The average workplace/CETV pension fund is over £60,000

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Dublin, May 23, 2022 (GLOBE NEWSWIRE) — The Workplace Pensions Consumer Research Report 2022 has been added to from ResearchAndMarkets.com offer.

For this report, the analyst commissioned Maru/Blue to conduct a survey of its online panel, drawing on a nationally representative sample of 2,148 UK adults aged 18 and over. This generated a sample of 1,449 people who hold any type of workplace pension plan.

67% of consumers have at least one type of occupational pension

67% of consumers have at least one type of company pension plan, and seven in ten company pension plan holders have a company pension plan with their current employer. Affluent consumers, especially those in middle or senior management positions, who work full time, are the most likely to have workplace pensions.

Working full time and being between the ages of 25 and 44 plays a key role in determining company pension ownership. This is arguably related to the introduction of self-enrollment (AE) to the occupational pension market in 2012. Most consumers who are currently employed but do not have an occupational pension with their current employer , have voluntarily made the decision not to be affiliated. or to leave a working regime.

The most common arrangement is that workplace pension plan holders only have a defined contribution (DC) plan (four out of ten), with just under a third having only a defined contribution (DC) plan. a defined benefit (DB) plan. About one in ten company pensioners have both types of pension. One in five employer-sponsored pensioners are unsure of the type of pension they receive. These consumers include a high percentage of part-time workers who seem detached or uninterested in their workplace pension plans.

These findings are from Workplace Pensions 2022. The report looks at the types of workplace pension plans held, how individuals contribute to their pensions, whether individuals have withdrawn money from any of their retirement in the workplace, their use of financial advice and their retirement goals.

Examples of other findings from this report include:

  • Owning a defined benefit pension plan is essentially a phenomenon of older people.

  • The typical amount held in company pensions (DC Fund Values ​​or DB Cash Equivalent Transfer Values ​​- CETV) is £60,419.

  • Employees with a company pension tend to have a longer-term perspective on their financial priorities, compared to employees without a company pension, focusing more on financial goals such as funding their old age , finance their retirement and leave a legacy.

  • Over the past year, about seven in ten occupational pension plan holders have made new contributions to their pension plan

  • One in five workplace pensioners have sought advice from a regulated financial adviser in the past three years.

  • About a third of working, pensioners make retirement decisions without any professional support, without using regulated financial advisers or consulting unregulated sources of advice, such as Pension Wise or financial websites.

Main topics covered:

Summary

  • Most consumers have an employer pension

  • DC employer pensions most likely to be held

  • The average workplace/CETV pension fund is over £60,000

  • Focusing on long-term finances encourages workplace pension plan ownership

  • Monthly dues are the norm

  • One in five employer pensioners sought pension advice

  • When advice is taken, it is followed and meets the client’s needs

  • Advice requirements are changing

  • Pensions (professional and private) will be the main source of retirement income

  • Four in ten non-retired labor pensioners made withdrawals

Introduction

Workplace pension plan

  • Nearly seven in ten consumers have a workplace pension plan

  • Most employer pensioners have a pension with their current employer

  • Most employees who are not enrolled in a workplace plan opt out or opt out

Types of workplace pensions

  • Most workplace pension holders have a Dc pension

  • Age has a strong influence on the type of pension held

  • Affluent and executive employees are most likely to have a Db pension

Pension fund values

  • Over £60,000 held in workplace pensions

  • Older, well-off pensioners have the largest pension wealth

Retirement planning and priorities

How do consumers contribute to their retirement?

Pension advice

  • One in five workplace pensioners have sought pension advice

  • Advisors support a pension holder’s own knowledge of several financial products

  • If advice is sought, the advisor’s recommendations are followed and appreciated

  • Workplace pensioners widely seek information

  • The independent financial advisers most likely to be consulted

  • Increased demand for IFAS to review pensions

The importance of employer pensions for retirement

Pension withdrawals

For more information about this report visit https://www.researchandmarkets.com/r/y1h6u8

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Dolores W. Simon