Meeting new people is fun and naturally when people ask what I do, I often start talking about Magical Penny.
Because of this revelation earlier on in the week, the conversation in the pub the other day turned to pensions (Yes I know how cool we are!).
Some of my friends have no pensions (the horror!), but two friends mentioned they had final salary pension schemes, whilst others had stakeholder pensions, or private pensions.
Pensions are one the most confusing financial product out there!
According to a recent study by the University of Bristol and Confused.com, pensions are the most confusing product, with 83.9% of people finding them confusing.
In fact 33.8% of people said they were ‘very’ or ‘totally’ confused by pensions. That’s over a 3rd of the 6000 respondents in the survey!
I enjoy learning about financial products and even I struggle to get my head around all the different options sometimes.
Confusion on pensions is not surprising though.
There is so much choice of pension products and within each pension product there are thousands of funds and investments to choose from. Most people are either crippled by too much choice, don’t think they need to save just yet or are saving in a pension but are likely to be getting a poor deal.
Introducing the Magical Penny Pension Series
Magical Penny‘s primary aim is to help you understand how you can grow your pennies and get started on saving for your future.
Starting only a few years earlier than you might have otherwise can mean the difference of tens of thousands of pounds over the course of your lifetime so it’s important to learn about the differences between different pension products and if you even need to have a pension at all (hint: it’s not always the best way to save your your future!).
Before the series starts I would love to hear your questions or suggestions on what pension information you are most interested in. Leave a comment on this post or send me an email at adam AT magicalpenny.com.
Have a great week and keep saving. 🙂
Source: Confused Nation study:
The study revealed that:
- 71.9% of people suffer from confusion over how to make money and use it wisely;
- Pensions are the most confusing product, with 83.9% of people finding them confusing;
- 33.8% of people said they were ‘very’ or ‘totally’ confused by pensions;
- 79.1% of people said they found mortgages confusing;
- Credit cards were the least confusing product – 40% of people said they were not at all confused by credit cards.
The study was developed by the University of Bristol and Confused.com, which covers a cross section of 6,000 UK residents. It explores how people feel about modern life and how they cope with its demands. The findings have been used to create a new website http://www.confusednation.co.uk which helps baffled Brits by providing clarity on confusing issues.