In a post-Budget survey, MGM Advantage revealed data showing the risk people are willing to take managing their own pension savings when rules over pensions come into force in 2015.
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28% of the over 55s surveyed said they were not comfortable taking on the risk of managing their own pensions to provide a suitable income throughout retirement.
The research shows that only 26% of the 908 adults surveyed aged 55 and over, are very comfortable managing their own pension savings, 41% are somewhat comfortable, while 5% don’t know.
Peace of mind
A key concern for adults aged 55 and over who aren’t comfortable managing their own pension savings is the thought of running out of money.
Two-thirds (69%) said running out of money in retirement is a cause for concern, while making poor choices when investing and the consequences of this were an issue for 64% of adults in this age group.
One in two said budgeting for the whole of retirement is a reason to be concerned, as is assessing how long they would live and therefore need to plan for.
Our view
The key to a comfortable retirement is understanding your income options and putting in place a plan that makes sense for you.
Most will want their basic living costs covered by a guaranteed income. After that it’s very much down to personal choice.
If you are considering remaining investment then independent advice will be worth its weight in gold.
Choices
There are literally thousands upon thousands of investment options available.
Unless you are able to dedicate a significant amount of time to sifting through them all, understanding many of them before selecting just a few and then watching them like a hawk you might be better of outsourcing to someone who can and will.
It’s not just a matter of keeping an eye on performance, there’s also charges, risk and ongoing suitability.
We’re here to help you understand. We don’t charge for talking so why not drop us a line?
Sources: mgmadvantage.co.uk