Pensions guidance gap fuels £132bn savings shortfall

Guidance/advice gap continues to cause headaches for pension savers

clock • 2 min read

The typical person aged 50-64 has pension savings that are 58% short of what they require, yet only one-in-five have spoken to a financial adviser about their pensions, the Social Market Foundation (SMF) says.

The think tank's report - published on Tuesday (22 February) in conjunction with Phoenix Group - found that more than two-thirds of 50-64-year-olds in the UK do not know how much they will need for retirement. The move away from defined benefit (DB) to defined contribution schemes has and will continue to increase the need for better advice and guidance for workplace pensions, the SMF said, since it increases the complexity of the pension landscape for many people. To help mitigate these risks, SMF said Pension Wise should be expanded with a broader scope and a focus on the provision ...

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