Pension reforms: survey shows people are confused

The survey found that only 29% of UK adults think the pension changes will benefit them financially.

Research shows only 29% of UK adults think pension reforms will benefit them financially

Pension reforms: survey shows people are confused

Pension reforms: survey shows people are confused

In March 2014, Chancellor George Osborne announced radical reforms to UK pensions, including greater flexibility to access pension money, changes to tax rules on pension withdrawals and free advice for pensioners. Yet, six months later UK adults are still confused as to what the changes mean and how best to take advantage of them.

This is according to research from online broker TD Direct Investing. Between 4-10 August 1,000 UK adults aged between 25-75 were surveyed online. The results were then extrapolated to give representative figures.

Survey results

The survey found that only 29% of UK adults think the pension changes will benefit them financially.

Despite a generally positive attitude towards the changes, with seven in 10 (70%) welcoming the greater flexibility to access their pension pot, there remains a lack of understanding as to what the changes actually mean, as well as uncertainty over how best to take advantage of the new rules.

The contrast between the positive attitude towards the changes and the perceived benefits is clear, with over half (51%) of UK adults finding the changes to pension policy confusing.

Additionally, there is a perceived lack of information and advice available, with 69% claiming they need more professional help to decide how to make the most of their pension money.  This is compounded by less than a third (30%) being aware that free advice for pensioners is available.

John Tracy, head of TD Direct Investing Europe, said: “While the new pension rules announced by the Chancellor are a great step towards empowering British people to make their own investment decisions, today’s results show that more needs to be done to educate consumers on how to get the best results from their savings.”

Tracy added: “The industry needs a greater focus on financial literacy and education in the UK to help British people get the most out of their money. The marketplace can be complex and confusing, and the recent industry changes in the UK have created a need for a clearer, simpler investing environment.”

The research also found that 64% believe that they can make more money from their pensions if they reinvest smartly, however only 34% feel confident that they can make their own decisions about how to reinvest their pension money wisely.

Pension Reforms & Equity Release

What Is Equity Release?

Equity release is the use of financial arrangements that provide the owner of a house, or other property, with funds derived from the value of the property while enabling them to continue using it.

How Does Equity Release Work?

Equity release is aimed at homeowners aged 55 and over. It allows you to take some of the value of your home as cash.

Equity Release as a Retirement Strategy

The market is evolving to meet a growing consumer need for equity release. Pensions are no longer adequate for many approaching retirements, and rising redundancies during the pandemic have added to the pressures. Retirement finances are increasingly squeezed as generous final salary pensions edge further to extinction. Many older households are already facing a situation where their expenses outweigh their disposable income.

Editorial Note: This content has been independently collected by the EveryInvestor advisor team and is offered on a non-advised basis. EveryInvestor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.
Taylor Holt - 300x300

Written by
Taylor Holt
Estate Planning Expert

Taylor Is Our Resident Estate Planning Expert. He Knows That Everything Revolving Around Wills or Funeral Planning Can Be a Sensitive Subject That People Don’t Like to Discuss. But He Also Knows How Important It Is to Know All There Is to Know About It. Taylor Makes It His Mission to Spread Awareness About Estate Planning, and We Believe Everyinvestor Is the Best Platform to Do That.

Monique - 300x300

Written by
Monique Pittman
Pensions Expert

Monique Is Our Resident Pensions Expert. Many People Postpone Planning Out Their Pension, Thinking That Is Something They’ll Have to Worry Much Later in Life. Monique Knows How Important It Is to Start Planning Your Pension Early, and She Wants You to Know It Too!

Written by
Lisa Schilling
Insurance Expert

Lisa Is Our Resident Insurance Expert. She Knows How Important It Is to Be Ready for Any Scenario, Especially When a Family Member Is Involved. Nobody Likes Being Found Unprepared in a Tough Situation! Lisa Can Find the Best Insurance to Cover Your Every Need, Present and Future.

Doyle Edwards - 300x300

Written by
Doyle Edwards
Mortgages Expert

Doyle Is Our Resident Mortgages Expert. He Comes From a Long Line of Financial Gurus, and It Truly Shows. Despite His Young Age, There Is No Question He Cannot Answer When It Comes to Mortgages, and His Ability to See Outside of the Box to Find the Best Mortgage Deals Is Truly Impressive.

jason stubbs 300x300 1.jpg

Written by
Jason Stubbs
Equity Release Expert

Jason Stubbs Is a Specialist in the Equity Release Sector. He Enjoys Helping Older People Who Are Struggling Financially Get Out From Under Financial Pressure.

rachel w.jpg

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
francis.jpg

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
Mark Patterson

Written by
Mark Patterson
Mortgage Expert

Mark Patterson is a well-known expert in mortgages. He has been working as an expert for over 15 years, and he specializes in the UK mortgage market.
kath icon.png

Katherine Read
Consumer Affairs Writer

She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date

Nicola Date
Writer & Journalist

Nicola is a financial writer for EveryInvestor and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.