Commenting on the Wealth and Assets Survey, Stephen Lowe, group communications director at Just Group, said: “As we approach the five-year anniversary of the pension ‘freedom and choice’ reforms it is important to note that millions of people getting close to retirement aren’t confident about their pensions knowledge.
“Of those aged 55-64 – the age group that can already start taking pension cash – just over half (54%) agreed that they understood pensions enough to make decisions and the proportion has been falling in the last five years. And 29%, equal to about 1.9 million people, disagreed that they knew enough, a proportion that has been rising.
“Among 45 to 54-year-olds who will be able to take cash when they are 55, fewer than half (49%) agreed they understood pensions while more than a third (34%) or about 3 million people in this age group disagreed.
“Pension freedom and choice can only work if people make intelligent and informed decisions. Support is available in the form of guidance from the free, independent and impartial Pension Wise service or from regulated financial advisers.
“Auto-enrolment is broadening pension coverage which is a good thing if that money is used to support retirement. Given that many people aren’t confident about their pension knowledge – and some will perhaps be overconfident – more needs to be done to encourage higher take-up of guidance and advice.”
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