Only 42% of people have a clear understanding of what their retirement options are, leaving them at risk of sleepwalking into bad decisions, new research has warned.
The figure, compiled by Hargreaves Lansdown, increases slightly to 45% of the over-55s, but still points to a lack of understanding even among the older people.
The firm said the lack of understanding leaves people at risk of making decisions they can’t unwind, potentially running out of money or incurring unnecessary tax bills.
Hargreaves pointed out that the upcoming targeted support reforms will be hugely helpful in guiding people to understand what is right for them. It added that those able to access financial advice will be supported through their decisions.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Those who have access to a financial adviser will have valuable support navigating the processes in the run up to, and through, retirement.”
She pointed out that advisers and Financial Planners will talk clients through issues such as attitude to risk, the impact of long-term inflation on purchasing power, how to take an income and whether flexibility or certainty is more important, or a combination of both.”
She added that the targeted support reforms coming in from April will be good news for those without access to a financial adviser. “These will enable providers to really step up the support they can offer to their customers by being able to offer options based on what might work for 'people like them.' Such reforms have the potential to be a real gamechanger for people navigating the complex retirement landscape.”
• The survey of 1,500 people was conducted by Opinium on behalf of Hargreaves Lansdown in October 2025.