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Nearly three in 10 have no idea what to do with retirement savings – survey

Nearly three in 10 pension savers have no idea what they will do with their retirement pots, a survey has found.

Some 28% of people do not know what to do with the savings they have built up for their retirement, workplace pension scheme the People’s Pension found.

The research also revealed more than a fifth (22%) of pension savers aged 55 or over do not know when they will retire.

And more than a third (35%) across all age groups are unsure when they will stop working.

Three quarters (75%) would consider taking guidance about how to make their savings last throughout retirement from a pension provider with a legal duty to put their interests first, according to the survey carried out by YouGov.

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The survey presented people with options for using their pension savings during retirement.

Nearly four in 10 (37%) of those who are saving for retirement would be prepared to be guided towards taking a pension that was split between giving them a guaranteed regular income (an annuity) and the rest as a flexible income pot (drawdown) after taking a tax-free lump sum up-front.

A further 35% chose a guaranteed regular income only option after taking the tax-free lump sum.

Phil Brown, director of policy and external affairs at B&CE, the provider of the People’s Pension, said: “This latest research provides further evidence that pension savers are crying out for guidance about how they should approach retirement.”

Over-50s can get free guidance from the Government-backed Pension Wise service to help them understand their options.

More than 2,100 adults were surveyed across the UK in February.