Based on in-depth interviews with 80 people aged between 55 and 70, the research explained that under new pension freedoms, which came into force in April 2015, people fear the pot would be neglected, or they risk "missing out".
However, the study, which examines the impact freedom and choice has had on consumer decisions about retirement, found that people were overwhelmed by the task and worried about making the wrong decision.
The report found it was taking people much longer to make decisions than they anticipated. Over one in five of people who started the process had not made a decision and were still considering six months later. A further one in four decided to do nothing at the current point in time.
It added people were unsure about where to go for information, and confused by conflicting advice and jargon. Only one in 10 used Pension Wise, but those who did rated it highly.
People were also put off seeking help from a financial adviser despite the complexity of decision-making, with 31 out of the 80 speaking to an advisor during their decision making.
Darren Philp, director of policy and market engagement at The People's Pension, said: "People don't need to rush. The new retirement freedoms have given savers the power to access their pension savings earlier, but not necessarily the knowledge or tools to make the right choice for their future."
Alistair Byrne, senior DC strategist at SSGA, said: "It's clear there is more the industry can do to help support people to make the most of their retirement savings.
"We need to better articulate the choices people face - including the option to leave money in the pension scheme until it is needed - and to adopt clearer and more consistent language in our communications."