Confused Britons need help understanding pensions
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Signal
Jan 14, 2020
Confused Britons need help understanding pensions

A study has found that working Britons are confused about what’s in their pension pots and pessimistic about retirement. People often put off the stressful and complex task of retirement planning, opening up opportunities for financial brands to simplify and demistify the process.

Research by YouGov has revealed that half of British people don’t think they’ll be able to maintain their preferred lifestyle after retirement. The study suggests this pessimism may stem from confusion about pension schemes; in fact, four in ten working Britons don’t understand workplace pensions at all, and over half say they don’t know how they work. This issue is more prevalent among the young, with 54% of 25- to 34-year-olds saying they don't understand pensions, compared to just 33% of those over the age of 55. Importantly, this confusion can have a real impact, and a tenth of British people currently pay nothing into their pension pot.