Solely 35% of pension savers are assured about making retirement choices, a brand new report suggests.
This included primary retirement choices corresponding to selecting methods to entry their pensions once they attain retirement age.
Regardless of the challenges, solely 21% of savers plan to make use of a monetary adviser, in keeping with the report from office pension supplier TPT Retirement Options.
The report additionally discovered that the least engaged and assured savers had been additionally the least more likely to search skilled recommendation.
Two in 5 pension savers (39%) surveyed mentioned they had been at midnight about what they’ll do with nearly all of their pension financial savings at retirement age.
Philip Smith, DC director at TPT Retirement Options, mentioned: “Our analysis reveals many individuals are frightened about what to do with their pension once they come to retire.
“Numerous folks don’t know what to do with their financial savings however are additionally unwilling to pay for skilled monetary recommendation.”
The savers surveyed had been supportive of the Authorities’s proposals for a pot-for-life system, with 62% saying it could make it simpler for them to plan for retirement.
Two thirds (68%) of savers expressed an curiosity within the possibility of a default decumulation-style drawdown product that would supply pensioners with a gentle earnings for the remainder of their lives.
Mr Smith added: “It’s encouraging to see wider business reforms are equally specializing in this, and that the scheme savers themselves are in help of such measures, such because the introduce of a pot-for-life system. These modifications will help drive pension engagement by giving people the company to make decisions over their retirements, and hopefully construct pension savers confidence.”
Greater than half of pension pots are being cashed out in full as fewer folks search skilled steering, new figures from the FCA have revealed.
That was in comparison with simply over a 3rd (36%) moved into some type of drawdown and simply 8% used to purchase an annuity.
• TPT Retirement Options surveyed 2,500 outlined contribution members in February.
