Pensions - Articles - Pension Freedoms to face their peak test in 2020

 Commenting on today’s data, Alistair McQueen, Head of Savings & Retirement at Aviva said: “Aviva supports the pension freedoms. We believe people should be trusted with their own money, but we also recognise the need for support and guidance in helping people make the right decisions about their financial future.

 “In the tax year 2016/17, 393,000 individuals took advantage of the freedoms across the UK, withdrawing £6.45 billion from their pensions. As the number of people reaching the age of 55 in the coming five years peaks – at 945,000 in 2020 – the pension freedoms will face their greatest test on whether they can offer a sustainable financial future.

 “Recent government research identified that only one-in-three (34%) people in the 45-to-54 age group had given any consideration to how many years of retirement they may need to fund.[3] Entering the arena of the pension freedoms without serious consideration of future needs could spell trouble for many savers.

 “Aviva supports the government-backed Pension Wise service as a vehicle for helping those engaging with the pension freedoms.

 There have been over four million visits to the Pension Wise website since it was launched [4]. This is encouraging, but there is no room for complacency.

 “Aviva is also supporting its customers with financial education and online tools. Our Retirement Planner tool freely helps people plan the retirement savings and consider their options. It has been used over 200,000 times since it was introduced.

 "We will continue to support our customers, helping them to make the most of their money in retirement.”