Many workers approaching retirement remain unclear about their pension savings and retirement income needs, reinforcing the growing demand for retirement guidance, Wealth at work has argued.

Research among 2,000 UK workers with defined contribution pensions found that 39% of those aged 55 and over did not have a clear retirement income goal, while 19% were unsure how much their pension would be worth when they retired. Just 27% had calculated what they were likely to have at retirement, despite 40% saying they had already delayed retiring.

The study also found that 38% of over-55s did not feel supported by their employer in understanding their pension, compared with 30% across all age groups, while 28% said they would like help setting a retirement income goal.

This comes despite an increasing focus on how members are supported in accessing their retirement savings. The Pension Schemes Act, introduced in April, is placing greater emphasis on the support available to individuals as they approach and enter retirement, including a move towards more structured retirement journeys and the introduction of pre-selected or ‘default’ retirement income options designed to support decision-making.

This is reinforced by research from the Pensions Policy Institute (PPI), which argued that well-designed guided retirement solutions can improve decumulation outcomes, particularly when they are simple, well-governed and introduced at the right point in the member journey.

Wealth at work Director Jonathan Watts-Lay said: "Retirement decisions are complex and highly personal, and experience shows that many people want and need support with this.

"While new legislation is placing greater emphasis on how members are supported at retirement, there is a real risk that generic default pathways could lead people into decisions that don’t reflect their individual circumstances or needs. This is particularly important given that our research shows many people approaching retirement still lack clarity around what their pension will provide."

Watts-Lay added: "Our research also shows that many people are delaying retirement despite not having clarity around what their pensions are worth or having a clear retirement income goal in mind. This highlights the important role of guidance in helping individuals understand whether retirement is affordable and giving them greater confidence in their decisions. It can also help people decide if they may benefit from regulated investment advice."

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