On 2nd March Prospect welcomed a stellar panel of speakers to discuss the future of savings and pensions in the UK. Bringing together experts from industry and parliament, we asked how can people save enough for their future during a time of uncertainty and what can be done by pensions providers and government to help people make the best possible choices for their retirement planning.
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.
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.
What do pension schemes need to offer to meet the risks of retirement and how do we better enable savers to understand and access those solutions?
Speakers:
• Baroness Drake, Chair
• Nigel Mills MP, Member of the Work & Pensions Select Committee
• Janette Weir, Founder & Director, Ignition House
• Phil Brown, Director of Policy and External Affairs, The People's Pension
• Alistair Byrne, Managing Director, Head of EMEA Pensions and Retirement Strategy, State Street Global Investors
This event was kindly supported by The People’s Pension
