Pensions - Articles - Cautious Carl and Secure Sue are nervous pension savers

UK pension savers are approaching retirement with caution rather than confidence, with two thirds (69%) favouring security and careful drawdown; either prioritising making their pension last (46%) or phasing into retirement gradually (23%), according to new research.

 

The findings come from the latest wave of People’s Pension’s New Choices, Big Decisions research, which examines how people approaching retirement think about using their pension savings. The study identifies a series of retirement ‘personas’ that capture the different behaviours and mindsets shaping retirement decisions.

 

The research shows the dominant instinct among savers is caution. Nearly half (46%) of UK adults aged 50+ who are not retired and with a pension prioritise protecting their pension or carefully managing withdrawals so their money lasts, while a further quarter (23%) expect to phase into retirement gradually, reducing work and using their pension to supplement income.

 

By contrast, only small minorities feel confident taking full control of their pension savings (8%) or spending them more freely (3%).

 

The research shows that over two thirds (69%) of people approaching retirement prioritise security and stability, focusing on making their pension savings last as long as possible. This group includes ‘Cautious Carl’ (27%), who carefully manage withdrawals to avoid running out of money; ‘Secure Sue' (19%), who prefer predictable income and financial protection even if it limits flexibility; and ‘Winding Down Wendy' (23%), who plan to gradually reduce working hours and use their pension to supplement their income.

 

A further 16% say they would prefer more help navigating retirement decisions. This includes ‘Help Me Harry’ (8%), who want clear guidance and support when deciding how to use their pension, and ‘Overwhelmed Olivia’ (8%), who say pensions and retirement planning are too complicated and often avoid thinking about it.

 

Only a small minority (11%) feel confident taking full control of their pension or spending it more freely. This includes ‘Can-Do Colin’ (8%), who feel comfortable managing their pension savings themselves, and ‘Spend it Sally’ (3%), who plan to enjoy their pension while they are still fit and active rather than preserving it for later life.

 

Taken together, the findings show that while people approach retirement in different ways, caution and a desire for financial security dominate.

 

Choice is valuable, but overwhelming
Despite this caution, three quarters (75%) of UK adults 50+ who are not retired and have a pension say they value the freedom to choose how and when to use their pension savings, and 71% say flexibility matters in case their circumstances change.

However, four in ten (40%) say there is too much choice and they would prefer someone to guide them through the decision-making process. The findings suggest savers are not rejecting choice, but many want clearer and more supportive pathways when making retirement decisions.

Lack of confidence undermines retirement outlook
Just over a third (38%) of over-50s with a pension say they are on track for the retirement they are saving towards. A similar proportion (37%) say they are getting there but may not have saved enough.

Others feel even less certain. One in eight (12%) say they are behind where they should be, while 6% say they do not know what enough savings for retirement even looks like. One in twenty (5%) do not think they will ever be able to retire.

Retirement itself is also changing shape. Only one in five (21%) expect to stop working completely. Instead, almost half (44%) expect to continue working part-time or freelance, while a further quarter (25%) expect to slow down but continue earning.

Kirsty Ross, Director of Proposition at People’s Partnership, said: “Our research shows that a lack of confidence and financial understanding remains a significant barrier for many savers as they approach retirement. More cautious savers often want support and reassurance when making important decisions, but they also value the freedom to choose. The findings in our latest New Choices, Big Decisions research suggest savers are not rejecting choice itself; instead, they want clearer, more supportive pathways into retirement that build confidence, helping them navigate retirement decisions without feeling overwhelmed.”