Pension freedoms have boosted the average pension pot to £50,000 up from £29,000 in 2015, according to Aegon.

The 6 April 2017 will mark two years on from the launch of the freedoms, which saw the biggest shake up to pensions in decades. It allowed anyone over the age of 55 to access their DC pot freely, removing the compulsory annuity purchase that had existed.

Research by Aegon has found that as a direct result of the freedoms, 14 per cent of working age people are saving more into their pension, equating to around 5.5 million people.

The pension freedoms have also directly prompted more people to consider their future plans. Fifteen per cent of people have realised they need to plan more for retirement, up from 10 per cent in April 2016 and the proportion of people engaging with an adviser on their plans for retirement has almost doubled in the last 12 months.

Furthermore, since the launch of the freedoms there has been an increase in the number of people reviewing their retirement plans. In April 2015 half of the UK population had taken no steps to review their retirement plans, but positively this has fallen by 15 per cent, to just over a third (36 per cent). In fact, one in five (22 per cent) people have reviewed their plans in the past six months alone.

Commenting, Aegon pensions director Steven Cameron said: “The 2015 pension reforms put many more retirees in the driver’s seat for the first time. Two years on and all the signs point to the pension freedoms having paved the way for a smoother road to retirement. People have moved up a gear, saving more and becoming more engaged with their pensions.

“Crucially, the proportion of people speaking to an adviser about their retirement saving and income options is almost double what it was in April 2016. Giving retirees the freedom to do as they please with their money is having an impact not only on those who are taking advantage of that freedom today, but the trickle effect is positive down the generations.

“However, there’s still a long way to go. People will need to accelerate their saving to reach their retirement destination and make the UK a nation of long-term savers. Over a third of the adult population have never taken any action that affects their plans for retirement and these people must be encouraged to engage and save more, or face a very uncertain future.”

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