Only 35% of pension savers are confident about making retirement decisions, a new report suggests.
This included basic retirement decisions such as choosing how to access their pensions when they reach retirement age.
Despite the challenges, only 21% of savers plan to use a financial adviser, according to the report from workplace pension provider TPT Retirement Solutions.
The report also found that the least engaged and confident savers were also the least likely to seek professional advice.
Two in five pension savers (39%) surveyed said they were in the dark about what they will do with the majority of their pension savings at retirement age.
Philip Smith, DC director at TPT Retirement Solutions, said: “Our research shows many people are worried about what to do with their pension when they come to retire.
"Lots of people don’t know what to do with their savings but are also unwilling to pay for professional financial advice.”
The savers surveyed were supportive of the Government’s proposals for a pot-for-life system, with 62% saying it would make it easier for them to plan for retirement.
Two thirds (68%) of savers expressed an interest in the option of a default decumulation-style drawdown product that would provide pensioners with a steady income for the rest of their lives.
Mr Smith added: “It is encouraging to see wider industry reforms are similarly focusing on this, and that the scheme savers themselves are in support of such measures, such as the introduce of a pot-for-life system. These changes can help drive pension engagement by giving individuals the agency to make choices over their retirements, and hopefully build pension savers confidence.”
More than half of pension pots are being cashed out in full as fewer people seek professional guidance, new figures from the FCA have revealed.
The regulator’s new retirement income market data published in April showed that around 56% of all pension pots accessed were cashed out in full.
That was compared to just over a third (36%) moved into some form of drawdown and just 8% used to buy an annuity.
• TPT Retirement Solutions surveyed 2,500 defined contribution members in February.