Listen: will pension scheme members run out of money?

Research conducted by financial education specialists WEALTH at work and the Pensions Management Institute (PMI) found that Trustees, who are responsible for protecting our pensions have significant concerns when it
comes to their pension scheme members and their knowledge when it comes to their retirement savings.

Nearly two thirds of the Trustees (60%) are concerned that their pension scheme members will run out of money too soon in retirement.

Indeed, nearly nine out of ten Trustees (88%) fear their members nearing retirement will face predatory attention from scammers. The FCA’s latest figures indicate that pension savers have claimed that over £30 million has
been lost to scams since 2017.This equates to an average victim of pension fraud losing a whopping £91,000.

Similarly, 81% believe members are not equipped to deal with the taxation implications of accessing their pension. This is important as it is possible to pay 200 times more in tax depending on how someone decides to take money from their pension, and the latest figures show that pensioners are paying £4 billion a year more in income tax on their pension that previous government estimates.

Aston spoke to Jonathan Watts-Lay, pensions and retirement expert as well as director of WEALTH at work to discuss the research in further detail.