Just over a third (35 per cent) of pension savers are confident in making basic retirement decisions, such as choosing how to access their pension when they reach retirement age, according to research from TPT Retirement Solutions.

Since 2015 when the pension freedoms legislation came into force, people with DC pension aged over 55 have had the freedom to choose how to use their retirement savings, including the option to withdraw 25 per cent of their pension pot tax-free.

However, the survey found there was a large proportion of defined contribution (DC) members that remained unsure on how to use their use their savings when they reach retirement, with nearly two fifths (39 per cent) unsure what they will do with the bulk of their pension savings when they retire.

Furthermore, the research revealed that, despite this uncertainty, four in five (79 per cent) savers do not plan to use a financial adviser to help them with retirement decisions.

However, more than six in 10 (62 per cent) savers said they support the potential government introduction of a new pot for life system, despite confusion around retirement planning and decisions.

In addition to this, the research showed that 68 per cent of savers expressed an interest in a default decumulation-style drawdown product that would provide a steady income for the rest of savers’ lives.

Alongside the research, TPT Retirement Solutions announced plans to launch a digital DC proposition in the second half of 2024, which aims to simply the process of retiring and make it easier for savers to transition from accumulation to decumulation, with tools that aim to make retirement choices easier to understand.

Commenting on the findings, TPT Retirement Solutions DC director, Philip Smith, 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 launch of our new DC offering later this year should help address these issues in making decisions for retirement easier.

“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 introduce 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.”

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