Briefing Notes

Briefing Note 72 - DC savers' needs under the new pension flexibilities

In the Budget 2014, the Chancellor announced the Government’s intention to remove any limits on the amount that individuals can withdraw from their DC pensions from age 55 onwards. These changes represent a radical change in the landscape for those approaching retirement with DC pensions.

This Briefing Note provides an overview of the findings from research, conducted on behalf of AllianceBernstein by Opinium research, with over 1,000 individuals aged 40 and over who are actively saving into Defined Contribution (DC) pension schemes.

The research finds that individuals’ intentions around their DC pensions are characterised by high levels of uncertainty around two important factors that will have implications for the management of their pension savings in the run up to, and into, retirement:  

• uncertainty around when they might retire, with 54% indicating that they might know vaguely, within a few years on either side, when they will retire, while 23% say they have no idea;
• uncertainty around how they will access their pension savings - at the time of survey, only 22% of respondents thought they knew how they would use their pension pot.