Drapella Capital Management's Recent Survey Highlights Confusion About Pension Planning
New research released by Drapella Capital Management illustrates the level of confusion there currently is about the pensions and savings system in the UK and just how unimportant tax relief is to a person's decision making.
Hong Kong, Hong Kong, December 9, 2015 (Newswire.com) - A recent study reveals that a percentage of workers aged 18-64 believe it complicated to understand where exactly it's best to save for retirement, the amount they should save, when and exactly how they can access their funds and what income they will actually require in retirement.
Slightly less than two-thirds (64%) of participants find it hard to understand precisely where it is best to invest their money for retirement.
62% say it is difficult to understand exactly how much money to save on a regular basis in order to generate the income in retirement that they need.
At the same time 58% of participants find it difficult to understand when and how you can access the funds you invest into a pension plan.
23% say they are unsure as to what level of income they will require in retirement.
With people finding it difficult to navigate the system, it's not surprising that 22% of individuals questioned do not have any form of savings.
The survey also shows that one of the key measures which could surface from the UK Government’s assessment on the pensions market will not influence savings behaviour. The assessment asks whether tax relief on pension contributions should be abandoned but around two-in-five (44%) of participants currently investing into a retirement plan said doing so would make no difference to the actual figure they save.
However the survey does identify that employers have an important part to play in encouraging saving with almost half (49%) stating higher contributions from employers would persuade them to save more.
Head of Retirement Savings at Drapella Capital Management Anthony Frey commented: “The UK government’s current assessment identifies the problem but it’s uncertain that UK tax relief changes are integral to promoting more saving. However what is evident is the importance of the employers’ position: if companies make contributions to an individual’s pension it motivates that person to save more. That makes it essential that we continue to develop a workplace pensions system for all”.
The survey was conducted online and comprised of 2,130 adults, of which 1,137 are workers aged 18-64.
For more information regarding UK or international pension planning please contact Drapella Capital Management.