More than 4 in 10 pension savers feel more confident about their pension schemes following the reforms announced at the 2014 Budget, a survey for the Association of Investment Companies (AIC) has found.
The YouGov survey of more than 3,000 UK adults found that 44% feel more positive about their retirement saving since the new pension freedoms were announced earlier this year.
Respondents said their main reasons for being more positive were:
- having flexible access to their pensions (70%)
- being able to flexibly invest and withdraw cash (60%)
- not having to buy ‘poor value for money’ annuities (57%).
26% of people who plan to retire said the changes have made them more likely to increase their pension contributions.
The survey also highlighted specific concerns over annuities. 35% of respondents who plan to retire said they would not buy an annuity and just 2% said they would use their entire pot to purchase one. 27% said they had not decided on how much to invest in an annuity.