Less people are taking advice or guidance in 2025 than they did in 2022 and understanding of options, pension products and charges is lower, according to research from the Institute and Faculty of Actuaries.
The research, commissioned to explore attitudes to retirement saving a decade on from the introduction of pension freedoms, found more people are worried about running out of money in retirement than ever before, more people are taking their tax-free lump sum and less people are entering into income drawdown arrangements.
It also finds persistent evidence of gender and social imbalances when it comes to accessing pension savings.
Evidence from 2025 points to less people having their regular expenditure in retirement being 100 per cent met by their pension than in 2022.
But when it comes to attitudes to the introduction of pension freedoms, more people now perceive the changes as beneficial than at the time of their introduction.
The research found only 1 in 5 accessed Government guidance such as ‘Pension Wise’, yet almost one in four people worry that they will make the wrong decision and run out of money in retirement.
The research follows up on similar research conducted in 2022. In 2022, 22 per cent of respondents indicated that they used Government guidance such as ‘Pension Wise’. In 2025, that number has reduced to 20 per cent. Furthermore, 43 per cent did not take any advice/guidance at all, an increase from 40 per cent in 2022. When asked why they did not take guidance or advice, 56 per cent said that they felt that they didn’t need to and 14 per cent said they took advice from family and friends, increases from 51 per cent and 10 per cent respectively in 2022.
In2022, 28 per cent of those surveyed said that 100 per cent of their normal regular expenditure in retirement is being met or is expected to be met by their pension. When asked in 2025, that number has decreased to 23 per cent, with 10 per cent of respondents indicating that less than 25 per cent of normal regular expenditure is being or will be met by their pension.
In 2022 just over half (51 per cent) of those surveyed who had accessed their pension said that they had taken their 25 per cent tax free lump sum – in 2025 that number increased to 60 per cent. For those who did not access a lump sum, less people in 2025 (21 per cent) entered an income drawdown arrangement (26 per cent in 2022) and slightly more (8 per cent) purchased an annuity (6 per cent in 2022).
Despite a high number of respondents claiming advice was not necessary – 56 per cent, an increase of 5 percentage points from 2022, a larger proportion of people showed a worrying lack of understanding of pension products. In 2025, only 25 per cent fully understand the charges they are paying in their DC pension, compared to 26 per cent in 2022.
The figures from 2025 show a gender imbalance, with 64 per cent of men who had accessed their pension since 2015 stating that they did not need to take guidance or advice, compared with 49 per cent of women. Furthermore, where advice was required, men where 7 percentage points more likely to take tailored regulated financial advice, whereas women were 4 percentage points more likely to take generic advice such as Pension Wise and 14 percentage points more likely to ask friends or family.
Alyshia Harrington-Clark, head of strategic policy, Pensions and Lifetime Savings Association, said; “This research paints a familiar picture. Ten years since pension freedoms was introduced, many savers are still unsure about how much they’ll need for retirement and fewer are seeking advice to make informed decisions – yet more are taking lump sums. This worrying gap shows how urgent it is that we deliver a system that helps savers secure an adequate income during retirement.
“Steps being introduced in the upcoming Pension Schemes Bill to help pension providers better support savers in preparing for the financial challenges of later life, not just at retirement but beyond, will help savers make informed decisions and avoid financial pitfalls.
“In terms of improving adequacy, there is critical work to do as part of the second phase of the Pensions Review to consider reforms to the automatic enrolment framework and default levels of contribution. And in the meantime, there is more we can do to help savers help themselves. Many savers underestimate their retirement needs, and without clear guidance and engagement, they risk not achieving their desired lifestyle. Improvements in these areas are key to ensuring more people can secure a financially stable retirement.”
