One in three retiring this year haven't heard of the Pension changes due on 6 April

16 March 2015

  • However, many of those in the know have already changed their retirement income plans
  • Class of 2015 retirees last took financial advice over three years ago but pension freedoms make them more likely to do so now
  • Only one in 50 are considering the ‘Lamborghini option’ of blowing their whole pension pot on purchases
  • Increased choices drive the need for many to take financial advice

Almost one in three people (32 per cent) intending to retire this year are unaware of the changes to pension rules taking effect from 6 April, according to new research by Prudential1.

The insurer’s eighth annual Class of study, tracking the financial plans and aspirations of people who plan to retire this year, shows that substantial numbers of the Class of 2015 are in the dark about the changes to pensions regulation announced in the 2014 Budget. The pension reforms, which are now just days away from being implemented, will increase the choice of options for people seeking an income from their pension savings.

Retirees changing their plans

Those 2015 retirees who are aware that a broader range of retirement income options will be available to them from April, are already taking action. A third (33 per cent) of those with pension schemes have already changed or will change their plans for taking retirement income, while one in twelve (8 per cent) are still making up their minds whether to change their plans or not.

Final salary pensions

Of those people with pension savings planning to retire in 2015, more than half (56 per cent) are members of final salary pension schemes, and the majority of these scheme members (66 per cent) will stick with their current plan to start taking their pension this year. A further 13 per cent are either undecided or are waiting to take professional advice before making a decision. 

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