Nearly two thirds (63 per cent) of defined contribution (DC) savers make a decision on their pension savings one year before or closer to retirement, research from AllianceBernstein has revealed, emphasising the importance of default DC strategies.

The survey found that the public’s wish to make firm decisions on their savings for retirement is low, with just under a fifth (17 per cent) planning to make decisions on their savings five years before they retire.

AllianceBernstein highlighted the findings as demonstration of the importance of a well-managed default strategy to- and through-retirement for those enrolled in DC pension schemes.

The research also demonstrated the public’s "clear" interest in receiving guaranteed income amid the current cost-of-living crisis, as almost half (43 per cent) would prefer a guaranteed retirement income where they take a percentage of their retirement pot as a lump sum and the remaining amount as a monthly income.

Commenting on the findings, AllianceBernstein portfolio manager responsible for multi asset solutions in EMEA, David Hutchins, said: “Our recent survey in collaboration with YouGov demonstrated that members need to be in a well-managed default strategy to ensure that those who make late decisions are not penalized.

"Most don't want to make a decision on their savings until the last possible moment. Members need help in managing their DC pension schemes to ensure their financial needs are met throughout their retirement. They can't do it alone.

“We've partnered with UK DC schemes for more than 14 years to provide their members with confidence and clarity so they can retire on their own terms.

“We support and are aligned with the government’s call to action for pension providers to help savers with a default journey for income in retirement."

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