Six months after George Osborne’s announcement of sweeping pension reforms that included greater flexibility and access to funds, we wanted to see whether there was an awareness gap among the public and report any lack of knowledge back to government.
And while our major survey of 1,000 UK adults did post headline results of uncertainty and doubt – only 29% think the changes will benefit them financially, 51% are confused by the new rules and 69% said they need more professional help to decide how to make the most of their pension money – enthusiasm and empowerment were also reported.
Seven in ten welcomed the enhanced access to their pension pot, 64% believe they can make more money from their money if they reinvest wisely and more than a third (34%) feel confident that they can make their own decisions about how to do this.
TD Direct Investing has responded to the varying degrees of awareness and assuredness surrounding the changes with a number of measures to educate and inform consumers. They are designed to meet all needs – from the savvy investor through to the individual who wants advice on the pension changes and the options they present – and recognise that even the financially confident have greater knowledge in some areas than others.
Firstly, we worked with customers to develop a series of educational New to Investing videos to support budding investors. Addressing everything from the reasons more people are choosing to manage their own funds through gauging your appetite for risk to the various investment products that exist, they are a straightforward guide to the considerations and options for savers when reinvesting freed up pension money.
They are supported by more in-depth related guides and a wide range of practical supporting Tools and Resources to help you make the best decisions.
John Tracy, Head of TD Direct Investing Europe, said: “While the new pension rules announced by the Chancellor are a great step towards empowering British people to make their own investment decisions, our survey shows that more needs to be done to educate consumers on how to get the best results from their savings.”
“The industry needs a greater focus on financial literacy and education in the UK to help British people get the most out of their money. The marketplace can be complex and confusing, and the recent industry changes in the UK have created a need for a clearer, simpler investing environment.”
TD Direct Investing was a pioneer in providing financial educational resources and bringing greater openness and transparency to investors and will continue to enhance and refine its information services so that all pension holders are best placed to make important decisions following the changes.
Watch out for further useful updates in News and Views in the run-up to next April, when they will be brought into being.
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