A new report has uncovered widespread confusion when it comes to basic information about pension planning.
While over half (53%) of Brits claim to be knowledgeable about pensions, the study found that only a third know what a Defined Benefit (DB) or Defined Contribution (DC) scheme is, and 20% don’t know what type of pension they have.
The Aviva survey of 2,000 UK adults highlights the need for better financial literacy and support.
Doug Brown, CEO of Insurance, Wealth & Retirement, at Aviva, said, “These findings clearly show that, while confidence is high, people’s knowledge and understanding of pensions doesn’t necessarily match that self-assurance. At Aviva, we believe that financial literacy is the cornerstone of financial wellbeing.
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“By empowering people with better pension knowledge and the tools they need, we aim to help them make informed decisions about their financial futures to help them get ready for retirement.
“A good grasp of pension literacy can help you to maximise your benefits by knowing when and how to claim your pensions, understand tax implications, and make the most of your employer contributions.
“Having a well-informed approach to retirement planning, including how to balance spending, saving and investing, means that you could have sufficient savings put aside to maintain your desired lifestyle in retirement.”
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