Over 1 in 5 Brits have no pension provision - OpenMoney

More than one in five (21 per cent) British adults do not have any pension provision in place, according to research by OpenMoney.

Its Advice Gap report also revealed that 9 per cent of respondents did not know what financial investments they had in place for retirement.

However, the proportion of people with no pension had decreased from this time last year, when a quarter (25 per cent) of those surveyed said that they had no pension provision in place.

Those with a standard personal pension had risen from 19 per cent to 24 per cent over the year, while the proportion of people with a workplace pension had increased from 22 per cent to 23 per cent.

Although pension saving had increased, almost half (47 per cent) of the 2,000 adults surveyed did not feel confident in making the financial decision of how to take income from their private pension.

Furthermore, only 31 per cent of respondents felt confident in their ability to choose a pension product, compared to 85 per cent who felt confident in choosing a current account.

Although more than half (56 per cent) said that they would consider taking financial advice when arranging a pension, only 30 per cent said that they would pay for it and two-thirds of those were not willing to pay more than £100.

A third (33 per cent) would opt to speak to family and friends about arranging a pension or making an investment.

“It is clear from our research that too many people aren’t planning or investing for the future,” the report stated.

“In some cases they are not even doing so for the shorter term. Coronavirus has highlighted the need for a cash buffer and some of the impact we are seeing now reflects the lack of that – whether through affordability, awareness, or prioritisation.

“We believe the industry’s ultimate goal must be to close the advice gaps and help everyone, regardless of age, wealth or experience, make the most of their money today and for the long term.”

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