The advice industry is currently trying to solve the issue of decumulation, but it will have a hard task, as many Brits believe their pot will be too small.
Compensation recovery service Expert Pension Claims surveyed 2,000 UK adults and almost half (48%) said they fear that they will not enough money to last through retirement.
Some 52% of women think this will be the case.
It also found 19% do not bother with pensions at all because they do not think there is any point, while 20% said pensions contributions are a “waste of money”.
Around 24% of 51-60 year olds said they have no idea how to access their retirement pots.
Education
Caroline Anstee, managing director of IFA firm Anstee & Co, said: “If more financial education was available then everybody would understand more and therefore not worry as much.
“Unfortunately, most people do not address the future, so when they get to making decisions about retirement have left it too long. So advice is vital and never too early to understand and think about the needs beyond working life.
“By going through a cash flow forecast of needs now, future plans can be made.
“The main thing is that people review their pensions as costs eat into any return and then see where they are and plan. Financial education should be given to all and then they would understand how important planning ahead is.”
Not starting
Despite obvious pension concerns, figures also show that just over a third (34%) of women haven’t started seriously thinking about their pension.
This is compared with almost a quarter (24%) of men.
Some 24% of women believe pensions will not exist when they hit retirement and 31% of 31-40 year olds think this will be the case too.
“Everyone’s situation is different, and not everybody is reliant on pensions alone, so it is important to assess the whole situation and take a holistic view then plans can be made, it just depends on what the needs are in retirement and what lifestyle is required,” Anstee added.
“There are many sceptics regarding pensions, mainly because of the way the industry has behaved and conducted itself. We must show them that pensions/investments are a good thing and planning ahead for the unknown is vital.
“The first time pensions are addressed are at retirement or divorce. They should be reviewed every year.”
Investments
When asked about possible future decisions, almost a quarter of people said they would consider investing their pensions into stocks and shares for a bigger return in the future.
More than a quarter of men (26%) said they would consider investing their pension into real estate to make more money.
One-in-10 people said they could consider investing their pension into cryptocurrency for a bigger return later down the line.
