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14 Mar 2018

Putting off a saving decision is the UK´s biggest pension regret

We are a nation of pension procrastinators, according to new research by Aegon.

The company surveyed 824 adults — both working and retired — to find out their biggest regrets and best decisions when it comes to pension saving.

Among those still in work and those who are now retired, the number one regret was not starting to save early enough. Similarly, the second biggest regret in both groups was not making a financial plan.

For people in work, the third biggest regret was lack of engagement — wishing they had either joined their workplace pension scheme, or moved out of their default pension fund.

Retirees, meanwhile, had regrets over how they used their pension pot. This included taking tax-free cash when they didn´t need it, taking too much income too soon from their drawdown policy, buying an annuity, or failing to buy an inflation-linked annuity.

On a more positive note, the best pension decision among both groups of respondents was joining their workplace pension or saving into a personal pension (if self-employed). This was followed by saving for retirement from an early age and paying extra into a workplace pension.

Commenting on the findings, Steven Cameron, pensions director at Aegon, said: “With the State Pension unlikely to provide an adequate income for most, saving into your workplace or personal pension is not something you can afford to delay. For many of us, it´s the most important saving pot we´ll ever have, so you want to give yourself the best chance of building it up over as a long a period as possible.

“By starting to save for retirement as early as possible, with time on your side, you have a better chance to avoid future regrets.

“It´s all too easy to put things off till tomorrow, and for those many years away from retirement, delaying paying into a pension, or putting off plans ‘till next year´ may look tempting. But our research shows that many people live to regret procrastinating.”

Copyright © M2 Bespoke 2018

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