Personal Pension  

Chancellor’s pension changes achieves ‘the impossible’

Legal and General says the chancellor “appears to have achieved the impossible” as its research reveals a quarter of adults will save more in a pension following the radical changes announced in the chancellor’s Budget.

Legal & General asked 578 adults, who were already saving in a pension, whether they would save more following the removal of the requirement to buy an annuity.

One in four adults say they will save more. Among 18 to 24-year-olds almost half said they would save more in their pension.

Article continues after advert

Two out of every five 25 to 34-years-old said they would put more cash in their pot. However, an almost equal number in this age group said the Budget change will not encourage them to save more in a pension.

Across all age groups 24 per cent said the budget changes would encourage them to save more in their pension, which equates to around 10m people, L&G said.

Helen Buchanan, corporate managing director of marketing and distribution at Legal & General, said: “The positive response among young pension savers to the pension flexibility introduced in the budget is a fantastic result.

“The chancellor appears to have achieved the impossible and created a pension system that appeals to those under 35 who, until now, were the age group who tended to put off saving for their retirement.

“For the Department for Work and Pension’s automatic enrolment process there is also good news.

“The prime target for the campaign, the under 45s, appear to be ‘nudging’ towards saving in a pension. And it is encouraging to see indications that pension saving is now higher on the agenda for those aged 55 to 64 too.”