Retirement income options – probably the biggest decision of your life

19th May 2014

Jonathan Watts-Lay, Director, WEALTH at work comments in The Sunday Telegraph & Business Reporter on the importance of individuals understanding their retirement income options.

A recent survey conducted by WEALTH at work, a leading provider of financial education in the workplace, found that only 14 per cent of employers believe their employees are aware of the various options available to them at retirement. In addition, only 23 per cent believe their employees consider their total wealth as part of their retirement planning – in other words, other savings and assets, not just what is in their pension pot.

Watts-Lay comments: “These figures are shockingly low. Therefore, it is critical that companies offer financial education to ensure employees not only save towards their retirement but understand the various retirement income options available to them at the point of retirement. As more employees retire from DC plans it is becoming ever more apparent that having a comfortable retirement is not just about the level of pension contributions or the funds selected but what is actually done with the pension pot when retiring, as this can significantly impact the level of income which is generated.”

Watts-Lay adds, “It is important to consider all assets, not just pensions when making decisions at retirement. Consideration also needs to be given to wealth held by partners, as this can influence decisions. It is important that, after what may have been a lifetime of saving, employees know what the options are and are able to access advice to ensure they are making the correct decisions. If they do not, there is a danger that employees will end up in a poorer position than perhaps they needed to.”