New research from Legal & General finds that those with a Defined Benefit (DB) pension scheme are valuing the security of their pension more following the coronavirus pandemic.
9 Nov 2020
Legal & General conducted the survey of grandparents and parents across the UK looking at how Covid-19 had made them think differently about their finances. The findings show that one in five (21 per cent) of respondents with a DB pension scheme value the security of their pension more due to the pandemic. This is a third more than those with a Defined Contribution (DC) pension (15 per cent).
The findings also show that one in 10 (10 per cent) of respondents with a DB pension said the security of their pension income has made them more likely to gift or loan money to loved ones as part of their retirement plans amid the pandemic, which is twice as likely as Defined Contribution (DC) scheme member respondents (five percent).
There are over 10 million members of DB schemes across the UKi and the security of their pension doesn’t just impact them, it affects their families too. Pension security can be a fundamental part of financial planning for families, which has concerned many during the lockdown.
Laura Mason, Chief Executive Officer, Legal & General Retirement Institutional: "The events of this year have led to uncertainty for many and, understandably, more people are thinking about their pension income in retirement and how it will affect their loved ones. Millions rely on their pensions to provide them with a comfortable retirement, and our latest research highlights how many now value the security of their pension more than before.
We’re pleased to be able to help provide reassurance and security to Scheme members with our Pension Risk Transfer (PRT) offering and are proud of the excellent customer service provided to all members we look after."
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.4 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2021
Legal & General Retirement Institutional (LGRI) works with trustees and sponsoring companies of defined benefit (DB) pension schemes of all sizes to settle their pension obligations and secure scheme members’ benefits, through a full range of buy-ins, buyouts and other de-risking solutions.
Our UK Retirement annuity book stands at over £89 billion as at 9 March 2022, of which over £28 billion is invested in direct investments that deliver positive social and environmental impacts, such as clean energy and affordable housing.
Our Client Services’ 12-month rolling Net Promoter Score (NPS) is above +70, which is widely regarded as being at a “world class” level.
(As of 31 Dec 2021)