For the third consecutive year, uncertainty around how to make the best decision when accessing pension benefits is the primary concern when it comes to the time leading up to, and during, retirement, according to research by Employee Benefits.
The Employee Benefits Pensions research 2020, which surveyed 94 pension strategy decision-makers found that this year, 68% said this is the case, compared to 74% in 2019. This has been a key issue since 2014 when it was a concern for almost two-thirds (60%) of respondents.
This year, more than half (59%) of respondents are concerned about financial security in
retirement, with an equal percentage (59%) voicing concerns over a lack of a financial plan;
this is unchanged since 2018, when 59% and 54% respectively said the same.
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Trying to make sense of the tax implications of accessing their pensions also remains a pressing concern, with more than half of respondents seeing this as an issue: 50%, compared with 43% in 2018.
It is no surprise to see that the Covid-19 (Coronavirus) pandemic has heightened concerns when it comes to pensions; almost a quarter of respondents (24%) fear financial losses due to the impact of the pandemic.
Click to download the Employee Benefits Pensions research 2020.