Just 19 per cent of UK trustees and sponsoring employers believe retirees will act prudently when making important retirement decisions, a massive drop from the 90 per cent who thought they would behave responsibly when a similar group of trustees were surveyed in May 2014.
The straw poll, conducted by Broadstone Corporate Benefits at a seminar in London in December 10, 2014 found 88 per cent of trustees and sponsoring employers support the government’s decision to expand pensions flexibility, compared to 100 per cent in May 2014.
The poll found 58 per cent expect annuities to remain a key part of retirement planning, down from 73 per cent in May 2014, while 73 per cent of attendees believe final salary scheme members will be tempted to take their transfer value and convert to defined contribution to access the flexibilities announced in the Budget, an increase from 68 per cent reported earlier in the year.
Broadstone technical director David Brooks says: “We are surprised at the huge drop in trustee confidence of members’ abilities to act responsibly for the long term, as a result of the budget changes. However, it is apparent that the increased flexibilities are viewed favourably by the majority of the industry. As a result, we believe there needs to be a major educational exercise to ensure members are making the right choices for their future retirement needs.
“Despite the scaremongering that has occurred in the consumer press over the past months, it is apparent that many pensions professionals still see the value of annuities as a core element when deciding members’ retirement options.”
