of UK adults who have a pension say that they would consider taking guidance about how to make their savings last throughout retirement from a pension provider with a legal duty to put their interests first, a new survey has revealed.

The YouGov¹ survey was commissioned by leading workplace pension provider The People’s Pension², following the publication of the ground-breaking New Choices Big Decisions³report earlier this year, which, based on extensive interviews, found that many older savers are sleepwalking into retirement and run the risk of running out of pension savings years before they die. This study was first launched following the introduction of pension freedoms⁴, which has meant that individuals either must make a choice between a variety of financial products to finance their retirement or withdraw their pension savings.

The survey presented respondents with a selection of options for spending their pension savings during retirement. It found that nearly four in ten (37 per cent) of those who are saving for retirement would be prepared to be guided towards taking a pension that was split between giving them a guaranteed regular income (an annuity) and the rest as a flexible income pot (drawdown) after taking the tax-free lump sum up-front. A further 35 per cent chose a guaranteed regular income (an annuity) only option after taking the tax-free lump sum.

The survey also highlighted how unprepared for retirement planning many people are:

More than a third (35 per cent) don’t know when they will retire. For those aged 55 and over, more than a fifth (22 per cent) are uncertain of when they will stop working.
Just over one in ten (12 per cent) knew or guessed the weekly value of the UK State Pension⁵. This knowledge is as low as three per cent for 18-24 year olds and is only as high as 25 per cent for those aged 55 and over.
Just under half (48 per cent) said they don’t know how long their retirement savings will need to last them, including 45 per cent of those aged 55 and above.
Nearly three in ten (28 per cent) of everyone surveyed, say they have no idea what to do with the savings they have built up for their retirement.

Phil Brown, the director of policy and external affairs at B&CE, the provider of The People’s Pension, said: “This latest research provides further evidence that pension savers are crying out for guidance about how they should approach retirement. It’s clear there is an opportunity for the industry and master trusts are well placed to meet it.

“Master trusts have an opportunity to develop the retirement products which will meet the needs of many for security as well as providing flexibility. This means a coming of age for well-governed auto enrolment schemes – as they move from being saving vehicles for employees to also providing their pensions in retirement.”

ENDS

Editor’s notes:

All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,116 adults. Fieldwork was undertaken between 12th – 15th February 2021. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
The People’s Pension is a leading workplace pension scheme from the not-for-profit B&CE Group, with more than five million pension savers from over 90,000 employers and £13 billion assets under management.
The latest New Choices Big Decisions report was published in January. See the report here: https://thepeoplespension.co.uk/media-centre/policy-research/new-choices-big-decisions-5-years-on/
Pension Freedom and Choice were introduced in 2015. Click here for more information
The value of the full new UK State Pension is £175.20 a week. Respondents giving a value of between £165 and £185 were considered to be within range of the correct figure.

Latest New Choices Big Decisions report published

Pensions ticking timebomb: study reveals savers sleepwalking into retirement six years on from Pensions Freedoms

Nearly six years on from the introduction of Pension Freedoms¹, new research has shown that older savers are sleepwalking into retirement and risk running out of all their Defined Contribution pension savings with a third of their retirement still ahead, meaning they could spend their final years reliant on the state pension.

Leading workplace pension provider The People’s Pension² and asset manager State Street Global Advisors³ have today published the latest findings of the New Choices, Big Decisions⁴ study, which examines both retirement planning and spending habits following the introduction of Pension Freedoms in 2015. The in-depth research by the consultancy Ignition House, reveals that people facing retirement want their pension provider to give them a safe guided path into retirement, rather than the complex array of decisions with which they are now faced.

The new research centres around interviews with 50 savers, including 30 people who took part in the first study in 2015, who are either approaching retirement or have already finished their careers. The study shows that, because pensions freedoms have compelled people to put together their own retirement solutions, 74 per cent⁵ of those interviewed are spending their pension savings at a speed, which at best, means they will run out of money in their mid to early 80s, even though many will live into their 90s.⁶

The research reveals how policy makers and the industry have built a system that could only work effectively based on unrealistic assumptions as to how people behave. The work by Ignition House maps out the massive discrepancy between expert assumptions and actual behaviour.⁷

Key findings include:

Savers are scared of planning for the future as they don’t want to discover the ‘truth’
They underestimate the financial risk of growing old and don’t understand how inflation can impact their savings
The typical saver follows the path of the least resistance – they won’t leave a product or change a drawdown withdrawal rate once they have signed up

Phil Brown, Director of Policy and External Affairs at B&CE, the provider of the People’s Pension said:

“This research shows why policy makers must require pension schemes to guide members to products which match retirement risks, including living longer than they had planned for, and which will ensure that DC pension savers have an income throughout their retirement. There is evidence that a significant number of people are sleepwalking into retirement and will have a worse quality of life in later years than could have been the case if they had been guided. People would be dismayed to arrive at a car dealer’s forecourt to buy a car, be presented with a selection of parts and told to a pick a selection and build their own vehicle, so why do we expect pension customers to do exactly this?

“This report fills a big gap in our understanding of how pension freedoms are working in practice.”

