Nine in ten Pension Wise users say it provided the information they needed, according to new research from the Money and Pensions Service (MaPS).
- 90% of Pension Wise users say they’re well informed about their options for accessing their pension pots after an appointment or using its resources.
- Users are also much more likely to take financial actions than non-users.
- A third of people accessing a defined contribution pension in the past four years used the service, according to the FCA.
- MaPS urges over 50s to gather the information they need, use free resources like Pension Wise and “examine their options today” if they haven’t already.
A poll of 327 telephone appointment customers and online users, conducted four months after their interaction, shows that 90% feel well informed about the different options they have for accessing their pension pots.
This makes them considerably more likely to feel well informed than non-users (65% – 130 surveyed).
The free and impartial service, run by MaPS, is available to anyone over 50 and offers guidance on taking money from your pension pot. In addition, it explains how you’re taxed and helps look out for scams, with both personal telephone appointments and online resources available.
According to the research, Pension Wise is also inspiring people to take financial actions.
A considerable amount of telephone appointment customers and online users had ‘calculated how much income they’d need in retirement’ (70% and 65%), ‘spoken to their pension provider about their pension pot options’ (59% and 49%) and ‘consulted a financial professional’ (36% and 31%) in the following four months.
They were both much more likely to have done so than people who’d never used the service, with just 36%, 20% and 22% of non-users ever having taken these actions.
It also shows that Pension Wise plays an important role in the plans people make, with around half of telephone appointment customers (57%) and online users (44%) saying they changed how they accessed or intend to access their pension.
Both types of users (94%) were confident they could avoid a pension scam, compared to 88% of non-users.
The results come after the Financial Conduct Authority released its latest Financial Lives report last month, which showed around 525,000 of the 1.5 million people (35%) accessing a defined contribution pension in the last four years had used Pension Wise. Among those who had, 88% said it had helped them, with just 9% saying it did not.
According to the Department for Work and Pensions, just one in eight people (13%) access their defined contribution pension without any information, guidance or advice.
Reflecting on the new data, MaPS says that now is the time for people over 50 to consider using Pension Wise as they begin to plan how they will access their pension pots. The organisation also wants to reach even more of those who aren’t using it in case they need its help and guidance.
According to its ongoing tracking research, 91% of telephone appointment customers are currently satisfied with the service, along with 73% of online users.
Lynsey Oliver, Pension Operations Service Lead at the Money and Pensions Service, said:
“Planning for the future and deciding how to access your pension can seem daunting, but it’s never too early to take that first step. If you’re over 50, it’s really important to examine your options and feel prepared for what’s next.
“Our service helps people feel informed, make good decisions and be even more wary of scams. Only one in eight people accessing a defined contribution pension do so without any information or advice, whereas a third have used Pension Wise in the last four years alone.
“However, there will always be more we can reach and we’re urging all over 50s to consider using a service like ours. It really can make all the difference long term and we’re here to help anyone and everyone who needs us.”
-ENDS-
For further media enquiries, please contact the MaPS Press Office on 020 8132 5284 / media@maps.org.uk.
Notes to editors
- Pension Wise survey (Customers and Non-Customers): Research carried out by Ipsos on behalf of MaPS. Survey of UK adults aged 50+, four months after using the Pension Wise service. 164 telephone appointment Pension Wise customers completing a telephone or online survey between 27/05/2023-11/06/2023 and 163 self-serve online users completing an online survey between 18/02/2023-11/05/2023. Results weighted to be representative of all Pension Wise users.
- 130 non-users of the Pension Wise service also surveyed via a telephone or online survey between the 20/05/2023 – 11/06/2023. UK adults aged 50+ with quotas and weighting to replicate the profile of Pension Wise customers.
- MaPS ongoing tracking: Research carried out by Ipsos on behalf of MaPS. Survey of UK adults aged 50+, one month after using the Pension Wise service. 528 telephone appointment customers completing a telephone or online survey between 20/05/2023 – 04/06/2023 and 367 self-serve online users completing an online survey between 25/03/2023 – 08/06/2023. Results weighted to be representative of all Pension Wise users.
- A ‘financial professional’ is defined as financial advisors, tax advisors or accountants.
- Telephone and online users were asked if they’d taken a financial action in the three months immediately after their appointment. Non-users were asked if they’d ever done so before January 2023.
- Planning and Preparing for Later Life, released in July 2022 by DWP, says that most people who accessed a DC pension received information, advice or guidance from a financial advisor, their pension provider or Pension Wise before doing so (71%). Around one in eight (13%) had received no information, advice or guidance at all.
- You can find information on Pension Wise on the MoneyHelper website.
- MaPS also runs the Government’s Money Midlife MOT, which helps people assess their financial situation and plan for the future. A personalised report will tell them what to prioritise and link to guidance on how to improve their financial wellbeing, from midlife through to retirement.
About the Money and Pensions Service
Our vision is “Everyone making the most of their money and pensions.”
We offer free, impartial help and guidance on money and pensions via www.moneyhelper.org.uk and 0800 138 7777. The service includes a range of free tools, plus the opportunity to speak to an expert via WhatsApp, phone, email or live chat.
We also co-ordinate the UK Strategy for Financial Wellbeing, working with partners and stakeholders to help everyone find their way forward and build a better financial future.
We are an arms-length body, sponsored by the Department for Work and Pensions and funded by levies on both the financial services industry and pension schemes.
For more information, visit our website or annual corporate plan and strategy.