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DWP: complex pensions put public off planning for retirement

DWP: complex pensions put public off planning for retirement

Pensions are too complex with the majority of the public unconfident about saving for retirement, the Department for Work and Pensions (DWP) has found.

The DWP’s Attitudes to Pension survey 2012, which canvassed the views of 1,949 adults in the UK, showed knowledge of pensions and understanding of state pension rules had reduced since the last survey in 2009.

The research found that 60% of the public did not feel they knew enough about pensions to confidently decide how to save for retirement.

There was confusion over the state pension and particularly the state pension age with 60% of women expecting to reach the state retirement age sooner than they will, 38% of men also thought they would receive their state pension sooner than they will.

One in four men also thought they would not receive their state pension until they were 70 or 75.

The government acknowledged that rapid reform of pension rules was to blame for the public’s declining understanding.

It said: ‘Collectively self-assessed knowledge of pensions as a whole and state pension issues had reduced, which may be related to the ongoing and relatively rapid changes in pension policy.’

Pensions minister Steve Webb told the Daily Telegraph: ‘Too many people are put off saving for their old age by a pensions system which is too complex and too few know clearly what they will get when they retire.’

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