Consumers lack confidence in their long-term savings and investments, research by Which? has found.
The consumer group surveyed more than 2,200 people and found that just 19% trust long-term financial products such pensions and investments.
The survey found:
- 57% of consumers are concerned about the value of their pension
- 60% of non-retired people don’t know how much they need to save for retirement
- 51% don’t know how much they will spend each week in retirement
- 23% of those aged 30-49 think they will save enough for retirement
- this compares to 28% of those aged 50-64.
Which? is calling on the government to adopt a number of measures to help protect consumers’ retirement savings. Speaking to the Public Bill Committee about the Pension Schemes Bill, Which? will call for:
- stringent governance of all types of pension schemes
- regular reviews of the government’s proposed free and independent guidance service
- a guidance service that will cover all pensions options.
Richard Lloyd, executive director of Which?, said:
“The government’s pension reforms are the biggest opportunity for years to make this market work in the best interests of consumers. With many people uncertain they’ll have enough to live comfortably in retirement, now is the time to introduce a consumer-friendly system with good quality guidance that helps people make the most of their hard-earned money.
“With only 6 months until the reforms come into effect, the government, industry and regulators must all work together to ensure people get a good deal throughout their retirement.”