Just under half (48 per cent) of savers do not know how long their retirement savings will need to last them, including 45 per cent of those aged 55 and above, according to research from The People’s Pension.

The survey, conducted by YouGov, also found that nearly a third (28 per cent) of all respondents had no idea what to do with the savings they had built up for retirement.

However, three-quarters (75 per cent) of UK adults who had a pension stated that they would consider taking guidance about how to make their savings last through retirement from a pension provider with a legal duty to put their interests first.

Furthermore, when presented with a selection of options, nearly four in ten (37 per cent) of those who are saving for retirement would be prepared to be guided towards taking a pension that was split between an annuity and a flexible income pot, after taking a tax-free lump sum up-front.

A further 35 per cent of respondents chose a guaranteed regular income only option after taking the tax-free lump sum.

Despite this, the survey highlighted a broader trend of unpreparedness around retirement, with more than a third (35 per cent) stating that they do not know when they will retire, whilst 22 per cent of those aged 55 and over were uncertain when they will stop working.

Furthermore, just over one in 10 (12 per cent) respondents knew or guessed the weekly value of the UK state pension, falling to as low as three per cent amongst younger savers aged 18-24.

B&CE director of policy and external affairs, Phil Brown, highlighted the latest research as further evidence that pension savers are “crying out for guidance” as to how they should approach retirement.

“It’s clear there is an opportunity for the industry and master trusts are well placed to meet it,” he continued.

“Master trusts have an opportunity to develop the retirement products which will meet the needs of many for security as well as providing flexibility.

“This means a coming of age for well-governed auto enrolment schemes – as they move from being saving vehicles for employees to also providing their pensions in retirement.”

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