Informed choice: consumer preferences for information on pensions

The lack of understanding of pensions amongst a large proportion of the UK adult population, combined with low levels of financial literacy generally, have been identified as significant barriers to saving for retirement. This article draws on the findings of the International Institute of Banking and Financial Services Financial Well-being Survey (IIBFS FWS) to examine consumer understanding of pensions and to identify the sources from which they would like to receive more information on pensions. The programme of initiatives being delivered under the auspices of the Government's Informed Choice strategy are considered in the context of consumer preferences for sources of pension information. The results from the IIBFS FWS support the view that there is a lack of understanding of pensions, particularly amongst women. They also show that initiatives for Government to provide more information and to encourage courses in schools and colleges about saving for retirement would be welcomed. However, people show less support for receiving information about saving for retirement from their employer, perhaps because of growing job insecurity and recent problems with company pension schemes.