Just over one-third of pension savers (35%) feel confident to make decisions such as choosing how to access their pension when they reach retirement age, according to research by workplace pension scheme provider TPT Retirement Solutions.
Its survey of more than 2,500 defined contribution (DC) scheme members also found that a similar proportion of respondents were unsure about how to best deploy their savings when they retire, with 39% not knowing what they will do with the majority of their pension savings when they reach retirement age.
A fifth (21%) said they plan to use a financial advisor to make retirement decisions, while the least engaged and confident savers are least likely to seek professional advice.
Almost two-thirds (62%) said they support the potential introduction of a new pot-for-life style system, while 68% expressed an interest in the option of a default decumulation-style drawdown product that would provide pensioners with a steady income for the rest of their lives.
Philip Smith, DC director at TPT Retirement Solutions, said: “Our research shows many people are worried about what to do with their pension when they come to retire. Lots of people don’t know what to do with their savings but are also unwilling to pay for professional financial advice. The new system being considered by the government could make it easier for people to plan for retirement, as they would only have to manage one pension pot.
“It is encouraging to see wider industry reforms are similarly focusing on this, and that the scheme savers themselves are in support of such measures, such as the introduction of a pot-for-life system. These changes can help drive pension engagement by giving individuals the agency to make choices over their retirements, and hopefully build pension savers confidence.”