A new survey has found that many people are unaware of upcoming pension changes and the importance of planning ahead.
While there is plenty of media attention on what surprises might emerge in the November Budget, new research has suggested that many people are unaware of pensions reforms and changes to tax already in train.
A survey of 1,500 people aged 45 and over undertaken for a UK wealth manager revealed:
- More than half of respondents were “not at all aware” of upcoming policy changes that could affect their pensions, such as the increase in State pension age from April 2026 and increased minimum age of 57 to access private pensions from April 2028.
- 29% of people intended to pass their pension savings on to family or heirs, either in part or in full, but only 15% said that they fully understood the tax rules around passing on their pension and had planned accordingly. Those claiming such knowledge were probably unaware that the final legislation on the subject is still months away. A more credible 23% admitted that they did not understand the rules “at all”.
The same survey found that over four in ten did not have an up-to-date financial plan or savings set aside for retirement. Just over a quarter had no plan at all. Almost the same proportion anticipated that they would only be able to afford a minimum standard of living once they retire.
If these findings resonate with you or possibly with family members, then it is time to act. Do not delay: the survey found over 40% of people saving for their retirement wish they had started sooner. To begin with:
- Gather the details of your pensions, including those that you are no longer contributing to and plans linked to former employers.
- Get a State pension projection by going to gov.uk/check-state-pension.
This will give you a starting point for your pension income, but it may not be that useful as different pensions will often have different starting dates. To complicate matters further, your retirement income will not just be pensions – there will be the income that can be generated from your savings and investments to consider.
If it all seems confusing or too much data, then it is time to do what 60% of the survey respondents had never done – take targeted financial advice.
At SMH Group we believe that your retirement should be a time for relaxation without worrying about money. We offer pension planning and retirement planning services to help put your mind at ease and secure your future. Check out our Retirement & Pension Planning services and get in touch for a free consultation.
To discuss your financial planning, contact our Financial Services team on 01142 664 432 or info@smh.group
The value of your investment and any income from it can go down as well as up and you may not get back the full amount you invested.
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