Almost four in five (79 per cent) over-55s do not know how much income their pension will provide in retirement, while more than a third do not understand how the state pension operates, analysis from Freetrade has revealed.

The study of 2,000 UK adults found that just 21 per cent of over-55s knew, even roughly, what their pension was expected to pay them in retirement, highlighting widespread uncertainty over retirement finances.

Across all age groups, only 18 per cent understood their expected retirement income.

The research also found significant confusion about the state pension triple lock, with fewer than half (45 per cent) of respondents understanding how the policy works.

One in five (20 per cent) admitted they did not know how the triple lock worked, while 11 per cent incorrectly believed it guaranteed everyone three sources of retirement income: the state pension, a workplace pension and private savings.

Among over-55s, 35 per cent did not understand how the state pension operated.

The findings also highlighted concerns about retirement preparedness, with 39 per cent of over-55s and more than half (51 per cent) of those aged 45-54 admitting they felt unprepared for retirement.

The research follows the government's latest Budget, which confirmed plans to adjust the state pension triple lock from April 2030, subject to the outcome of the next election, alongside plans to bring unused pension funds within the scope of inheritance tax from April 2027.

Freetrade policy lead, Luke Kosky, warned that uncertainty over retirement income posed a more immediate challenge for savers than political debate surrounding the triple lock.

"The triple lock has become one of Britain's most fiercely debated policies, but the real pension focus should be elsewhere," he argued.

"Millions of Britons, including those just a few years from retirement, are planning around an income they don't fully understand."

Kosky stressed that while pension policy could change, individuals could take steps to improve their understanding of their retirement savings.

"Pension policies are always open to change, and no one can say with certainty what the rules will be in 10 or 20 years, or even what the retirement age will be," he continued.

"What people can control is their own planning and saving. Checking your state pension forecast and tracking down old workplace pensions is the best place to start, which the new pension dashboard should be able to help with."

He also encouraged savers to consider the impact of regular pension contributions, arguing that even small amounts could help improve long-term retirement outcomes.

"You don't need large sums to make a difference. Small, regular contributions to a workplace or personal pension add up over time, and can give you a retirement plan that doesn't hinge on the next political promise," Kosky concluded.

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