- Equivalent of almost 5 million savers planning to take action on their pension
- Two in five 16–24-year-olds are likely to stop saving
- Majority of people who took financial advice (79%) found it extremely/ somewhat helpful
- Aviva urges people to weigh up pros and cons and use the help and tools available
Aviva’s latest research reveals that almost one in four (23%) Brits who have a pension – the equivalent of almost 5 million people1 - are thinking about withdrawing money from their pension, opting out of automatic enrolment, or planning to reduce, pause or stop their contributions in a bid to help ease the financial squeeze.
This figure rises to 42% of 16–24-year-olds and just under two fifths (38%) of 25–34 year olds who are likely to act to relieve their current financial situation. There is also a distinct gender gap, with almost 3 in 10 (28 %) men planning to take one or more of these actions versus 18% of women.
Alistair McQueen, Head of Savings and Retirement at Aviva says,
“When times are hard, we understandably try to find ways to cut costs, so considering your savings is an obvious thing to do. But it’s important to weigh up the pros and cons when it comes to your pension.
“Pensions carry unique financial benefits that cannot be replicated elsewhere. For example, if you are in a workplace pension, it is very probable that your employer will be contributing too. If you stop saving, your employer will probably stop with you, and this boost will be lost. Pension saving also benefits from tax relief. Stop saving, and tax relief will stop at the same time. It’s important to understand these other benefits when you are looking at your pension.
“Many modern pensions give you great control over how and when you save. For example, you can often stop, start, increase, or decrease the amount you save, as and when you want. And from the age of 55, there is great control of how and when you access your savings. The benefits of these simple flexibilities are more valuable than ever during these difficult times. However, it is important to consider all options and take advice if possible.”
Many people are facing tough choices but there is information and help available, for example through the government’s free and impartial guidance service, Pension Wise, or from a financial adviser. The majority of respondents (79%) who sought financial advice before withdrawing money from their pension pot or reducing their pension contributions, agreed that it was extremely or somewhat helpful.
Free online tools are also available, like Aviva’s pension calculator which can also help you work out how much you’ll need when you retire.
The research was conducted by Censuswide between 30.09.22 – 03.10.22 from 2,061 general consumers, national representative sample. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles.
Notes to editors:
- We are the UK’s leading Insurance, Wealth & Retirement business and we operate in the UK, Ireland and Canada. We also have international investments in Singapore, China and India.
- We help our 18.5 million customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
- We have been taking care of people for 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2021, we paid £30.2 billion in claims and benefits to our customers.
- Aviva is a market leader in sustainability. In 2021, we announced our plan to become a Net Zero carbon emissions company by 2040, the first major insurance company in the world to do so. This plan means Net Zero carbon emissions from our investments by 2040; setting out a clear pathway to get there with a cut of 25% in the carbon intensity of our investments by 2025 and of 60% by 2030; and Net Zero carbon emissions from our own operations and supply chain by 2030. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
- Aviva is a Living Wage and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
- As at 30 June 2022, total Group assets under management at Aviva Group were £353 billion and our Solvency II shareholder capital surplus at 30 September 2022 was £8.8 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
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