Although UK pension savers have low levels of knowledge about financial matters, confidence in retirement planning has increased year-on-year, research by State Street Global Advisers has found.
Nigel Aston, head of SSGA’s DC business in Europe, said: “We are encouraged to see that confidence in pension schemes is rising in the UK in line with a wider global trend.
“A stronger economy is a key factor, with other factors including the introduction of auto-enrolment and pensions freedom.”
Out of 1,000 workers surveyed in the UK, for the 2015 Global Monitor study, 43 per cent of DC members said they felt confident about meeting their retirement goals – an increase from 24 per cent in 2013 and 12 per cent in 2012 – while 54 per cent rated themselves as satisfied with their retirement investments.
According to the results, 47 per cent of DC members felt they had sufficient information from their employer or provider to make informed decisions, compared to 55 per cent in the US and 35 per cent in Ireland.
Adviser View
Nick Evans, financial planner at Hertfordshire-based One Life Wealth Planning, said: “It is great news that, through a combination of new pension freedom rules and the introduction of AE, people are keener than ever before to save into pensions.
“The danger now is that pension funds become associated with a fund to be spent as desired as opposed to a fund that should be used to provide income over an unknown life expectancy.”
