Almost half of UK consumers find pensions daunting.

In an era where the cost of living threatens to undermine consumer confidence, it’s no surprise that almost half of UK consumers find pension information overwhelming. When faced with such a daunting task, it can be difficult for individuals to make informed decisions about their retirement planning.

New research has revealed that half (50%) of consumers feel overwhelmed by pension and retirement information, and more than two in five (45%) need help figuring out what to do next once they receive it.

Consumer confidence

In the past year, households have been affected by high inflation, rising interest rates and volatile markets. This has taken its toll on consumer confidence and self-belief, with only 59% feeling confident when making financial decisions, down from 63% in 2022. More people are seeking help from outside sources in response to this uncertainty.

Today, 83% of people view obtaining advice from financial professionals as an essential source of support, compared to 73% last year. Pension providers or information on pension provider websites (76%) and employers (69% have also seen an increase in people who find them helpful for retirement decisions.

Sound financial decisions

People primarily require information about their pension and retirement planning to make sound financial decisions.

• This includes understanding how much money their pension will provide upon retirement (47%)
• The amount of money currently in their pension pot (46%)
• Ensuring enough funds are being contributed (32%)

Source for guidance

Pension provider websites have become a popular source of guidance, with 41% of people visiting them at least once a year. Other sources include asking friends and family (39%) or surfing the internet for advice (39%). Those who have workplace pensions often look to their employer (33%) or colleagues (29%) for guidance.

Planning for retirement is essential to ensure that your financial future is secure. That’s why it’s encouraging to see from the research that 93% of those with lower incomes who have taken control of their finances report enjoying retirement, compared to just 66% of those without a retirement plan. Worrying, however, despite this, 72% are doing nothing to prepare for later life.

Want to find out how to plan ahead for the retirement you want?

Whether you’re years from retirement or just around the corner, it’s essential to consider the lifestyle you’ll want when you stop working. There’s a lot to think about. And we can help. For more information about your retirement options, please get in touch.