Half of Brits do not understand new pension rules

Caucasian man looking at paperwork in kitchen

A massive 47% of Britons have no real clue how the sweeping changes introduced to give people more retirement saving options will affect them, according to new research from online pension adviser Wealth Wizards.

And while 30% feel they have no one to turn to for advice on saving for retirement, more than one in four admit to feeling intimidated by pensions due to the complex jargon used by pension providers.

A huge swathe of the population may therefore miss out on the freedoms introduced last year, when the government scrapped the requirement for savers to buy an annuity with at least three quarters of their pension pots.

Andrew Firth at Wealth Wizards said: "Planning for your pension can be a confusing and sometimes daunting task, but it is something that we shouldn't ignore.

"It is concerning that such a large proportion of UK workers feel not only under informed about how their pension works but also that the help and advice they need is not readily available."

One of the issues is that employers are not providing the advice their staff require to make the right decisions about their retirement savings.

Even though many workers are concerned about their pensions, close to a fifth feel unable to tell their employers they are confused and one in five would rather admit to not grasping an element of their role than confess their lack of understanding about retirement savings.

Firth believes that online advisers can plug this gap. "Pension advice doesn't have to be expensive and it doesn't have to be difficult," he said.

"Technology has opened the door to accessible, affordable and regulated financial advice, so there is no longer any excuse for employers to fail to provide access to it."
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