Just under two-thirds (60%) of respondents are saving for retirement compared to less than half (47%) two years ago, according to research by Blackrock.
Its Global investor pulse survey, which is based on a sample size of 4,000 UK respondents, also found that 54% of respondents are positive about their financial outlook, an increase of 13% over two years.
The research also found:
- 38% of respondents are concerned about the pension flexibilities.
- 72% of respondents aged over 55 stated are familiar with the pension freedoms, yet 79% have not yet taken any action.
- Just 6% of respondents over the age of 55 have purchased an annuity, and 12% have taken some or all of their pension pot in cash.
- Of those respondents with a defined contribution (DC) pension looking to take action in the next 12 months, 11% plan to invest and 4% expect to buy an annuity.
- Of those with a DC pension yet to retire, 38% plan to take some or all of their money in cash at the point of retirement, 27% expect to buy an annuity, and 19% plan to look at other retirement products.
- 17% of respondents aged over 55 are concerned about the tax implications of drawing too much income.
- 20% of respondents aged 55 and over that have heard of the pension reforms have sought advice or guidance in order to make sense of the pension freedoms.
- 40% of respondents envisage a period of phased or semi-retirement, with 43% of respondents aged 25-34 years old looking to do this from as young as 57.
Tony Stenning, managing director at Blackrock, says: “Things are looking up. People are feeling more positive about their financial future compared to two years ago, and a record number of people are saving for retirement.
“Confidence in making financial decisions however, has decreased. Unfortunately, this means that people seek what they know and end up being over-reliant on cash.”