Three-quarters, 76%, of over 50s say that appetite for risk is an important factor when deciding what to do with their pension pot, according to new research.

Standard Life said its study suggests that people know they have less time to recoup losses ahead of retirement.

The pension specialist said alternatively older people may be running down their savings more quickly if taking an income from a pension in drawdown.

The research showed that two-fifths, 41%, of over 50s yet to retire expect to reduce their risk tolerance. Just 8% anticipate an increase in their appetite to take on more risk with their pension savings.

Standard Life said the broad trends mirror data from Dynamic Planner which demonstrates how we become less willing to take risk as we age, with tolerance to risk steeply tapering off at the point we head into retirement.

Claire Altman, managing director of individual retirement at Standard Life, said: “Investment risk is an ongoing area of focus for regulators, the industry and customers. Attitudes towards risk will differ from person to person, but recent market volatility has clearly shown the impact this can have on an individual’s pension savings.”

She said research from Oxford Risk has shown that emotional reactions to market movements costs the average investor around 3% per year in lost returns. “This is especially true for those in the Retirement Risk Zone, when many may be thinking about or already withdrawing their pension savings.

“During this time retirement savings are more vulnerable to any major losses which could have a knock-on impact on someone’s retirement lifestyle.”

• Opinium conducted research between 25 July 2024 and 12 August 2024 among 2,000 people over the age of 50.