Published Monday 18th November 2024
Published Monday 18th November 2024
New research from the Get Britain Pension Ready campaign revealed that over one in four (27%) Brits made changes to their pension investments based on speculation in the media about the Autumn Budget.
Over one in four made changes to their pension investments because of discussions they heard in the media before the Budget.
Of those that made changes, twenty nine percent said they withdrew money from their pension earlier than planned.
Seventy five percent admit they would have done things differently if they knew what they know now about the Autumn Budget.
An overwhelming majority (75%) of those who made changes now say they would have done things differently if they knew what they know now. When asked if they felt compelled to make these changes as a result of the speculation they heard in the media beforehand, eighty two percent reported that they did.
For instance, the survey commissioned by Annuity Ready found that of those that made changes to their retirement savings, over a quarter (29%) withdrew money from their pension earlier than planned and twenty percent decreased their pension contribution amount.
With many acting on the speculation they saw discussed in the media in the run up to 30 October, thirty one percent say they now feel worse off following the Budget announcement.
The research highlights concerning findings in which speculation and uncertainty are driving financial decisions. In fact, in the wake of recent decision to axe the Winter Fuel Payment, thirty eight percent of those who made changes said this was a policy that prompted them to make changes.
Following the removal of the Winter Fuel Payment, thirty eight percent of those who made changes to their pension investments in the run up to the budget said this was a policy that prompted them to do so.
When asked about the Triple Lock, designed to protect pensioner incomes, nearly half (47%) of respondents expressed they did not feel confident it would remain in place until the next election.
Additionally, only 29% of respondents say they trust in the stability of current pension policies more following the Autumn Budget announcement.
This lack of trust appears to be deepening, with pensioners expressing particular concern about how impactful the Triple Lock increase will actually be for them. Despite the promised state pension increase scheduled for April 2025, more than half of people (57%) reported not feeling confident that it would meaningfully improve their quality of life in line with rising living costs.
In fact, when asked about the Triple Lock, designed to protect pensioner incomes, nearly half (47%) of respondents expressed not feeling confident it would remain in place until the next election.
Nevertheless, there is also a general sense of under-preparedness playing a role here, which past research has indicated stems from limited understanding around pension policies and options.
When asked about the recent pension policy change on pension inheritance tax, over a third (34%) of respondents admitted to having very little to no understanding or awareness of the change and its implications on their finances. And when asked, nearly half (46%) of people say they do not feel ready for retirement.
“Our findings paint a worrying picture of how people can feel prompted to make significant decisions about their retirement savings in the face of uncertainty. What's concerning is that these aren't just small changes - we're seeing people withdraw money early or reduce their pension contributions based on speculation rather than facts, which has real-world consequences.
“When official announcements are made, we must consider that many people don't always fully understand the policy changes being reported. This creates a perfect storm where rushed decisions are made from a place of anxiety rather than informed choice. Looking ahead, long-term confidence in pension safeguards appears equally fragile. People want clarity and security that they can count on, because pensions and the decisions made have long-term implications for everyone.
“We know that pension education is so important when it comes to financial preparedness for later life, and we are doubling down on our commitment to help everyone understand their pension choices with educational resources, like with our retirement readiness quiz. This uses a simple scoring system to help you discover any gaps in your retirement planning knowledge. It also directs users to helpful resources based on their score because in times of uncertainty, it's crucial that everyone has access to clear, reliable information to make confident decisions about their financial future.””
Sarah Lloyd, Commercial Director at Annuity Ready
Earlier research from Annuity Ready, as part of the Get Britain Pension Ready campaign, revealed that over half (57%) of all those surveyed also reported that the entire financial retirement process feels like ‘navigating a complex minefield due’ to their lack of knowledge.
This research also revealed the extent to which the type of schooling respondents receive has a significant impact on financial preparedness later in life. Interestingly, those privately educated are significantly more likely (20%) to say they were taught about pensions in school, in contrast to their state peers (6%).
Whilst private school educated respondents are more likely to hold private pensions (40%) outside of employment linked pensions compared to their state school (26%) educated peers.
Get pension ready with free educational resources at getpensionready.com, understand your options and make informed decisions about your financial future.
Primary research was conducted by OnePoll on behalf of Annuity Ready and surveyed 2,000 adults living in the UK in November 2024.
Earlier research was conducted by OnePoll on behalf of Annuity Ready and surveyed 4,000 adults living in the UK in December 2023.
