UK. 10m pensioners risk running out of money — poll
Nearly 10m British pension savers risk running out of money in retirement because they do not know how to make their savings last, according to new analysis which sheds fresh light on the complex choices facing retirees.
In 2015, big changes to tax rules handed millions aged 55 and over full control over how they access their retirement cash, including spending the fund in one go.
But a new study has found that faced with this increased choice, large numbers of investors are struggling to make good decisions about how and when to take pension cash.
A poll of 4,000 UK adults — published this week — found that just under a third planned to manage their own finances in retirement, known as the DIY approach. Applied to the whole population, that would be some 8m people out of an estimated 29m pension holders.
But 35 per cent of those surveyed went on to admit that they knew nothing about product options at retirement and the pros and cons of each. That would amount to 10m people in the UK.
Just over a third, 34 per cent, of those who took part in the survey, commissioned by LV=, a pension provider, said they did not know how to ensure their money lasted through their retirement.
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