71.6 percent of investors still want a guaranteed income in retirement; Very high interest in drawdown but only for part of pension pot; ‘Blended’ income the optimal solution for most investors; Budget reforms have ‘rehabilitated’ pensions: 93.8% approve of the new rules. Cars cited as most popular single expenditure item for pension cash.

Our latest survey data indicates the Chancellor has ‘achieved the impossible’ in making pensions popular again. Investors already show a good understanding of how the opportunities can serve them, by indicating an intention to use a mix of annuities and drawdown to generate retirement income. Tom McPhail, Head of Pensions Research: “The Budget reforms have had a remarkable impact on investor sentiment towards pensions. At a stroke the Chancellor has reinvigorated pensions and made retirement saving attractive once more.”

Investors seem to be showing a good understanding of the choices available to them, with strong preferences expressed both for the security of an annuity and for the flexibility of drawdown. In keeping with the FCA’s recent analysis, we expect the majority of investors to opt for a blended retirement income comprising some annuity for security and some drawdown for flexibility and growth. For investors looking to take cash from their pension, the most popular single expenditure item was buying a car; this came up higher than holidays, home improvements, or even spending on family or children. No doubt this will be music to the ears of motor dealers.  We were interested to see that investor interest in drawing money from pensions to invest in property appears to be waning, with only around 3.5% selecting this option.

But investors won’t necessarily blow the cash: many are already showing a prudent approach. By far the most popular two intended uses for cash from pensions were to provide an income to live on, and to reinvest in ISAs. The various waves of quantitative research were conducted by Hargreaves Lansdown from 23 October to 27 November 2014.  In total we had responses from 6,912 investors, including but not restricted to our own clients.

New research published today in the scientific journal Occupational Medicine shows that throughout the British Isles, mental health disorders are the most common work-related ill health problem. They account for over half of all cases reported by occupational physicians.

The researchers, led by a team from Manchester University, studied data across three surveillance schemes from 2005 to 2012. It is the first time that a study has investigated  the incidence of work related ill health and compared detailed data across Great Britain, Northern Ireland and the Republic of Ireland. Musculoskeletal disorders such as back and limb pain were the second most frequently reported across all three countries. The study also found that asbestos occupational respiratory disease was commoner in Great Britain and Northern Ireland than in the Republic of Ireland. This is likely to be due to the historical use of asbestos being more prominent in the UK.

The Society of Occupational Medicine today urged employers to do more to tackle mental health problems and invest in workplace health. One in four adults will experience a mental health condition each year. Mental health is thought to cost UK employers £26 billion each year – on average £1035 per employee.

Dr Alasdair Emslie, President of the Society said, “As demands on the NHS continue to increase, the UK needs a radical rethink about how it delivers healthcare with a much greater focus on prevention. The workplace is the ideal environment to cost-effectively address a variety of health problems including supporting those with mental health problems. Early recognition of the signs of stress, anxiety and depression is the crucial first step in dealing with such problems and preventing them from becoming more serious. “

Occupational health specialists have the ability to improve the health of thousands of workers by bringing in policies and wellbeing programmes – a General Practitioner can affect a tiny proportion of this number by seeing them one to one for a few minutes each year.”

Professor Raymond Agius, one of the authors of the study said, “This study shows that throughout the British Isles mental health problems account for over half of all work-related ill health reported by occupational physicians, and reinforces the need for more efforts in prevention and rehabilitation to foster mental wellbeing at work”.

There is good evidence that better access to occupational health services and psychological support can help employees with mental health problems get back to work quickly.  However, it is more important that companies take a proactive approach and create a culture of ‘good work’ and promote positive employee wellbeing. By doing this they will not only increase productivity and reduce staff sickness and turnover but also reduce the burden on the NHS.