Education is key to cutting the confusion from pensions, the Wealth Management Association advises
1st October 2015
The advice comes as new research reveals that many people are put off saving because they are confused by pensions
The government must invest more in education about long-term saving and investments, for both young people and adults, if it wants the population to retire comfortably, the Wealth Management Association (WMA) warns.
The warning comes after research from PricewaterhouseCoopers (PwC) revealed today that that six in 10 people have put off saving more into their pension because they don’t understand the system, with women and younger workers particularly unlikely to put money aside.
As the trade association for the wealth management industry, the WMA’s members reach over four million investors and manage in excess of £670 billion of the country’s wealth.
Liz Field, Chief Executive of the WMA, comments: “The government must educate the UK about managing their money and encourage a cultural change towards investment and saving.
“This cultural shift will not only help people retire more comfortably but it will also allow individuals to save money for a rainy day. Investing in shares also makes people active participants in the economy, as they have a vested interest in businesses doing well. A more invested population is actively engaged in the country’s economic performance, as they have a stake in the free market economy. A wider range of investors means a wider range of people interested in company success, and more people who can hold management accountable for their decisions.
“However, many people currently believe that investing in shares is an option only open to the very wealthy – but it is in fact something accessible to all. They have also been left confused by the changing face of pensions recently, whether it is pensions freedoms, auto-enrolment, cutting pensions tax relief, or the discussions about using pensions as ISAs.
“While we welcome the changes which allow people to manage their own assets and become more actively involved in planning for their future, the government must remember that education is key. Both children and adults should be educated about the benefits of investment and saving, and have the changes explained to them clearly. Only then will we see the population planning for their future with the ‘more secure and practical foundations of saving and long-term investment’ in mind, which George Osborne citied in his summer budget.”
Notes for Editors
About the Wealth Management Association (WMA)
- The Wealth Management Association (WMA) is a trade association that represents 186 wealth management firms (full members) and associate members who provide professional services to our full member firms.
- WMA members firms look after over £670 billion of wealth for over 4 million retail investors.
- WMA full members deal in stocks, shares and other financial instruments for individuals, trusts and charities through a range of services spanning execution only, advisory and discretionary fund management.
- The WMA exists to support its members and their clients in the following ways:
- To be an advocate for the sector with governments, regulators and the wider financial services community;
- To influence policy and also decision makers within the wider sector to the benefit of WMA members and their clients;
- To research and provide definitive information about the sector as required for members and in support of the influencing and advocacy objectives;
- To be a thought leader, to lead and stimulate debate and make members aware of emerging trends; challenging and provoking change.
- Facilitating the sharing of good practice, enabling the membership as a whole to benefit from the latest developments affecting the sector as well as providing support to enable them to develop good prescribe and overcome challenges.
- WMA firms operate across more than 580 sites, employing over 32 000 staff.
- These firms also run over 5.5 million client portfolios and carry out over 20 million trades a year.
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