Just four in ten (43%) working 50-65-year-olds who expect to retire know how much annual income they’ll receive from their pension and savings, according to new research[1]. During times of economic uncertainty, the importance of seeking expert support about major financial decisions only increases.

Post-work income
The YouGov survey, which questioned 1,935 people aged between 50-65 who expect to retire, also found that women are less likely to know about their post-work income than men (39% vs 46%).

The findings come despite the Financial Conduct Authority (FCA) introducing measures to help people make the most of their pension savings earlier this year. The move followed the regulator’s conclusion that those approaching retirement, acting without guidance or advice, were struggling to make informed decisions.

Geographic disparity
Geographically, the results show significant disparity, with only a third of Londoners (34%) knowing how much they’ll receive post-retirement compared to more than half of those in the East of England (52%). Additionally, there is a notable drop in awareness amongst those who are divorced or separated (37%), or never married (34%), compared to those who are married or in a civil partnership (46%).

Knowledgeable’ about retirement options
Backing up the FCA’s estimate that 100,000 people enter drawdown every year without taking financial advice[2], the study also found that the majority (53%) consider themselves ‘knowledgeable’ about their retirement options.

More men consider themselves knowledgeable (57%) than women (48%). Across the UK, those in the East of England (60%) are the most confident in their knowledge of retirement options, those in Yorkshire and Humber the least (49%).

Financial advice
These findings highlight that not enough people are taking professional financial advice in those crucial few years before retirement. The decisions made at retirement are big ones and have long-term consequences.

Many people spend years accumulating a large amount of money in pensions and other savings, but really don’t know what that might mean, how much income they can reasonably expect to receive and how best to take that income.

If you want to know more about your retirement options, and which option may be best for you, head to our Retirement Planner to get your personalised report.

Source data:
[1] Research for Standard Life. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,003 working adults aged 50-65, of which 1,935 expect to retire. Fieldwork was undertaken between 18-21 October 2019. The survey was carried out online.
[2] FCA proposes rules on investment pathways and other measures to improve retirement outcomes for consumers – https://www.fca.org.uk/news/press-releases/fca-proposes-rules-investment-pathways-and-other-measures-improve-retirement-outcomes-consumers

Content of the articles featured in this publication is for your general information and use only and is not intended to address your particular requirements or constitute a full and authoritative statement of the law. They should not be relied upon in their entirety and shall not be deemed to be, or constitute advice. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without receiving appropriate professional advice after a thorough examination of their particular situation. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of any articles.