New insight from fieldwork undertaken by MGM Advantage in March 2014, reveals the approach people are likely to take when they have full access to their pension pots for the first time, following the radical changes announced in the 2014 Budget.
In a survey of 2,470 adults, including 908 aged 55 or over, the research shows that only 3% of the over 55s find spending their pension savings as soon as they can get access to them the most attractive option. 42% of adults in this age group like the certainty of using an annuity to provide some form of regular income. 43% of the over 55s like the freedom of managing their own money without an annuity but attempting to make sure it lasts throughout their lifetime.
The data also shows some uncertainty following the changes announced last week, with one in ten (12%) of the over 55s not sure which option most appeals to them in retirement.
Aston Goodey, Director of Sales and Marketing at MGM Advantage, commented:
‘As a temperature check of how people are thinking shortly after the Budget, these numbers show that the vast majority of people won’t blow the lot. On the contrary, most people like the freedom and choice the new options provide, although many still want to secure a regular income using an annuity. As we navigate through these changes, the role of advice will be vital to ensure customers maximise the value from their pension savings, while taking advantage of the new choice and flexibility available.’