Pension decision looming large forolder residents
Berwick constituency has the highest proportion of residents aged 55-64 in the UK who face complex decisions about how to use their pension pot.
Some 12,000 55-64 year olds, over 16 per cent of the population, in the Berwick constituency could benefit from a government Bill heard in the House of Commons on Monday.
The Bill aims to help them make sense of difficult pension choices by automatically enrolling them into free and impartial pension guidance.
It aims to address concerns that, despite their best endeavours, many people do not make the best choices when faced with the complicated task of working out how to make good use of the pension pot they have spent decades saving up.
Research conducted by Just Group reveals that 37 per cent of 55-64 year olds find pensions difficult to understand - that’s 4,500 in Berwick - and 25 per cent do not feel confident to make the right decisions about pensions - 3,000 in Berwick.
Stephen Lowe, group communications director at Just Group, said: “The Financial Guidance Bill going through Parliament could help resolve a glaring omission from the Pension Freedoms policy – ‘what to do about those not getting advice or help?’.
“The Bill’s proposal to automatically enrol everyone into free impartial guidance will equip people to make better informed decisions and help to prevent people from being scammed, paralysed by choice or simply following the path of least resistance into uncompetitive and perhaps ill-suited products.
“Pensions are hugely important and have a big effect on people’s quality of life in retirement. Encouraging people to spend a little bit of time speaking to an impartial and independent guide will help savers understand their options. For thousands of people in Berwick who are likely to make decisions in the near future about what to do with their pension savings, automatic enrolment into pension guidance could be a game changer.”