Its research shows fewer than one in four over-55s (23%) find the Pensions Advisory Service useful while just 16% say Pension Wise is useful for pension freedom and retirement planning. Two out of five (40%) savers are not seeking any guidance or advice on their options.
The findings come as new Pensions Minister Guy Opperman takes up his role which will include creating a new organisation for guidance bringing together The Pensions Advisory Service, Pension Wise and The Money Advice Service.
Guidance is a major issue which can help address the other major challenge identified by the study - the lack of innovation since the launch of pension freedom more than two years ago. Around 71% of over-55s want to see more options for retirement income while 74% of advisers are calling for more innovation in retirement income solutions to address volatility risks.
The research is Part 2 of the report from MetLife including Making Pension Freedom More Effective available to download at metlife.co.uk outlining the opportunities and challenges facing savers as well as advisers, providers, regulators and the Government.
It identifies the real worries for savers from the new pension freedom including the need to guarantee an income for life that offers flexibility while minimising potential tax bills.
Around two out of three advisers (66%) say the meeting the need for income in retirement is the biggest challenge for advisers while half (47%) of over-55s are concerned about paying too much tax.
Simon Massey, Wealth Management Director at MetLife UK said: “The issues that worry consumers the most include minimising tax bills and ensuring that their money does not run out in retirement.
“The concern for savers relying on drawdown is that funds and income can reduce as a result of investment market volatility or overspending which is where guidance and advice can provide vital support.
“The new Pensions Minister has a wide range of issues to tackle but top of the agenda should be providing a guidance service which can build on the successes of the past two years and help deliver real pension freedom.”
MetLife’s series of reports covers major issues facing pension freedoms, including a review of the past two years, an assessment of the demand for advice plus analysis of the social and economic challenges and a series of recommendations for the future. The reports will be released over the coming two months as MetLife expands the debate.
MetLife’s range of retirement and investment solutions have been designed to meet the need for a guaranteed level of income for life in retirement or a guaranteed capital amount at the end of a chosen term, while providing customers with the flexibility to access their investment if needed.
Customers can choose from a range of investments to build a personalised plan suited to the levels of risk they are willing to take, while having the choice of a valuable guaranteed level of income for life from age 55 or a guaranteed capital sum at the end of their chosen term. In addition, the plans offer the potential for customers to increase the value of their guarantee through daily lock-ins of investment gains while enabling savers with the flexibility to start, stop and restart their income to suit their personal needs.
To read the full report please click on the title Part 2 of the report from MetLife including Making Pension Freedom More Effective
Independent research for this report was commissioned by MetLife and conducted in September and October 2016 among nationally representative samples of 960 over-55s and among 109 specialist retirement advisers. Research among 84 UK MPs weighted for party representation was conducted by Dods’ Research in September 2016.
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