Pensions - Articles - 87% of over 55's wary of stock market crash harming pensions

 The majority (85%) of respondents were aware that a stock market fall could have an adverse effect, suggesting that most people understand where their pensions are invested and how growth is hoped to be achieved, and also that the volatility of markets can negatively impact their retirement prospects. 

 78% of respondents would like the value of their future retirement income to increase by at least 3.5% every year, while 68% consider it important that the value of their future retirement income will not decrease, regardless of stock market downturns.

 Millions of people are aware of the recent pension freedoms and the flexibility they offer, and Portal Financial is certain that people would also want to know if they could protect their future retirement income.

 Jamie Smith-Thompson, managing director of Portal Financial, says: “The pension freedoms have been a mainstay of the news since they were announced in 2014, for good reason. Our research confirms that people also want security, not just in their income as they receive it – which an annuity offers once at the point of retirement – but in knowing how much they will receive from a much earlier point, without the worry of a sudden market crash wiping out their retirement prospects.

 “There are now products on the market that provide this security years before a person is due to retire, insuring their income whilst allowing growth if the markets perform well, basically offering the best of both worlds. Whilst there are additional fees involved, as with any insurance, many will feel it is worth it to remove the worry of a devastating stock market crash happening in the imminent approach to retirement. August’s drops just reinforce the importance of this.”