In the news this week “New research, seen exclusively by The Telegraph, shows that more than two thirds of the people who run private sector pension schemes admit that their members do not face "good outcomes" in retirement.
In other words, the trustees, consultants and advisers who set up and administer defined contributions (DC) schemes – the most common type of workplace pension – fear they won't provide sufficient income for a comfortable retirement.
The research, conducted by the insurance company Partnership, showed that there was widespread disengagement with pensions among the 2.5 million members of DC schemes – where a person's retirement income is based on contributions, investment returns and annuity rates, rather than earnings.
In total, eight in 10 of those surveyed said the average worker did not understand their pension. The professionals interviewed cited three main problems: apathy, a lack of education about retirement options and a "general fear of pensions".
All three things that we at Enable want to make sure you avoid by getting the best independent Financial advice with reputable IFA's in Bishop Stortford.
The Telegraph go on to report “This lack of engagement is less of a problem if you are still a member of a final salary or "defined benefit" scheme – where your pension is based on your earnings. Here, there are far fewer choices to make: members don't have to choose between different investment options or take out an annuity on retirement. It is the schemes' trustees that shoulder both the investment and longevity risks. If they make the wrong decisions, the scheme can suffer, but it is still obliged to pay out the promised pensions to members.”
If you not are in this more fortunate position Enable IFA's can help you plan for the future.
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