The majority (84 per cent) of those who have accessed their retirement savings since the introduction of pension freedoms in April 2015 said they have benefited from taking money from their pension, research from Standard Life has revealed.

Among them, 46 per cent expressed that they feel they have “significantly” benefited from withdrawing funds from their pension.

The research also found that four in five (79 per cent) said they like having the choice to access their pension in the way they choose.

The research revealed that people tended to use their pension money gradually, despite initial concerns that savers would spend their retirement savings frivolously.

In particular, the research showed that 24 per cent have used the money to ease day-to-day finances, 21 per cent paid down debt and 28 per cent have invested the money for the future.

However, Standard Life said that while pension freedoms have given people choice and flexibility, the next decade presents a different challenge.

It suggested that the long-term impact of pension freedoms remains uncertain and careful planning will be “critical” in ensuring that people have access to greater support when making decisions about their retirement income and do not run out of money to fund their retirement. 

Commenting on the research, Standard Life retirement savings director, Mike Ambery, said: “Pension freedoms have given retirees greater control over their financial future, and most have accessed their savings with restraint.

“It’s good to see that most retirees seem to reflect on pensions freedoms positively.

“That being said, it’s worth noting a couple of helpful factors that retirees shouldn’t rely on indefinitely, including the fact that strong equity market returns over the past decade have provided a strong tailwind.”

He emphasised that with freedom comes responsibility, suggesting that people need access to the right guidance and support to gain a clear view of their options and ensure their money lasts.

Ambery pointed out that as the first generation of retirees under pensions freedoms reach later life, it is a “good time” to reflect on the importance of planning, ideally with professional support, to manage savings effectively and sustain longer-term pension income.

“We support government and regulators in pressing on with plans for providing better help for people and making accessing retirement solutions more straightforward, particularly the ongoing consultation on targeted support,” he said.

“If implemented properly, this should lead to greatly improved outcomes for retirees.”

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