Britons are spending more time buying a new car or remodelling a bathroom, than deciding on how they use their pension money in retirement, according to new research by Legal & General.
21 Sep 2018
The FTSE 100 firm’s Price of Freedom research has found that just under a third (32%) of people aged over 55 are spending less than a week to make a decision on their pension income arrangements, and to understand which products represent good value. By contrast, 40% of over-55s say they would spend more than a week choosing a new car.
The survey of more than 2,000 over-55s has highlighted a lack of knowledge about how individuals can use their pension pots in retirement, and underlined the need for better consumer education. Few respondents knew the actual rate of return they could get from their pension as income in retirement, and nearly a quarter (23%) wewere unable to say what rate would represent good value for money on their investments or savings.
Emma Byron, Managing Director, Retail Retirement Income, Legal & General Retail Retirement: "Planning retirement is a challenge and it’s maybe not as much fun as buying a car or remodelling our bathroom, but it is important. We need to spend time on this vital task, or we run the risk of not having enough money to last or our investments not giving us the return we want."