While pension savers back the upcoming pension freedoms they are ‘daunted' by the scale of choice on offer and want providers to offer them a default investment or drawdown choice, research has found.
The Pensions Policy Institute (PPI) conducted interviews and focus group discussions with 55 defined contribution (DC) savers aged 55 to 70. The DC savers said they welcomed the changes but become overwhelmed when faced with the breadth of options available under pension freedoms. The PPI warned "disengagement and inertia" among retirees was a key risk to the success of the policy and said effective default strategies should be established, alongside appropriate guidance and advice. The research, Supporting DC members with defaults and choices up to, into, and through retirement: q...
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