Many savers are still not accessing advice on pensions ten years after the government implemented the ‘freedom and choice’ reforms, which allowed people to access their pensions with greater flexibility, the Institute and Faculty of Actuaries (IFoA) has revealed.

The report, which focused on public attitudes to pension access and flexibility, found that 43 per cent of respondents took no advice or guidance (40 per cent in 2022) regarding understanding and accessing pension savings.

Despite free guidance through the government’s pension wise service, 20 per cent of those surveyed said they had used it (22 per cent in 2022).

The survey also found that 15 per cent of respondents said they did not fully understand their options (up from 11 per cent in 2022), and 44 per cent said they had no idea how their pension savings were being invested.

Nearly a quarter (24 per cent) of those surveyed were worried about making the wrong decision and running out of money in retirement (22 per cent in 2022).

The report concluded that the UK government must use 'phase 2' of the pensions review to address worrying trends in decision-making and pension saving.

IFoA pensions board chair, Debbie Webb, said it was “particularly worrying” that so few people were taking valuable advice and guidance to help with that decision-making.

“Individuals, particularly those with defined contribution pensions, are left to manage the risk of ensuring their savings will last through their retirement without knowing how long they will live.

"In 2025, it is more important than ever that they are encouraged – and helped – to take advice or guidance to help them make the best investment choices for their retirement needs," she suggested.

“The results we have seen in this survey point to the need to re-examine how pension savers are supported to secure a good standard of living in retirement.”

Echoing Webb’s concerns, Pensions and Lifetime Savings Association (PLSA) head of strategic policy, Alyshia Harrington-Clark, claimed the research painted “a familiar picture."

“Ten years since pension freedoms were introduced, many savers are still unsure about how much they’ll need for retirement, and fewer are seeking advice to make informed decisions - yet more are taking lump sums,” she continued.

“This worrying gap shows how urgent it is to deliver a system that helps savers secure an adequate income during retirement.”

Harrington-Clark highlighted the upcoming pension schemes bill as an opportunity to help pension providers better support savers in preparing for the financial challenges of later life, as well as the second phase of the pensions review, which may consider reforms to the automatic enrolment framework and default levels of contribution.

“In the meantime, there is more we can do to help savers help themselves,” she argued.

“Many savers underestimate their retirement needs, and without clear guidance and engagement, they risk not achieving their desired lifestyle. Improvements in these areas are key to ensuring more people can secure a financially stable retirement.”

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