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The PPI is an INDEPENDENT educational, not-for profit research institute. We undertake rigorous research from a neutral, long-term perspective

Reports and Briefing Notes

Transitions to Retirement: How complex are the decisions that pension savers need to make at retirement?

The PPI published How complex are the decisions that pension savers need to make at retirement?, a report that explores the range of potential decisions people have approacching, at the point of, and during retirement, and how these are likely to change once the new flexibilities for savers with Defined Contribution (DC) pensions are introduced in April 2015.

The report has been sponsored by Fidelity Worldwide Investment, and uses data from the English Longitudinal Study of Ageing to project forward the likely pension and non-pension savings and asset portfolios of the population reaching State Pension Age (SPA) over the next ten to fifteen years. PPI segmentation analysis explores the characteristics of different groups and identifies which groups could be at greatest risk of making poor decisions when they reach SPA if they are not offered adequate support, either through guidance and advice or through the provision of suitable defaults.

The PPI Transitions to Retirement series explores how people access pension savings. The series as a whole is sponsored by Age UK, Fidelity, Partnership, State Street Global Advisors, The Investment Association, The Pensions Advisory Service (TPAS), The Pensions Regulator (TPR) and The People’s Pension.

Chapter one sets out the decisions that people face in the run up to, at and during retirement and looks at some of the available information on current trends in these areas.

Chapter two sets out the internal and external factors which influence the decisions that people make in retirement and examines retirement and pension transitions which are involuntary.

Chapter three sets out the skills and knowledge that people need in order to make informed decisions about pensions, retirement and other financial decisions from across the life course and ranks these decisions by difficulty and overall financial impact on people’s lives.

Chapter four sets out the portfolios of pension saving and entitlement that people will be reaching State Pension Age with today and over the next ten to fifteen years. It defines different segments within this population and looks at which segments are faced with the most complex decisions at and during retirement and how these correlate with financial skills and knowledge. This chapter explores the implications of the segmentation for the provision of advice and guidance.



Executive Summary

Executive Summary

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