Alistair Byrne, of State Street Global Advisors said: “This research shows clearly the very many challenges that older savers face when making a decision about their pensions. People struggle to see beyond the near-term future and cannot always access the type of advice and support they would like. As an industry we need to continue simplifying what we offer, providing guidance and support, and easy paths to follow, whether we call them ‘defaults’ or not.”

ENDS

Editor’s notes

Pension Freedom and Choice were introduced in 2015, click link here
The People’s Pension is a leading workplace pension scheme from the not-for-profit B&CE Group, with more than five million pension savers from over 90,000 employers and £12 billion assets under management.
About State Street Global Advisors For four decades, State Street Global Advisors has served the world’s governments, institutions and financial advisors. With a rigorous, risk-aware approach built on research, analysis and market-tested experience, we build from a breadth of active and index strategies to create cost-effective solutions. As stewards, we help portfolio companies see what is fair for people and sustainable for the planet can deliver long-term performance. And, as pioneers in index, ETF and ESG investing, we are always inventing new ways to invest. As a result, we have become the world’s third-largest asset manager US $3.15 trillion* under our care.

*This figure is presented as of September 30, 2020 and includes approximately $80.51 billion USD of assets with respect to SPDR products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

4. The full New Choices Big Decisions report is available here

5. This makes the findings of our sample similar to that which would apply to a much larger sample conducted by the FCA in 2020. This found that 71 per cent were withdrawing income at higher than a four per cent annual rate. This implies that they would likely exhaust their DC pension savings early. The true figure in our sample may be even higher than 74 per cent as 20 per cent of the sample either did not know their rate of drawdown or where they had not yet retired, did not know what rate they would select. FCA data is here: https://www.fca.org.uk/data/retirement-income-market-data

6. The source of this figure is Richard Willets, projection based on mortality rates for the population of England & Wales derived using CMI_2018 https://www.justgroupplc.co.uk/~/media/Files/J/JRMS-IR/documents/summit-docs/richard-willets-making-sense-of-the-slowdown.pdf

7. A diagram attached shows assumed actual behaviour attached.

For further information, contact Blaise Tapp, the media relations manager at The People’s Pension, on 01293 205336.

New Choices, Big Decisions – 5 Years On

Five years on from the introduction of Pension Freedoms, new research by The People’s Pension and State Street Global Advisors has shown that mature savers are sleepwalking into retirement. They risk running out of Defined Contribution pension savings and, with a third of their retirement still to come, could spend their later years reliant on the state pension.

In-depth research by consultancy Ignition House explores both retirement planning and spending habits following the introduction of freedoms in 2015. The study reveals that people nearing retirement want their pension provider to supply a safe, guided path into retirement – rather than the complex decisions with which they’re now faced.

The new research centres around interviews with 50 savers and shows how policymakers, and the industry as a whole, have built a system that relies on unrealistic assumptions around how people behave to work effectively.

Key findings include:

Savers are scared of planning for the future as they don’t want to discover the ‘truth’
Savers also underestimate the financial risk of growing old and don’t understand how inflation can impact their savings
The typical saver follows the path of the least resistance – they won’t leave a product or change a drawdown withdrawal rate once they have signed up

Download our ‘New Choices, Big Decisions: 5 Years On’ report 2021

Download our ‘New Choices, Big Decisions: 5 Years On' report'

Provider’s view on Government response to Freedoms report

The People’s Pension comments on Government response to the Work and Pensions Select Committee Report on Pension Freedoms

Commenting on the government’s response to the Work and Pension Select Committee’s Pension Freedoms report, Dave Brown, director of strategy and innovation at The People’s Pension, said:

“While we recognise the diverse needs of people when they reach retirement and back proposals to better help people towards information and guidance, we must accept that there will still be a large number of retirees who aren’t engaged. For these people, there is a clear need for a guided pathway in retirement, and we, like many master trusts, are currently working on the details of product design to help our members live comfortably once they retire.”

ENDS

Part 3 of New Choices, Big Decisions

As the 3rd report in the ‘New Choices, Big Decisions’ series, this study looks at a group of savers who accessed or considered accessing their pension savings in late 2015 and early 2016, following up a year later to see how their circumstances and perspectives have changed.

We contacted participants from the initial ‘New Choices, Big Decisions’ study to explore how their lives have changed over the past 12 months and to understand, with the benefit of hindsight, how they now feel about the choices they’ve made.

The research found that savers who accessed cash from their pension funds using the new pension freedoms don’t regret their decisions, believing the happiness generated from spending the money – on holidays, cars, home improvements and family – far outweighs any benefit from receiving it as a ‘paltry’ income in the future.

It also shows that even where savers are engaged with their pension, decision making can be challenging. Multiple sources of information on what to do can add confusion rather than making the picture clearer – and can lead to some savers just deciding to take action without necessarily thinking about the long term.

Download our ‘One year on: part 3 of New Choices, Big Decisions’ report

Download the full research report ‘Part 3 of New Choices, Big Decisions: exploring consumer decision making and behaviours under pension freedom and choice’