The overwhelming majority of people over the age of 40 in the UK does not back the government with its handling of pension policy, research by My Pension Expert found.
Around 87% of the 1,268 Brits surveyed said they have “no confidence” in the way the government has been dealing with pension issues.
Over half (53%) opposed the temporary suspension of the triple lock system for the 2022-23 financial year, with 39% saying they will be impacted by the move.
A further 53% is now worried about the freezing of personal allowances announced in the March 2021 budget by chancellor Rishi Sunak. Nearly a fifth (18%) believe that the uncertainty around changes to pension tax benefits is harming their retirement planning as well.
As a result, most of those surveyed (64%) would back a simplification of the pension system to benefit planning.
Yet just 9% sought online guidance on retirement in the past 12 months, and only 12% engaged with an independent financial adviser.
But nearly half (47%) of over-40s in the UK believe that more resources need to be put in place to widen access to financial advice.
‘Not enough’
Andrew Megson, executive chairman of My Pension Expert, said: “It is little wonder that Britons’ confidence in pension policy has plummeted. From sudden policy changes to uncertainty around rumoured reforms, the government has not done enough to protect the interests or financial wellbeing of pension planners.
“Worryingly, too few people are seeking support, with online resources and independent financial advice underused. Evidently, there are barriers to advice, such as assumptions that it is expensive or hard to understand – more education and support must be provided to show that this is not the case.
“The government can no longer afford to sit on the fence when it comes to pension policy. Nor can it rely on promoting inadequate free guidance.
“Policymakers must work alongside regulators to develop a coherent strategy to improve access to advice. Only then will savers be able to develop strategies to withstand such changes to policy and restore confidence in their financial futures.”
