Are you comfortable managing your own pension savings?
In a post-Budget survey, MGM Advantage revealed data showing the risk people are willing to take managing their own pension savings when rules over pensions come into force in 2015. 28% of the over 55s surveyed said they were not comfortable taking on the risk of managing their own pensions to provide a suitable income throughout retirement. The research shows that only 26% of the 908 adults surveyed aged 55 and over, are very comfortable managing their own pension savings, 41% are somewhat comfortable, while 5% don’t know.
A key concern for adults aged 55 and over who aren’t comfortable managing their own pension savings is the thought of running out of money. Two-thirds (69%) said running out of money in retirement is a cause for concern, while making poor choices when investing and the consequences of this were an issue for 64% of adults in this age group. One in two said budgeting for the whole of retirement is a reason to be concerned, as is assessing how long they would live and therefore need to plan for.
Aston Goodey, Director of Sales and Marketing at MGM Advantage, commented:
“With all the hubbub around the Budget, it is easy to forget people’s appetite for loss and attitude to risk. From this research we can see although many people are comfortable managing their own money to provide a suitable income throughout retirement, almost one in three are not. People approaching retirement will have to make some crucial decisions about how they can maximise the pension savings they have. With the welcome increased choice and flexibility comes more complexity. This is where receiving financial advice will be key, ensuring there is a balance between people understanding the risks to ensure their savings last their lifetime, without resorting to undue conservatism.”