35% near retirement not aware of Budget changes

More than a third (35%) of respondents approaching retirement are either unaware or unsure about the pension reforms announced in the 2014 Budget, according to research by MetLife UK.

Its research, which surveyed 568 adults aged 55 and above with defined contribution pension savings, found that 27% of respondents had not heard or read about the pension changes.

A further 8% did not know whether they had heard or read about the changes.

The research also found that there is a move away from buying annuities among respondents, with 27% of respondents ruling out buying one before the legislation comes in, while 22% were unsure of their retirement income plans.

Dominic Grinstead (pictured), UK managing director of MetLife, said: “It is easy for the pensions industry to assume that everyone is focused on the Budget reforms and thinking about what they need to do.

“In reality, substantial numbers of people who need help and advice to navigate the new pensions flexibility are unaware that the industry has changed completely, and they will now have the freedom to control their retirement funds.

“The Budget changes will benefit everyone saving for their retirement, but for that to be achieved there is a real need for consumer education on retirement income solutions now and in the run-up to April 2015, with a major role for financial advisers to help deliver.”