Only one in four pension savers think the government has done a good job, when it comes to helping those nearing or in retirement through the cost-of-living crisis.
This survey, by advisers My Pension Expert, found this figure fell significantly among older savers, with just 14 per cent of the over-55 saying they felt supported by the government at the current time.
Overall there was little support for the current Chancellor of the Exchequer – with just under a quarter (24 per cent) stating they had confidence in his Jeremy Hunt’s skills and decision-making abilities. What’s more the majority of respondents (56 per cent) said the government ‘lacks a strategy’ when it comes to improving people’s retirement outcomes.
This results comes at a time when half (51 per cent) of UK adults with a pension say high inflation and rising interest rates have made retirement planning a more challenging undertaking. Only 23 per cent of respondents said they have confidence that the government will achieve its goal of bringing inflation under 5 per cent by the end of 2023.
My Pension Expert’s research also showed that, less than two in five (38 per cent) are comfortable with their pension funds being invested in British businesses to fuel economic growth – a negative response to the recently announced Mansion House Reforms. In fact, 57 per cent said the government cares more about using pension funds to fuel economic growth than improving returns for pension planners.
My Pension Expert policy director Lily Megson says: “This research delivers a damning verdict on the government’s strategy for improving the prospects of UK pension savers.It highlights a prevailing sense of scepticism towards the government’s ability to effectively address flaws within the current system.
“It’s concerning that just 14 per cent of over-55s feel they have received sufficient support from the government during the cost-of-living crisis. Moreover, the recent Mansion House Reforms have evidently not struck the right note. With many feeling the government’s priorities lie away from the wellbeing of pension planners, it’s evident that a fundamental shift in approach is needed.
“After 18 months of soaring inflation and rising interest rates, pension planners are crying out for more effective support. Of the many actions needed, fast-tracking the launch of the repeatedly delayed pension dashboard and improving access to independent financial advice are two critical steps. Doing so would certainly be a starting point in reassuring pension planners that their financial futures are at the forefront of the political agenda.”
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