26 November 2018

New research shows consumers not putting themselves on the breadline by spending pension cash on luxuries

2 min read

 
Helen Morrissey, Personal Finance Specialist

Helen Morrissey

Personal Finance Specialist

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Commenting on the publication of the Pension Wise Service Evaluation 2017/18 which shows how people approaching retirement are using the service, Helen Morrissey, pensions specialist at Royal London, said:

“This research explodes the myth that pension savers are blowing their pension pots on luxuries. Those who take guidance are very unlikely to spend their money on luxuries, and those who do so usually have other pension income to support their day-to-day living expenses.”

  • According to the data some 36% of people who had not used Pension Wise had spent their pension pot on luxuries such as holidays. This is in comparison to just 12% of those who had taken up a Pension Wise appointment. This shows how critical guidance services like Pension Wise are in helping people understand how best to use their money.
  • Most of those using Pension Wise did not expect the majority of their retirement income to come from their defined contribution pension pots. For instance 44% also have a defined benefit pension and over 30% of these expected this to be their biggest source of income.

 

Notes to Editors

The Pension Wise Service Evaluation 2017/18 can be found here

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/758517/pension-wise-service-evaluation-2017-18.pdf

For further information please contact:

Helen Morrissey, Personal Finance Specialist

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.