Pension planning can be difficult as there are many costs and operational obligations to consider. Recently, Guiide, the Glasgow based free pension calculator, conducted a survey on this topic in a bid to find out what is the most important factor to retirees when choosing a pension provider.
According to Guiide, each month between 2,000-2,500 pension savers, who plan to use the pension freedoms when they retire, utilise the company's modelling tool.
These visitors range across all ages but around 80 percent are over 45 years of age.
Guuide regularly uses this audience to gain insight on what people are prioritising when it comes to pension planning and its latest research polled its users and asked: "What is most important to you in choosing a pension provider?”
The results highlighted both interesting and, arguably, some expected responses.
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"We are pleased this appears highly valued, but it was perhaps surprising given the lack of development in this area to date. Recent polls from ourselves and others showed 80 percent of people believed they got too little planning support from their provider or scheme.
"However, perhaps this would be expected to be seen as a higher priority for those that do plan to navigate retirement themselves.
"The third most important factor with 19 percent of the votes was brand name. There is definitely a lot of support for a well respected and trusted brand name as our previous polls have shown. However, this lower percentage does show the potential opportunity of newer, less well known brands to gain a share of the market, as has been seen with new innovative providers.
"Finally and perhaps most surprisingly, offering lots of investment choices was the least important preference, with only 15 percent of the vote. Investment choices do seem a key area of focus for many providers and as a result this is a surprising outcome.
"Although perhaps less so, when considering actual savers behaviour. Historically a high proportion of savers have always chosen to take the default investment option offered and have not engaged further with other choices available."
While these are important areas to consider, Kevin Hollister, the founder of Guiide, broke down a number of other areas people should also focus on then planning their retirements.
He said: "In making any switch from a current provider people should check that no valuable guarantees or employer contributions are lost from their current providers and that no high exit charges apply.
"In addition, it is of course also necessary to check that the provider offers the desired options at retirement, such as drawdown for those that wish to choose this.
"We have assumed any choice is based on execution only providers, i.e. where the individual chooses the provider and investments themselves.
"These are fine for those that are comfortable to do so, but there are also others who give customers robo or human based advice on their own products, such as choosing suitable investments etc.
"These may be preferable for those who need some elements of advice.
"As always, if possible the best option is to seek whole of market advice on which provider is suitable for each person's specific circumstances and priorities."
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