People are at risk of making poor decisions after the government’s pension reforms come into effect says the National Association of Pension Funds. (NAPF).
In their report, Understanding Retirement, explores the concerns of people aged 50-70 with regards to the reforms, due to start on April 6, which allow people aged over 55 to access their pension money.
The report highlights how people postpone seeking help with pension advice until close to retiring age, and how the average working couple – individually earning £30,000 a year in work and £20,000 when retired – are the people who have the most to lose or gain under new reforms.
NAPF director of external affairs, Graham Vidler, believes the speed of reforms means there is “a great deal of uncertainty about what people should do”.
He said: “For these reforms to give savers a chance to manage their pension savings effectively, savers need three things: awareness and understanding of the guidance they can expect, outline pathways to help them make the best use of their money throughout their retirement, and products that are easy to understand, reliable and good value.”