Over a quarter (28 per cent) of pensioners generate at least some of their income through working, new analysis from IRN Research has shown.

The research report revealed that a further 44 per cent of people aged over 50 expected to do the same once in receipt of their pension.

IRN stipulated that this rise in partial retirement will in turn see a rise in the percentage of individuals taking only part of their pension into cash, with 51 per cent of pension savers who are aiming for partial retirement expecting to convert only some of their pension at that point.

The findings echo recent research from Profile Pensions, which revealed that a third of people planned to take a tax-free lump sum from their pension.

It also argued that pension freedoms have already radically changed the pension landscape, predicting that this will continue to evolve further.

This follows warnings from the Financial Conduct Authority (FCA) that the introduction of pension freedoms had partly driven a “significant risk of harm” to pension investors.

The report added: “Consumers need professional help before they access their pensions and they show a willingness to consult with professionals before deciding what to do.“

The FCA had recently introduced new default investment pathways, designed to support consumers entering into drawdown without advice, however this has been delayed by six months due to the ongoing Covid-19 pandemic.

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