The National Association of Pension Funds (NAPF) has published research findings on what pension savers (aged 55-70) plan to do with their retirement in the light of new pension freedoms.

The data, from the Understanding Retirement research programme, shows a high level of support for the reforms, and indicates the top concerns from pension savers.

It found 82 per cent of people are positive about pension freedoms, but 63 per cent worry they will run out of money before they die, 47 per cent worry about being mis-sold unsuitable retirement products, and 44 per cent worry about making bad financial decisions.

NAPF chief executive Joanne Segars said the findings suggest there is still work to be done by the government.

"People seem to have readily embraced the concept of pension freedoms but they are still struggling to understand what this will offer in practice."

"Industry and government will now need to work together to meet growing consumer demand and develop a market for drawdown that works for those with smaller pots," she said.

The latest phase of the research looked specifically at preferred options, spending and savings plans, drawdown, annuities, DB to DC transfers, and the government helpline Pensions Wise.

Ms Segars said the research "provides an early indication of their initial intentions and some of the barriers to overcome."

For example, savers were asked what they are most likely to do with their defined contribution pension savings, and nearly half (49 per cent) will wait or are not sure, compared with 18 per cent who said they will leave it invested and draw a regular income.

Just four per cent said they would take it all as cash.

Three quarters (74 per cent) of respondents who expressed a preference on how they intend to access their savings were planning to leave a proportion of their savings invested and draw a regular income.

Half (50 per cent) of people who have a plan for their savings intend to take some of their taxable pensions savings as cash.

Three quarters (75 per cent) of respondents with a defined benefit (DB) pension were planning to leave their pension savings in their current DB scheme.

This latest consumer research was carried out as part of the NAPF's Understanding Retirement research programme, which examines the nature of retirement and the role of pensions within that.

An online poll of 850 people aged 55-70 with private pensions was surveyed between 25-30 March 2015.
Part of the research programme will also include tracking the savings behaviour of a group of people over the next six months.

First published 09.04.2015

Lindsay.sharman@wilmingtonplc.com