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According to a new study on financial planning through retirement from Aifa and Prudential UK, the industry, the government and the regulators must adopt an holistic approach to the decumulation market to ensure people maximise their income and wealth in retirement.

The study, which was overseen by an editorial board that included John Gummer, chairman of Aifa and Lord Lipsey, ex-chairman of the Financial Services Consumer Panel (FSCP), has called for an independent review of the decumulation market.

It has also suggested that the government and regulators recognise the importance of the decumulation market in its own right.

Aifa has called for greater investment to be made to help those approaching, or in retirement, and those advising them.

The study said that employers and the government should play a greater role to encourage independent financial advice in the workplace and that the existing £150 per annum tax exemption for advice to employees should be better funded, facilitated and promoted.

There should also be better education for consumers, including a glossary of terms, and clearer guidance for advisers.

Chris Cummings, director general at Aifa, said: "There must be an holistic approach to the decumulation market from industry, government and regulators to ensure that more people maximise their income and wealth in retirement.

"We must make sure that consumers can access good, professional advice when needed and that the industry can provide access to a wide range of services and products to utilise the variety of assets retirees now have.

"It is clear that consumers will understand the risks and rewards of decumulation products better if they are described in consistent language. Our research shows that more than half (56 per cent) do not understand the language used when talking to people in financial services.

"That is why we are calling on the pensions industry to work together to develop a glossary of terms in plain English that guarantees simplicity and clarity for consumers.

"However, we must recognise that consumers want access to advice not just endless information. That is why they turn to IFAs. Government and employers must do more to help consumers receive this advice."