Fewer than one in 10 (8 per cent) over-50s approaching retirement feel confident managing their pension savings themselves, research from People's Pension has revealed.

The latest New Choices, Big Decisions research found that caution dominated retirement planning, with more than two-thirds (69 per cent) of savers prioritising financial security or gradually transitioning into retirement.

Of these, 46 per cent said they prioritised protecting their pension savings or carefully managing withdrawals to ensure their money lasted, while 23 per cent planned to phase into retirement by gradually reducing their working hours and supplementing their income with pension savings.

In contrast, just 3 per cent planned to spend their pension savings more freely while they were still fit and active.

The findings come ahead of this week's Budget and highlight the challenges facing savers as they approach retirement, particularly around financial confidence and the complexity of retirement decisions.

Despite widespread caution, the research found that 75 per cent of over-50s valued the freedom to choose how and when to access their pension savings, while 71 per cent said flexibility mattered if their circumstances changed.

However, four in 10 (40 per cent) felt there was too much choice and would prefer guidance when making retirement decisions.

The research also highlighted concerns around retirement adequacy, with just 38 per cent of respondents believing they were on track for the retirement they wanted.

A further 37 per cent said they were making progress but might not have saved enough, while 12 per cent believed they were behind where they should be.

Meanwhile, 6 per cent admitted they did not know what an adequate level of retirement savings would look like, and 5 per cent did not believe they would ever be able to retire.

The findings also suggested that traditional retirement patterns were changing, with just 21 per cent expecting to stop working completely.

Instead, 44 per cent expected to continue working part-time or freelance, while another 25 per cent expected to reduce their workload but keep earning.

The research, conducted by YouGov among 1,011 UK adults aged 50 and over, also identified seven distinct retirement 'personas' that reflect different attitudes to managing pension savings.

The largest group, 'Cautious Carl', accounted for 27 per cent of respondents and represented those focused on carefully managing withdrawals to avoid running out of money.

This was followed by 'Winding Down Wendy' (23 per cent), representing those planning a gradual transition into retirement, and 'Secure Stan' (19 per cent), who prioritised predictable income and financial protection over flexibility.

Meanwhile, 16 per cent fell into categories characterised by a desire for greater support, including 'Help Me Harry' (8 per cent), who wanted clearer guidance, and 'Overwhelmed Olivia' (8 per cent), who found retirement planning too complicated.

Only 11 per cent were confident managing their pension independently or willing to spend their savings more freely.

People's Partnership director of proposition, Kirsty Ross, said: "Our research shows that a lack of confidence and financial understanding remains a significant barrier for many savers as they approach retirement.

"More cautious savers often want support and reassurance when making important decisions, but they also value the freedom to choose.

"The findings in our latest research suggest savers are not rejecting choice itself; instead, they want clearer, more supportive pathways into retirement that build confidence, helping them navigate retirement decisions without feeling overwhelmed."

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