Which? response to the pension reforms announced in the Queen’s Speech

In response to the pension reforms announced in the Queen’s Speech, Richard Lloyd, Which? executive director, said:

“The pension reforms are good news for savers and could help boost retirement incomes, provided the right consumer protections are in place including tough quality standards and genuinely impartial guidance to help people choose the best option.

“People deserve maximum help at this critical time in their financial lives and we look forward to working with the Government and industry to help deliver this.”

Background:

Which? research shows:

·         88% of people say it is important for them to know how much income they are likely to get when they retire.

·         90% of people say that it is important they are guaranteed a certain amount from a pension when they retire.

·         28% of consumers who had opted out or were thinking about opting-out of auto-enrolment said that this was because they were concerned that they would get back less than they put in.

·         Less than half of consumers (42%) coming up to retirement trust their pension provider to act in their best interest.

·         Four in ten (38%) approaching retirement who were contacted by their provider say they didn’t get a clear explanation that they can potentially get a higher annuity if they shop around, and around half (47%) didn’t get a clear explanation that they can get a higher annuity if they have certain health problems.

·         Those who shopped around for an annuity were significantly more likely to feel satisfied with their annuity purchase (76%) than those who did not (52%).

Methodology:

1.   Research Now, on behalf of Which?, interviewed a sample of 512 people with a Defined Contribution pension who plan to retire in the next 12 months, and 495 people who have bought an annuity in the last 12 months, in September and October 2013. The samples were weighted to take into account the age and gender profiles of the two sample populations in order to be demographically representative.

2.   Which? Auto-enrolment Survey 2013, Populus, on behalf of Which?, interviewed 745 UK adults between 18yrs and state pension age, who were employed and earning £8,105 or more, between 20th and 22 March 2013. Data were weighted to be representative of the UK population.​

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