Understanding Pensions Risks
Published / Last Updated on 16/09/2008
Understanding Pensions Risks
Research by Halifax has revealed nearly 8 out of 10 people are mystified by the basic details of pensions. The findings showed a staggering 79 per cent of the public were confused by the basics of their pension and did not know when they would receive it or how it would be paid to them. At retirement, 83 per cent of the public had no idea how much of their pension they can take as a tax-free lump sum. More than a third of the population believed they do not qualify for a state pension and 17 per cent were of the opinion that too much money saved meant no state pension.
On a more positive note, 44 per cent did understand the meaning of an annuity and 65 per cent appreciated that some pensions are linked to the stock market. We suggest it is vital that people seek financial advice about their pension.
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