DC savers' needs under the new pension flexibilities

Document type
Corporate author(s)
Pensions Policy Institute
Pensions Policy Institute
Date of publication
28 October 2014
PPI briefing note; no. 72
Poverty Alleviation Welfare Benefits and Financial Inclusion
Social welfare
Material type

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This Briefing Note provides an overview of the findings from research with over 1,000 individuals aged 40 and over who are actively saving into Defined Contribution (DC) pension schemes. This follows the announcement, at Budget 2014, that all restrictions on how individuals aged 55 and over can access their DC pensions will be lifted from April 2015 onwards. The research finds that individuals’ intentions around their DC pensions are characterised by high levels of uncertainty around two important factors that will have implications for the management of their pension savings in the run up to, and into, retirement: 

  • uncertainty around when they might retire, with 54% indicating that they might know vaguely, within a few years on either side, when they will retire, while 23% say they have no idea;
  • uncertainty around how they will access their pension savings - at the time of survey, only 22% of respondents thought they knew how they would use their pension pot.

In addition the vast majority (87%) of respondents indicated that it was important to have flexibility around how they use their pensions funds.

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