Just one in five UK adults plan to take pension action
47% know “A-Day” refers to pension reforms, up from just 16% in June
57% of pension savers have no idea of their pension value, and just 21% plan to review their pension arrangements in the next six months
www.takepensionaction.co.uk explains what the changes mean to you
Public awareness of “A-Day”, as both a term and a reality, has shot up over the past half year, according to survey findings* from IFA Promotion, the organisation promoting the benefits of independent financial advice. However, with just three months to go until wide-ranging reforms to UK pension rules take effect, just 21% of UK adults intend to review their pension arrangements and whether “A-Day” could benefit or cost them [See breakdown of results on p2].
In June 2005, only 16% of UK adults recognised that the term “A-Day” referred to pension reforms, with more people plumping for “Armistice Day” or “A-Level results day”, and a worrying 11% associating it with “Armageddon, the end of the world.” IFA Promotion’s updated survey, carried out this month, reveals that nearly half (47%) can now rightly identify what A-Day refers to.
When asked whether they had heard of the imminent, far-reaching reforms to the pension system, 41% of respondents said they had, compared to a mere 21% awareness in June of last year.
David Elms, Chief Executive of IFA Promotion, “Although a worrying six out of ten people have still not heard of the A-Day reforms, there has been a remarkable rise in awareness since last summer, but this isn’t being matched by intended action. There is no doubt that millions of retirement savers will end up worse off by not reviewing their pension arrangements to take account of these reforms. And for many people, the time to act is now, not in three months time, when some of the potential opportunities to protect existing benefits will have been and gone.”
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IFA Promotion has updated its A-Day help-site, www.takepensionaction.co.uk , to reflect the changes announced by the Chancellor in his pre-Budget Report. Visitors can see how A-Day could affect their specific situation, and steps they can take to benefit, or avoid losing out, from the April 6th reforms.
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* IFA Promotion commissioned YouGov to survey 2276
IFA Promotion A-Day survey results, January 2006 and June 2005
Q1) What do you think the term A-Day refers to? (prompted options):
January 2006 | Adults | Men | Women | <30 | 30-50 | 50+ |
Armistice Day | 25 | 27 | 23 | 34 | 26 | 19 |
A-Level results day | 6 | 8 | 5 | 6 | 5 | 7 |
State Administration changes | 14 | 10 | 17 | 18 | 16 | 9 |
Annuity and pension reform | 47 | 48 | 46 | 36 | 45 | 53 |
Armageddon | 8 | 8 | 9 | 6 | 6 | 11 |
June 2005 | Adults | Men | Women | <30 | 30-50 | 50+ |
Armistice Day | 46 | 48 | 44 | 56 | 52 | 35 |
A-Level results day | 19 | 19 | 19 | 13 | 15 | 25 |
State Administration changes | 8 | 5 | 12 | 12 | 8 | 7 |
Annuity and pension reform | 16 | 19 | 13 | 10 | 15 | 20 |
Armageddon | 11 | 10 | 12 | 10 | 9 | 13 |
Q2) Had you heard about these reforms before? <