Retirement planning uncertainty and confusion surrounding pensions is “worryingly on the rise”, it has been said.

According to the Office for National Statistics’ Wealth and Assets Survey, confusion regarding pension savings had risen over the period, July 2016 to December 2016.

The ONS found that one of the main reasons for not being in a pension was not knowing enough about it, which saw an increase from 11 per cent in July 2014 to June 2016, to 15 per cent in July to December 2016.

Despite this, the ONS noted that in the period July 2016 to December 2016, of all adults questioned, 38 per cent believed employer pension schemes were the safest way to save for retirement, a slight fall from 40 per cent in July 2014 to June 2016. This was followed by property as the next most popular retirement income with 29 per cent.

While pensions and property have been the top two options since July 2010, the ONS reported, the most recent period saw the first time the percentage of individuals choosing employer pension schemes as the safest way to save for retirement fell since July 2010.

In contrast, the percentage of people choosing personal pensions as the safest option grew from 11 per cent in July 2014 to June 2016 to 14 per cent in July 2016 to December 2016.

Just under half, 49 per cent, of those surveyed now think investing in property is the best way to make the most of your money for retirement, while only 20 per cent thought an employer pension makes the most of their money.

In addition, the state pension continued to be the top option (since July 2010) as a source respondents expect to provide income in their retirement. Eighty six per cent of people rated this as the top source of expected income, up from 81 or 82 per cent in previous periods.

Of those under 60, the most frequently reported reason (55 per cent) for not contributing to a pension was low income, not working or still in education.

Moreover, looking at the public’s awareness of new pension policies, the ONS noted that 84 per cent of those aged 22 or over but under the state pension age said they were aware of auto-enrolment.

Hargreaves Lansdown senior pension analyst Nathan Long commented: “Confusion with pension planning is worryingly on the rise. Investing in property is seen as the best way of making most of your money despite it being one of the least tax efficient ways to invest.

“More people are now citing a lack of understanding as the reason they are not in their workplace pension, even though auto-enrolment means most will not make any decisions whatsoever to join. The tail end of the retirement journey also is starting to show signs of people expecting to work longer, but with more than a quarter of older people not properly planning their retirement the reality could be even more severe. As people live longer and the cost of social care rises, the likelihood of inheritances acting as additional income in retirement falls."

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