Pensions confusion ‘leaving dentists poorly prepared for retirement’

Many dentists in the UK are heading towards retirement feeling badly prepared due to a lack of understanding of the pension options available to them.

This is according to a new report from Wesleyan, which polled 100 dentists earlier this year and found that 78 percent of them did not understand the key features of pensions or how much they should be saving each month.

It was shown that 28 percent incorrectly believed they can withdraw their full pension fund tax-free at any time, while the amount they believe they will need each year in retirement has fallen from 48,150 pounds in 2014 to 39,602 pounds in 2016.

Although there has been widespread publicity about pension changes in the past year, only 24 percent said it had prompted them to carry out any research into pensions in the past 12 months.

Meanwhile, 12 percent said they have no intention of researching their retirement plans over the next year, 76 percent do not understand the pension freedom reforms put in place last spring, and 75 percent do not know how much the government contributes for every pound invested in a pension.

Vicki Wentworth, chief customer and strategy officer at Wesleyan, said: "There is clearly still some confusion around what pensions are there to do and how they can help you plan for the future, but proper planning is essential to help us enjoy the standard of living we dream of in retirement."