Pension Income (Decumulation) 2020
01 Apr 2020
New Pension Report from IRN Research
This report is a consumer research report looking at how individuals generate income from their pensions. This covers the decumulation phase of the pension process. i.e. using the pension to generate income. This report studies the income generation process from the points of view of two types of consumers:
Pensioners: i.e. individuals who are currently receiving income from a pension. How did they act when they generated income? Interviews with 294 individuals were conducted.
Pension Savers: i.e. individuals aged 50+ who currently are saving into a pension and will be taking income over the next decade or so. How do they think they will act in the near future when they come to generate income from the pensions they own? Interviews with 371 individuals were conducted.
For this report, IRN Research commissioned research from MIS Group’s UK panel. The research was structured so that 2,077 nationally representative consumers aged 18+ were asked about their pension ownership, pension income and their actions
Pension Income Highlights
Partial retirement will become a more important feature of the pension market in the future than it is today. 28% of individuals who are currently receiving income from a pension (i.e. Pensioners) generate some of their income from working, even if part-time, while 44% of consumers aged 50+ who currently are saving into a pension and will be accessing their pensions over the next decade (i.e. Pension Savers) say they are planning to generate income from working, if only part-time, after they access their pensions.
The rise of partial retirement will in turn see a rise in the percentage of individuals deciding to convert only some of their pension(s) into cash/income: 51% of Pension Savers aiming for partial retirement (67% if don’t know responses are excluded) say they will convert only some of their pension(s) into income/cash when they partially retire.
See Related IRN Reports