UK - Employees' pensions awareness and understanding is "woefully low", claims Invesco Pensions chief executive David Butcher.
The claim was made in response to research from the Department for Work and Pensions which found many employees find scheme information confusing.
Butcher called for a comprehensive programme of education to raise awareness and understanding – and to ensure that people realise that it is up to them to save for retirement.
He warned: “The level of awareness and understanding of pensions in the UK is woefully low.
“It would be a real tragedy if we woke up in 10 years’ time to find that the UK population was as unaware and uninformed about pensions and their benefits as it is today.”
The DWP research involved presenting scheme members with a fictitious scheme’s negative funding position following a full valuation and an outline of what would happen if the scheme were to close with funding at its current level.
Several members commented that the research presented to them was clearer than material that they had been sent on their own scheme, while others said that they would be tempted to leave the scheme as a consequence of seeing their scheme’s true funding position.
Life expectancy in the UK saw no improvement between 2015 and 2017 as the number of people aged over 90 hit a record high, latest Office for National Statistics (ONS) data reveals.
Self-administered pension funds spent £14bn on payments to pensioners in Q2 2018, but only received £11.4bn of contributions (net of refunds), latest Office for National Statistics (ONS) data reveals.
The Pensions and Lifetime Savings Association (PLSA) has named the 17 members of its inaugural policy board after a competitive application process with 60 candidates.