FCA report points to all-round confusion about retirement options

13% unsure if pension is DB or DC

clock • 2 min read

Many consumers are not well-informed on decisions they make about their income in retirement and are baffled by many aspects of the process, according to a report by the Financial Conduct Authority (FCA).

The report Understanding the financial lives of UK adults pointed to some alarming data on how uninformed and baffling many consumers find pensions. It found 3% of all UK adults did not know if they had a private pension provision or not, and of those aged over 50 without a pension, 10% had never considered why they did not have one. The report also found some six million people, or 13% of UK adults, were unsure if they were contributing to a defined benefit (DB) or a defined contribution (DC) scheme. Of those with a DC scheme, more than a third (36%) were either unable or unwillin...

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