More than eight in 10 Brits claim they were not taught about pensions at school
As many as 84% of adults claim they were not taught about pensions at school – leaving 22% feeling anxious when it comes to planning for retirement, according to a study.
A survey of 4,000 adults found that one in 10 (9%) feel confused about the financial side of the retirement process – with 57% admitting that their lack of financial knowledge makes it all seem like a minefield.
Over half of those polled (54%) worry they will not have enough money to see them through to retirement – with 13% feeling overwhelmed by this.
And younger adults, aged between 25 and 44, feel particularly unprepared for retirement (35%), according to the research, commissioned by Annuity Ready.
However, when it comes to their financial education, those who attended private schools are more than three times as likely to have learnt about pensions, compared to state school alumni (20%, compared to just 6%).
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And privately educated adults are also more likely to have a personal, or private pension, outside of their employment linked pensions, than their state school educated peers (40%, compared to 26%).
Meanwhile, when approaching retirement age, 22% of state school educated people reaching retirement age are more likely to say they don’t realise they’re able to shop around with their pension funds, and transfer savings to another provider – compared to privately educated people of the same age (5%).
As a result, many are left feeling confused, anxious, or overwhelmed when it comes to retirement planning (Annuity Ready)Sarah Lloyd, commercial director at Annuity Ready, said: “People are heading towards retirement feeling underprepared, and worried they’ll outlive their cash.
“Our findings uncover just how much a type of schooling can contribute to your understanding of pensions, and how financially prepared you feel for retirement.
“People privately educated are more knowledgeable about the financial options available to them when they retire, including options like annuities. Also, they’re more likely to take an active role in planning for their financial future, before they start to reach retirement age.”
The study also found 67% weren’t aware of the benefits that annuities may offer to those who have pre-existing medical conditions.
When it comes to retirement planning, 29% rely on information and advice from online resources and articles, while 28% seek help from family and friends. And just over two-thirds (68%), of those aged 65 and over, have planned for their financial security during their retirement.
However, it also emerged that 17% could not correctly describe what a state pension is – with one in 10 thinking it’s a payment that UK citizens make to the government when they retire.
Furthermore, of those who took part in the study, by OnePoll.com, 18% said they’ll be downsizing their home and adopting a more frugal lifestyle when they retire.
Sarah Lloyd, at Annuity Ready, added: “Retirement should be something to look forward to – but too many members of the British public instead feel anxious, overwhelmed, and fearful of making the wrong financial decision.
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“There’s a whole range of pension options available out there, and it’s a collective responsibility in helping the people of Britain to take charge of their financial futures.
“No-one, from any background, should get left behind. We’re encouraging everyone to get pension ready with our free online resources, and seek guidance to understand all the financial options available to them when they come to retire.”
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