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Empowering people on pensions and investments

3 min read 21 Mar 25

A lack of understanding of pensions and investments is preventing people from investing for their future.

A fifth of Brits feel overwhelmed when it comes to thinking about their financial future, and 35% don’t feel confident about making long-term financial decisions – according to new research* commissioned by M&G.

It’s very clear that people don’t currently know where to seek financial advice. 76% haven’t sought financial advice in the last five years and research shows that two thirds (67%) of people think more education on how to plan for later life would be helpful.

As part of the research, M&G have made some recommendations, including:

  • A review of financial education provision so that school leavers understand basic principles related to pension savings, so they can boost returns at different stages of their savings journey.
  • Better access to affordable financial advice, ensuring the UK has the right regulatory architecture for regular savers to tap into bespoke, simple, affordable advice, guidance and targeted support.

Educating young people

To support younger generations M&G believe a review of financial education provision should examine how well-equipped school leavers are in understanding basic principles related to pension savings. There is a significant opportunity to educate those coming up to school leaving age about the benefits of compounding, differences between cash and equity investing, how asset allocation dictates savings outcomes and the potential to boost returns, as well as an appreciation of what risk means when it comes to investment decisions.

To build on this, further consideration should also be given to mid-life education opportunities so that individuals can take stock of their financial circumstances and consider taking action.

Better access to affordable financial advice

Strengthening people’s financial literacy at an earlier age would help build financial confidence and contribute to greater take-up of financial advice. From M&G’s social media analysis*, there is clear appetite and yet the numbers seeking advice remain low. Only 20% of Brits sought financial advice from a professional adviser in the last five years, according to M&G’s research.

Getting the regulatory architecture right so that regular savers can use affordable advice, guidance and targeted support has huge potential to bring about cultural change. Alongside providing advice in a way that resonates, there is a need to focus on real life testimony of individuals who have planned for later life and are enjoying a wealth of experiences after retirement.

* Agenda for Change: M&G (2025) Changing the conversation: Reframing the debate on later life (London: M&G) March 2025

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"M&G Wealth Advice” is a trading name of M&G Wealth Advice Limited which is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 5739054. Authorised and regulated by the Financial Conduct Authority.

M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.