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Centre for Policy on Ageing | |
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Defined capability
— pensions, financial capability and decision-making among retirees | | Author(s) | James Lloyd, Chris Lord |
| Corporate Author | Strategic Society Centre; NatCen; Joseph Rowntree Foundation - JRF |
| Publisher | Strategic Society Centre, London, March 2015 |
| Pages | 66 pp |
| Source | http://strategicsociety.org.uk/wp-content/uploads/... |
| Keywords | Income [older people] ; Private pensions ; Retirement ; Quantitative studies. |
| Annotation | The government's announcement in the 2014 Budget of a change in the taxation of Defined Contribution (DC) pension savings from April 2015 removed the obligation for individuals to convert DC savings into a secure pension income at retirement. Outcomes from these changes will depend on the behaviour, choices and financial capability of these individuals. Historically, there has been limited detailed, quantitative evidence on the financial capability of Defined Contribution (DC) pension savers approaching retirement, and on how financial capability changes through later life. This research, which analysed data from Wave 3 of the Wealth and Assets Survey, explored the characteristics of three specific groups; DC pre-retirees aged 55 to 64 with DC pension savings; DC retirees aged 65 and over with DC pensions savings or a DC pension income; and low-income DC retirees. The study found limited experience of financial products among DC savers approaching retirement, with one quarter of this group possessing neither a savings account nor an ISA; an age-related 'liquidity bias', with the amount individuals have in their current account increasing in older age groups, even as levels of financial wealth decline; and low levels of financial engagement - such as monitoring financial 'best-buy' tables - among DC savers, with engagement levels declining steadily with age. (NH). |
| Accession Number | CPA-151016203 B |
| Classmark | JF: JK: G3: 3DQ |
Data © Centre for Policy on Ageing |
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| ...from the Ageinfo database published by Centre for Policy on Ageing. |
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