The majority (92 per cent) of industry experts think that members should have a default retirement pathway, according to a poll conducted at the PLSA Annual Conference.

When asked industry experts their opinions on default retirement pathways, nearly eight in 10 (78 per cent) felt a default retirement pathway should include payment default income.

Furthermore, those who felt this way were then asked how a default income should be provided, to which 63 per cent of respondents voted for flexi access drawdown with a later life annuity purchase managed by a provider.

Meanwhile, 21 per cent of respondents said they would like it to be provided by flexi access drawdown managed on a sustainable basis by a provider, 13 per cent said decumulation collective defined contribution when available and 3 per cent said an annuity.

Commenting on this research, TPT Retirement Solutions defined contribution director, Philip Smith, said: “We live in a default world, and I think there is a real inherent tension between being auto-enrolled and being defaulted in.

“All of the success that relies on inertia and then getting to a point in retirement where we are expecting people to get really actively involved in making time and decisions. That’s really really challenging.”

Smith added that after speaking to members, TPT Retirement Solutions found that members found this “difficult”.

He said that “worryingly” there was no desire among people to take financial advice.

“That indicates to me that there is a real issue to deal with and default is the way of dealing with that,” he added.

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