* 70% stated that paying off their mortgage was their primary or secondary financial pressure which kept them up at night
* Only 4% would be very likely to pay for advice
50+ year-olds * 80% are aware of the new pension freedoms introduced in the 2014 Budget
* Two thirds do properly understand their retirement options
* 75% do not view their pension investment as safe
Damian Stancombe, Head of Workplace Health and Wealth at Barnett Waddingham said: "Naturally, there are bound to be differences in attitude between generations but the Helping Hands Survey highlights that increasingly 18-29 year-olds are emerging as the ''Generation YOLO!'. "It cannot escape anyone that a 25 year-old is going to have a fundamentally different view of what's important to a 40 year-old, and again to a 55 year-old. Employers and trustees need to significantly change the way they communicate with each generation regarding saving for retirement. To truly engage, they can no longer communicate collectively across generations when there are particular concerns that will be missed without communicating to individual age groups." "It is telling that 18-29 year-olds rated saving for a house and clearing debt significantly above building a pension. A number of survey respondents commented that they didn't see the point in building a pension when they have existing debt to contend with. Ultimately true saving begins with debt management. To tackle the issue of engaging this age group with pension saving, new strategies to help the young clear debt need to be considered by both the government and employers. The Financial Conduct Authority (FCA) has issued a report into sales practices and consumer behaviour around pensions, calling for significant improvements if people are to understand their options as the Government’s pension reforms take effect. The FCA are concerned that many individuals will not appreciate the choices available to them, and may therefore be induced to make unwise decisions. The principal recommendations in the report are: Requiring firms to make it clear to consumers how their quote compares relative to other providers on the open market. The introduction of a behaviourally trialled alternative to the current system of wake- up packs. This would build on work already underway and feed into our work considering how we will replace the ABI Code with FCA regulation. Recommending that the pension guidance service and firms take account of the findings of the market study on consumer behaviour when designing tools to support decision-making. In the longer term, recommending the development of a ‘Pensions Dashboard’ which would allow consumers to view all their lifetime pension savings in one place. FCA reports on annuities sales practices and retirement income market 12 December 2014
Quarterly review from the Pensions Regulator
17 December 2014
CIPP Policy News Journal
08/04/2015, Page 410 of 521
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