Support for the 2015 freedom and choice reforms remains strong despite older pension savers having some reservations, industry experts have said, after research from Aviva revealed that many savers are not confident pension savings will last.

The research, produced in partnership with Age UK, found that while 48 per cent of mid-retirees had positive feelings about the increase in pension freedoms, fewer than one in ten expressing predominantly negative sentiments, although just 12 per cent were 'very positive'.

The vast majority (80 per cent) had mixed feelings, reflecting a mix of both benefits and drawbacks, while people with both defined contribution (DC) and defined benefit (DB) pensions were the most positive about the new flexibilities.

In addiiton to this, 25 per cent of those with both DB and DC pensions felt very positive about the new freedoms and felt that the change had benefited them or people they know, compared to just 16 per cent of those with DC pensions only.

"What is clear from this data is that, even with the benefit of hindsight, mid-retirees value the flexibility the pension freedom changes have brought, albeit they also recognise that this comes with some compromises," the report noted.

Indeed, the data showed that mid-retirees thought that the primary benefit of pension freedoms was 'having control of how you use your own money,' as mentioned by four in ten (40 per cent) respondents, followed by flexibility (19 per cent) and not having to buy an
annuity (16 per cent).

Speaking at the report launch, Age UK chair, Toby Strauss, observed that although people struggled to understand how their pension worked, there was a "strong sense of support" for the freedom and choice reforms.

"People value the flexibility to spend money, especially in the early stages of their retirement journey," he continued.

"However, as people age, taking active decisions about a private pension pot becomes more difficult, and people look for more certainty over their income."

According to the report, when respondents thought more deeply about the responsibility now placed on ordinary people, they started to worry about whether they could make the right decisions and the implications for their well-being in retirement.

Overall, just over one in ten (12 per cent) DC pension holders strongly agreed that they were confident that they were on track to make pension savings last for life.

This figure fell to just 7 per cent of those with DC pensions only, and when asked to consider how much longer their DC money would last, nearly four in ten (38 per cent) said they did not know.

Also speaking at the report launch, The Pensions Regulator (TPR) director of policy and public affairs, Patrick Coyne, suggested that a solution may be the introduction of a "sat-nav for retirement."

"We need a dynamic system that guides the way, adjusting for people from where they want to go.

"Retirement isn't a single destination; it's an open boat, as people want to go to different places and face bumps along the way," he added.

Meanwhile, Strauss argued that mid-retirees' lack of financial security could be due to "an awful lot of people under planning their likely longevity."

Aviva's research showed that almost one in five (17 per cent) men and one in ten women (11 per cent) aged 65-69 now did not expect to live this long when they were in their fifties.

The number was even bigger for the over-75s cohort—three in ten did not think they would live to see 75, and nearly seven in ten still expected someone aged between 65- 75 to die before they were 85, despite the most common age of death being 91.

The report claimed that the tendency to underestimate life expectancy, even among those in their late 60s and 70s, would likely lead to 'sub-optimal' financial decisions.

It concluded that a particular concern was that mid-retirees calculating the 'payback' on later-life annuities may base their assumptions on incorrect projections, making these options appear to offer poor value compared to the reality of their longer lifespans.

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