Around 10 million pension holders risk running out of money in retirement because they know nothing about the pros and cons of each product option.
The LV= Wealth and Wellbeing Monitor, a quarterly survey of more than 4,000 UK adults, also reveals 22% of people planning to give up work in the next five years know nothing about their product options at retirement.
Some 10 million people also do not know how falls in the stock market can affect their retirement savings. Some 9.9 million do not know how to ensure they do not run out of money when they retire.
Half of people with a pension of more than £100,000 do not know much about how to take money from their pension in a tax-efficient way, the survey reveals. Meanwhile only 34% of married people understand how to ensure their spouse will be left with enough pension if they die.
Only 39% or 10.6 million pension holders are planning to take financial advice when they retire, with 31% - 8.3 million - planning to manage their own finances. Just over half - 52% - of people with assets of between £100,000 and £500,000 excluding property are planning to take financial advice.
“People planning for retirement should think hard about what they want to do when they eventually stop work,” said LV= managing director of savings and retirement Clive Bolton. “It is helpful to have a good idea of the lifestyle you want, how much it will cost and how you are going to pay for it. The more enthusiastic you are about retiring, the more likely you are to develop a robust retirement plan.”
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