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Pension confusion rife among Britons
11 August 2008 12:00
Understanding of pensions is badly lacking in Britain today, according to a new poll, with uncertainty especially common on the relationship between personal and state pensions.
Nearly four out of five people were unaware of how and when their personal pension would be paid out to them, Halifax's survey showed, while an even higher proportion did not know how much of it would be available to them as a tax-free sum upon retirement.
Moreover, three out of five did not know the difference between personal and state pensions, with over one in three thinking they were not entitled to this state provision and one in six believing they would be ineligible for it if they had too many savings.
Yet there were some more positives signs, as more than two out of five people knew what an annuity was and nearly two thirds recognised that some pensions are linked to the stock market for the long-term, rather than being affected by short-term fluctuations.
However, Halifax's Karen Cronshaw still urged Britons to think about their retirement plans, warning that the growing cost of living and increasing life expectancy makes it essential that they have a substantial income in place for after they have given up work.
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