Less than two fifths (39 per cent) of UK adults aged 50 and over took advice from a financial adviser before taking money out of their pension, research from Royal London has revealed.

The research, shared amid the 10-year anniversary of the freedom and choice reforms, showed that 8 per cent of savers took their tax-free cash lump sum within six months of their 55th birthday, which is currently the earliest age at which most people can access money from their pension.

But despite comments at the time that people could buy a Lamborghini with their retirement pot if they so wished, Royal London pensions and tax expert, Clara Moffat, pointed out that "we’ve found little evidence of people doing so".

According to the research, more than half (55 per cent) of those eligible to take a tax-free lump sum chose to take the maximum of 25 per cent of their pension.

Nearly a third (32 per cent) of those who took out a tax-free cash lump sum used it to pay off a home loan or other debt, with over 15 per cent paying off their mortgage debt and 18 per cent paying off other borrowing, such as a credit card or car finance.

In addition to this, more than a quarter (26 per cent) of those who opted to take a tax-free sum simply deposited the money in a bank or savings account, while 19 per cent spent the money on home improvements and 8 per cent gave it to family members.

However, nearly a fifth (18 per cent) of those eligible to make a withdrawal had not taken any advice at all, whether from financial professionals or family and friends, before taking money out of their pension.

In addition to this, only 20 per cent of consumers aged 50 or over with a DC or personal pension made use of guidance from government-backed advisory service Pension Wise.

Indeed, Moffat acknowledged that the changes have also left consumers making difficult decisions that could affect their standard of living for many years to come.

“It is concerning that so few people took financial advice or made use of free guidance services, such as Pension Wise," she continued. "Worryingly, our research shows that many made decisions that may not have been in their best interests over the longer-term."

Savers were aware of some of the issues they should be considering though, as 37 per cent of those with a DC or personal pension considered whether taking out a lump sum would mean they paid more tax or moved them into a higher tax bracket.

But many savers were still worried about their retirement savings, as more than two fifths (42 per cent) of those aged 50 or over said they worried about running out of money in retirement.

Moffat highlighted this as demonstration of the need for more people to access the right level of support, including from their pension provider; pointing out that this is something that the Financial Conduct Authority is exploring this year.

“We would encourage people facing complex financial decisions to take advice from a financial adviser - it could be time, and money, well spent," she added.

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