Pensioners need guaranteed income in retirement warn experts

Wed 14 Oct 2015

Most underestimate their longevity. But, flexible pensions herald new era of customer engagement.

Latest research from Equiniti, one of the UK’s largest pension service providers, shows that the pension freedoms introduced in April have contributed to a spike in interest in members’ engagement with their pensions. Over 50 of the UK’s leading pension experts were interviewed and almost two-thirds (64%) agreed, or strongly agreed, that the new flexibilities have helped members engage with their pension schemes more.

The research*, which is the sixth Annual Retirement Survey conducted by Equiniti, sought the views of professionals throughout the pensions and annuity industry.

However, 94% of respondents also agreed, or strongly agreed, that there was still the underlying need for a guaranteed level of income.

In addition, 86% of those surveyed thought that pension scheme members were underestimating how long they would live in retirement.

When questioned on whether they thought that the new majority Conservative Government would continue to support Pension Reforms in the interest of the consumer, 12% disagreed, or strongly disagreed, and over a third of the respondents (36%) were undecided.

Nigel Pearce, Life and Pensions Director, Equiniti, said: “Whilst the hype of the new pension freedoms has contributed to members engaging more with their pension, which is positive news, there are also concerns that people will underestimate their time in retirement and also struggle to get advice. There is also the overwhelming belief that pensioners will still need products that can secure guaranteed levels of income in retirement.”

ENDS


For further information, please contact:

Alban Maginness 
Equiniti 
Tel: +44 (0) 28 9073 5729 Email: Alban.Maginness@equiniti-ics.com

 

Notes to Editor :*About the Survey

The Annual Retirement Survey 2015 is the sixth such survey issued by Equiniti. It was carried out between 28 May and 22 June 2015, seeking the views of professionals throughout the Annuity industry, including product and service providers, retirement planning consultants, employee benefit consultants, regulators and influential bodies. For 2015, 50 responses were received from renowned annuity professionals and commentators within a one-month period.

 

Notes to Editor: About Equiniti

Equiniti keeps things running smoothly behind the scenes for some of the best-known brands and public sector organisations in the UK.

We specialise in providing finely-tuned finance and administration services, as well as smart technology solutions, in complex and regulated markets.

Our services are delivered by 3,500 employees across 29 office locations, enabling us to offer solutions that are flexible, adaptable and scalable.

We are acknowledged leaders in the pension services market and in the share registration market, where our clients include around half the FTSE 100.

Our mission is to make the complex simple.