Many Britons are more actively thinking about pension planning as a result of the pandemic, a new study has found.
According to research by NerdWallet, one in four people are thinking more carefully about retirement following the coronavirus outbreak, the subsequent lockdowns and the financial pressures these have created.
Savers Lack Confidence on Pension Planning
While the increased focus on pension planning is undoubtedly a positive to emerge from the pandemic, a long-standing problem remains, with the survey showing many people lack the confidence to manage their own pensions.
Some 75 per cent of those polled said they could only do so if they had professional help and advice, partly because the industry uses too much jargon.
In fact, 25 per cent said specialised terminology and language used by pension providers made them feel pension planning was difficult to understand.
The findings were clear that any people would like a simpler way to view their pension details.
Consumers Want Online Dashboard to Help Pension Planning
Nearly one in three people believe an online dashboard, similar to those used by banks, would make pension planning simpler for them.
Here at Creative Pension Trust, we offer you access to the Creative Pension Trust Member Portal that lets you take control of your pension planning and understand where you’re up to quickly and easily. For example, you can:
- See your pension savings balance
- Combine your old pensions
- Change your investments
- Generate statements
We’re also planning to introduce new tools in 2022 to help members with financial planning and understanding where they are on their road to retirement. We’re looking forward to sharing these with you over the coming months.
Many Savers Don’t Understand Pension Basics
Another worrying aspect of the study was that many people don’t know or understand some of the most seemingly straightforward aspects of pension planning.
For example, 64 per cent of respondents admitted they’re not sure just who their pension provider is.
Meanwhile, 83 per cent of people with a pension revealed they didn’t know how much money they should be paying in to make sure they have the amount they want to live off in later life.
Many blamed their pension provider for their lack of understanding, with 78 per cent saying they didn’t think they’d been given enough information to manage their pension as well as they could.
Furthermore, only 30 per cent believe the details of their workplace pension had been communicated clearly by their employer.
For all the above reasons, we’ve created our Member Help Centre, which answers many common questions in a clear and easy to understand way. We’re proud to be doing our bit to make sure Creative Pension Trust members can get the help and guidance they need as they make major financial decisions that will affect the rest of their lives.
But sadly, many people still aren’t getting the advice that’s available to them.
Eight in ten respondents admitted they’d not sought independent financial advice on retirement planning.
And worryingly, nearly nine in ten said they’d be more likely to get professional advice on other aspects of their finances, such as car finance or a mortgage, than they would for their pensions.
That’s why it’s so important to remind people that the help and guidance they need is available.
The world of pensions can seem complicated and confusing, which is why we at Creative Pension Trust want to make it as simple and straightforward as possible.
Visit our Member Help Centre to find out more about any aspect of your pension. Alternatively, you can find a copy of your plan guide in the Creative Pension Trust Member Portal.