Key findings included:
Overall, respondents felt that improving understanding, capability and access to trusted support would help them make more informed decumulation decisions.
Respondents expressed a need for clearer and simpler information that was more personalised.
Respondents wanted plain-English explanations and tailored guidance as well as earlier financial education.
Understanding of pension access routes varied considerably:
The 25% tax-free lump sum was the most widely understood and often the only option respondents felt confident about.
Knowledge of drawdown, annuities, fees, charges and investment risk was generally low, with many struggling to differentiate between products or assess long-term implications.
While most understood that DC pots were invested, only a few actively engaged with investment decisions.
Understanding of the State Pension was clearer, but its sufficiency was a common concern
People accessed pensions for a range of reasons, including reaching State Pension age, health or work changes, bereavement, divorce or to supplement income.
Health and caring responsibilities were particularly influential, pushing some towards early or unplanned retirement, meaning respondents were accessing pensions sooner than planned.
Kelly Parsons, Head of DC Proposition at Broadstone, said: "The findings lay bare a persistent knowledge and confidence gap among savers, with many people reaching key retirement decisions without the understanding or support needed to make informed choices. Better engagement and earlier financial education are essential if savers are to understand not only the options available at retirement, but also the decisions they can make throughout their working lives to improve their financial resilience, especially as individuals begin to take greater responsibility for managing their DC savings.
"Employers have an important role to play in making pensions more accessible and keeping retirement planning front of mind. Regular communication and financial education programmes can help meet the needs highlighted in the report by providing clearer, plain-English explanations, more personalised support and greater understanding of how DC pensions work, including how savings are invested and the options available.
"The report also demonstrates why reforms such as Targeted Support and Guided Retirement are so significant. By offering more relevant support at key decision points, these initiatives have the potential to help more people navigate complex retirement choices with greater confidence. If delivered well, they should help overcome many of the challenges highlighted by this research and improve retirement outcomes for millions of savers."
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