A fifth (20 per cent) of over 50s rely or intend to rely on a defined benefit (DB) pension providing almost half (44 per cent) of their retirement income, despite evidence that access to DB pensions will drop off in future, research from Standard Life has found.

The Retirement Income Almanac, which tracks the different sources of retirement income for over 50s, found that 27 per cent of over 80s and 23 per cent among over 70s said they rely or intend to rely on DB pensions, compared to 20 per cent of over 60s and 15 per cent of over 50s.

The findings also highlighted the difference in the expected value of these generous pension arrangements, with over 80s saying 56 per cent of their income comes from DB pensions, while the figure for over 60s and 70s was 46 per cent and 45 per cent respectively.

Instead, the majority (73 per cent) of over 50s expect the state pension to total 51 per cent of their income in retirement, while 46 per cent have used, or intend to use, general savings and investments to help fund their retirement, contributing an average of 20 per cent to their overall income in retirement.

Defined contribution (DC) pensions were another key source of income, as nearly a third (27 per cent) of over 50s expected their DC workplace pension pot to make up 37 per cent of retirement income.

Alongside this, just over a fifth (21 per cent) of over 50s have or expect to have the income from a partner’s pension pot, making up 25 per cent of their overall income in retirement.

Others are looking to their property, as over one in ten (13 per cent) of over 50s use, or intend to use, the income tied up in their home to fund their retirements, making up 15 per cent of their overall retirement income.

Additionally, 5 per cent have or intend to use income from an investment property, making up a "sizeable" 26 per cent of their retirement income.

Standard Life also found that a small number are turning to children or family members for financial support in retirement, noting that whilst this only makes up 2 per cent of over 50s, the proportion of retirement income derived from this source is a "sizeable" 21 per cent.

Commenting on the findings, Standard Life managing director of individual retirement, Claire Altman, stated: “Pension planning grows increasingly complex for retirees as we continue to move away from the era of guaranteed DB pensions, with people increasingly reliant on more varied sources of income.

“This data also highlights the reliance on the state pension and the inherent challenges around potential changes to the state pension age. Almost three quarters of over 50’s say it makes up, or will make up, around half of their income in retirement.

“For those approaching or at retirement, the focus will be on how to access their savings and make them work harder.

“Most people will want a degree of guaranteed income to cover essential spending but the reality is almost a third (31 per cent) of over 50s say they are unsure or don’t know how to use or plan to use their savings.

"This makes it all the more imperative to make sure we, as an industry, are helping people make the best decisions around how to manage their retirement income.”

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