Pension transfer 'sought too late'

Many Brits could wait too long in their working life before considering pension transfer advice and addressing the best ways in which they could maximise their retirement income.

Director-general of Saga Dr Ros Altmann claimed people think about how they will fund themselves in later life too late.

She added there needs to be a culture shift around how UK adults approach their pensions and added this needs to be assimilated into the country's savings culture from a very early age.

It was noted many individuals wait until their late 40s when they feel they have to make last minute decisions regarding their pension transfer options.

Improved flexibility of pensions was called for in order to improve the general attitude toward the importance of saving in the long term.

Dr Altmann suggested a proper redesign of state pensions will help Brits to understand they will be unable to afford a high standard of living when they reach the end of their time in employment.

She warned people who are not giving their pension the attention it requires will have to change their attitude in order to avoid facing retirement poverty.

Indeed, the expert recently warned the high levels of inflation the country is currently experiencing is damaging consumer demand, which is exacerbating the situation and driving more current pensioners into poverty.

Cumulative inflation has had a more damaging impact on the finances of the over-50s, with the media focus on the relatively reduced cost of living refuted as being overly optimistic.

"I believe that pensions advice and information needs to be more accessible with less complex jargon and red tape. People need to see where their money is going but also should be given the opportunity to make their own decisions and take control," Dr Altmann commented.

"Policy makers should be aiming for a pension system that we can all be proud of," the expert concluded.

Ashall Glover Financial Services, pension transfer specialists

Posted by Jonathan Breen