Only 25% rate Government’s cost of living support for people coming up to retirement

Just a quarter of UK adults believe the government has done a good job of helping those nearing or in retirement during the cost-of-living crisis, according to a new survey by My Pension Expert.

The survey of 2,000 adults found that only 25% of people who have a pension feel the government has provided sufficient support to pension planners over the past 18 months – falling to just 14% among over-55s.

Most (56%) think the government lacks a clear strategy for improving outcomes for pension planners. Just over half (51%) of people with a pension say high inflation and rising interest rates have made retirement planning a more challenging undertaking.

Regarding the performance of Chancellor Jeremy Hunt, only 24% expressed confidence in the Chancellor of the Exchequer’s skills and decision-making. Meanwhile, just 23% have confidence that the government will achieve its goal of bringing inflation under 5% by the end of 2023.

My Pension Expert’s research also showed that less than two in five (38%) are comfortable with their pension funds being invested in British businesses to fuel economic growth – a negative response to the recently announced Mansion House Reforms. Further, 57% say the government cares more about using pension funds to fuel economic growth than improving returns for pension planners.

Lily Megson, Policy Director at My Pension Expert, said: “This research delivers a damning verdict on the government’s strategy for improving the prospects of UK pension planners. Further, it highlights a prevailing sense of scepticism towards the government’s ability to effectively address flaws within the current system.

“After 18 months of soaring inflation and rising interest rates, pension planners are crying out for more effective support. Of the many actions needed, fast-tracking the launch of the repeatedly delayed pension dashboard and improving access to independent financial advice are two critical steps. Doing so would certainly be a starting point in reassuring pension planners that their financial futures are at the forefront of the political agenda.”

Meanwhile, another survey of 2,000 people, conducted by investment comparison site Investing Reviews found 68.71% of respondents believe that the UK retirement age (which currently stands at 66) should be lowered. 71.16% of respondents said that it is harder to retire in the UK now than ever before; 42.66% said they would consider working in an entirely different sector to their current career if it meant greater employer contributions to their pension; and 34.93% said they do not know exactly how much money is in their pension.

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