Over-55s are still confused due to pension reforms

Take a look at the figures…

It’s been two years since the government made changes to pension freedom rules, many are still unsure as to what the changes mean for them.

A total of 67 per cent of the over-55s surveyed told Prudential they were still confused by the new system.

A huge 77 per cent of people said they want any future changes to be stopped going forward.

It was the government under David Cameron and George Osborne who made the changes, they removed limits on buy and selling pension annuities as part of the Spring Budget in 2015. This move meant that people were allowed to cash in their pension in a lump sum instead of receiving regular payments during retirement.

Vince Smith-Hughes, retirement income expert at Prudential, said: “Nearly 550,000 people have accessed more than £9.2 billion in funds since the launch of pension freedoms, demonstrating that there is popular demand for the increased flexibility brought about by the reforms.”

“However, two years on from the introduction of the new rules there is also widespread confusion, with two out of three over-55s admitting they don’t fully understand the reforms.”

“That underlines the importance of advice and guidance in ensuring that the pension freedoms are a long-term success and it is encouraging that many savers recognise how advice can help them to make the most of their retirement pot.”