one QUARTER of working adults, equivalent to 7.3 million people, say they plan to start or increase pension contributions following changes in the Budget.
The finding comes from pensions campaigner Dr Ros Altmann, who was awarded the CBE in the weekend honours list, in a manifesto calling for a National Wealth Service. Her report 'Flexibility for Retirement - Planning for Change' is a response to the Budget reforms allowing over-55s to cash in their personal and workplace pensions (non final salary) from next April.
Sponsored by alternative annuity specialist MetLife, research for the report found 41 per cent of retirement savers admit they do not understand pension saving and 71 per cent would be prepared to work past state pension age. But 24 per cent said the changes were encouraging them to save for the future.
Dr Altmann says for the Budget reforms to succeed, the UK needs a national network of independent retirement guidance, integrated into auto-enrolment at work, with regulatory changes to boost professional financial advice.
She says "guidance" services must disclose charges, with no hidden commission, and a system of specialist lower cost advice for people at retirement should be introduced, with the Government increasing the current £150 a year tax allowance for employers who provide advice in the workplace.
She said: "To make the new freedoms work for individuals, a revolution in the provision of financial education, information and advice is required."
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