CONSUMER confidence in the pensions industry remains low as the Government prepares to shake up the sector, research by consumer group Which?

has found.

Just under one in five (19 per cent) people said they trust long-term financial products such as pensions and investments and nearly three in five (57 per cent) worry about the value of their pension.

Radical reforms which have been described as the most sweeping changes to pensions in a century are set to come into force next April.

They will help to ensure that people are saving into schemes which offer good value as well as giving them more freedom over what they do with their savings when they come to retire, rather than feeling forced to buy a lifetime income called an annuity.

Free, impartial guidance will also be offered alongside the changes to those approaching retirement which will aim to ensure that they know the full impact of what the reforms mean for them. This guidance will be delivered by bodies such as Citizens Advice.

The research carried out for Which? among more than 2,200 people found that fewer than one in three (28 per cent) people aged 50 to 64 are confident that they will have the money they need to live on when they retire, while just 23 per cent of people aged between 30 and 49 expressed this confidence.

Which? argued that as many people have savings beyond their pension, there should be an easy way for people to see all their retirement income, savings and investments in one place, and for the guidance sessions to take all of this into account.

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