The asset management industry has been gearing up for the changes by launching a raft of new products aimed at delivering income in retirement to address the fact that retirees no longer have to buy annuities.

But recent research by Octopus Investments reveals that in spite of the overhaul of the pensions industry, surprisingly few people intend to prioritise retirement planning this year.

The research among 2,184 adults found that while those in the East Midlands were most likely to invest this year, only 7 per cent would focus on retirement planning. Londoners were the most likely to address retirement planning in 2015 at 15 per cent, according to the research.

A JPMorgan Asset Management survey of 1,000 people shows a lack of knowledge about income investing among UK investors, which may ring alarm bells given that finding income in retirement is likely to become a priority for many.

The research found that while 62 per cent claim to be seeking some income, only 44 per cent of investors surveyed were able to explain what the term ‘income investing’ means.

Jasper Berens, head of UK funds at JPMorgan Asset Management, notes: “It’s surprising that familiarity with income investing among UK investors is relatively low. Generating income whilst balancing risk is only going to become more important as the pensions freedoms come into force.”

Given its track record for delivering income to investors, the investment trust industry is hoping to corner the retirement market.

According to the Association of Investment Companies (AIC), 32 per cent of its members are paying a quarterly dividend to their investors – this compares to 17 per cent five years ago. At the start of 2014, only one investment trust, F&C Commercial Property, paid out a monthly dividend but that has since increased to four. The AIC reports that 69 investment trusts pay dividends biannually, while 60 trusts pay out annually.

There is also some indication that those approaching retirement are saving more. Prudential’s most recent research suggests that expected retirement income has reached a six-year high.

The research shows that those who are planning to retire this year have an average expected annual retirement income of £17,000 a year, on average more than £1,200 higher than last year’s retirees.

Vince Smith-Hughes, retirement expert at Prudential, says: “Some of the increase in expectations we’re seeing could be attributed to the media coverage over recent months on the changes to the pension rules. The challenge for providers and advisers is to help these pensioners to plan properly in order to benefit from the new freedoms.”

He continues: “The rule changes don’t alter the basic principle of needing to secure an income that will last throughout retirement. The best way to secure this is for people to save as much as possible as early as possible in their working lives.”

So there is plenty of work for the industry, advisers, and indeed investors to do in order to understand and take advantage of the pension changes. Whether investors will take up the challenge remains to be seen.

Ellie Duncan is deputy features editor at Investment Adviser