The majority of those approaching retirement lack confidence and critical knowledge about key aspects of their retirement finances, according to research from Standard Life.
The report, titled Retirement Voice study, found that only 9 per cent of over 65s feel confident about managing their retirement finances as a whole.
The study, which was conducted among 6,000 consumers, revealed that over half of over 65s (52 per cent) feel nervous about accessing their retirement funds.
Almost half (43 per cent) of over 65s don’t feel they understand the pros and cons of the various options available to them to access retirement finances, and fewer than one in 10 (9 per cent) are confident about how they will access or draw down their retirement savings.
Dean Butler, managing director for retail direct at Standard Life, said: “It’s rather worrying to see so many people fast approaching or even reaching retirement and yet feeling unsure about important areas of their finances.
“Being as informed as possible is key to being able to make good decisions and protect your financial future in retirement.
“Whether it’s deciding how you’ll take money from your pension, or when to do so, you need an understanding of options available, and the implications of each on your money in retirement.”
The report also found that only 13 per cent of over 65s are confident that they know what options they have to use their pension savings to provide them with an income in retirement.
Over half (54 per cent) of over 65s are also worried they are making bad decisions around using their retirement finances.
Butler said: “At the moment seeking advice can seem inaccessible to many, and we’d like to see advice and guidance extended and made more affordable to ensure people can make well informed decisions.
“Despite this, remember that while retirement can be daunting, you don’t have to do it all alone.”
He urged those unable to speak to an adviser, to use the free guidance offered by Pension Wise.
sonia.rach@ft.com
