A report published today by The Pensions Policy Institute, partly sponsored by the Association of British Insurers (ABI), examines the evolving retirement landscape in the wake of the pension reforms in April 2015. Among the findings, it reports that more than half (54%) of people approaching retirement have defined contribution savings pots of less than £9,500, meaning their ability to make use of the pension flexibilities will be limited. Some will instead rely on defined benefit pensions, housing wealth or a partner’s income, or the State Pension.
Rob Yuille, Head of Retirement Policy at the ABI, said:
“The pensions sector is doing a lot of work to help customers understand their retirement options and make the right decisions for their personal circumstances in the light of the pension flexibilities. It is equally important that pension guidance and communications support people in increasing their levels of retirement saving before it is too late for them to do anything about it. The ABI has recently unveiled a 5-point plan on customer engagement in the retirement market, emphasising the importance of regular communications with a specific call to action based on a customer’s age or levels of savings.”
ENDS
The 5 point plan is here and you can see the accompanying press release here.