PensionsAug 29 2014

Budget drives Sipp awareness amongst younger generations

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Awareness of self-invested personal pensions among those aged 18-24 has increased by 56 per cent since the March 2014 Budget, according to new research from provider Suffolk Life.

Prior to the chancellor’s reforms only 18 per cent of 18-24 year olds had heard of a Sipp, with this number increasing to 28 per cent post-Budget.

The first survey took place mid-March with 2,053 UK adult respondents and the second survey was carried out at the end of July with 2,027 UK adults, with results showing that 45 per cent have now heard of Sipps.

However, the survey also revealed that over a third of those surveyed thought that the government will ultimately bear responsibility if overall retirement provision does not increase in the general populous.

Prior to the Budget pensions reforms, the majority of respondents felt that the burden would fall on individuals.

Despite the removal of compulsion to buy an annuity, only 29 per cent of those surveyed now believe that the general public would shoulder the consequences of a failure to save, compared to 34 per cent earlier in March.

Greg Kingston head of marketing and proposition at Suffolk Life, commented that it is encouraging to see consumers taking an interest.

“However, our research shows there is still work to be done to ensure retirement saving is front and centre in people’s minds and that savers understand that responsibility is shifting from the state to the individual.”