Pensions - Articles - Barclays C&ES response to Budget

 “The Chancellor’s announcement is a step towards bringing choice to all pensioners, allowing greater flexibility for those over 55 in how they use their pension pot. However, our view is that individual’s often show a behavioural bias towards accessing cash today, over drawing a comparative income over an indefinite period, and so there is a risk that some may make poor decisions when preparing for their financial futures, even though they may already be retired.

  

 “Financial education is therefore key to the success of today’s proposals. Our research shows a clear need for DC scheme members for more financial assistance, with three quarters of people needing help just to understand what their likely income will be in retirement. Support will be important in ensuring people make the right choices in light of their new financial freedoms.

  

 “With unprecedented numbers of people now saving through the workplace, we believe that the employer has an important role to play. Implementing a financial well-being programme within a company can go a long way to help employees through complex financial choices which, in turn, helps businesses ensure they are not managing an ageing workforce which cannot afford to retire.”