Over half of over-55s are fearful of cuts to the state pension and more than half worry it will be abolished. Nearly two thirds also believe that tax relief on pension contributions will be reduced at some time in the future, according to the research by Prudential.
After a series of sweeping reforms – such as the launch of pension freedoms and the flat-rate state pension – more than three-quarters of those surveyed wanted an end to any further changes to pension rules, the insurance giant found.
Many over-55s have switched off to pension news due to continual changes in the area over recent years and are saying they are confused by the system. They are now saying they are confused by pension freedom reforms, which were aimed at giving people greater control over how they spend, save and invest their retirement savings.
The basic state pension is due to rise to £122.30 this month, while the new flat rate version will go up to £159.55.
Prime minister Theresa May promises to stick to the triple lock guarantee until the next election. Although there is not guarantee of this sticking and is said to be dropped after 2020, due to it being costly and unsustainable.
The Government has also backed off making changes to the pension tax relief in the last couple of Budgets.
It currently pays tax relief on contributions to pension pots, in line with the principle that we all save for retirement out of untaxed income. It does this based on people’s income tax rates of 20 per cent, 40 per cent or 45 per cent.
The Prudential research also found that over-55s would value support from their employers in tackling retirement planning.
About 21 per cent said access to financial advice at work would help them save more, while 20 per cent would back having retirement planning seminars at work.
Some 36 per cent of savers felt that walk-in financial guidance centres would boost savings while 31 per cent would back a tax break for savers taking face-to-face professional financial advice.