New research has found that half of those aged 40+ don’t think the government provides sufficient education and support for pensions.
This has left many people unable to properly understand pension policy, putting them at a disadvantage when it comes to saving for retirement.
According to the My Pension Expert survey of 1,295 adults aged 40 and above, when presented with four definitions of the triple lock, just 35% identified the correct one – that the state pension would increase by the annual rate of inflation, average annual UK wage growth, or 2.5%, whichever figure is largest.
As many as 62% said they find pension planning daunting and 69% feel the government should improve people’s access to financial guidance and advice.
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Lily Megson, Policy Director at My Pension Expert, said, “Preparing for retirement is rarely as straightforward as we’d all like it to be. Sadly, the complexity of our pensions system exacerbates the issue, with changing policies, excessive jargon and insufficient government support leaving savers in the dark as they prepare for the future.
“That so few over-40s know precisely what the triple lock is ought to be a wake-up call to MPs. We need a shift towards greater consistency and clarity when it comes to pension policy – something that would help people plan effectively. This must then be supported through better access to financial education, guidance and advice for everyone.
“Political parties should work more constructively together to deliver genuine cross-party collaboration on boosting financial literacy. Everyone should have access to the right tools to manage their finances and effectively prepare to achieve the retirement they deserve.”
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