Despite more than a year of publicity, more than a third of people do not know about pension freedoms that give them easy access to their savings.
Chancellor George Osborne launched flexible access to pension savings for the over 55s in April 2015 to a blaze of publicity.
The chance to drawdown pension money for retirement savers to spend how they like has hit the headlines in almost every media organisation.
Providers and the free Pension Wise advice service have handled tens of thousands of inquiries about the changes.
But one of Britain’s largest pension firms, Aegon, claims one in three people still know nothing about the rule change.
Better financial education needed
The firm has also carried out a study that reveals another third do not know how the changes affect their pension income.
As a result, the company is calling on the government to improve financial education.
Aegon found that retirement savers may recognise the term ‘pension freedom’ but do not understand what it means to them.
The statistics come from the firm speaking to more than 4,000 retirement savers of all ages.
The survey showed that age affected awareness of pension freedoms, with the under 35s more likely to have no knowledge of the rule changes.
The results were not all negative, said the firm, as 15% or one in six pension savers had increased their contributions as a result of hearing about the changes.
Motivating saving
Despite this, a fifth are worried they will run out of money in retirement if they draw too much from their pensions and 28% want to know more about how they can find advice about their pensions.
Aegon pensions director Steven Cameron said: “pension freedoms are not only important to the over 50s, but to younger generations planning for their retirement as well.
“Finding out more about pensions helps motivate everyone to save more and to improve their financial habits.
“The earlier people start planning for their retirement, the better and the more likely they will achieve their goals.”
Cameron also explained the survey results highlighted that more needs to be done by pension providers and the government to explain how retirement saving works.
“We need to show individuals how to manage their money and help them with their concerns about running out of cash when they may still have years of retirement ahead of them,” he said.
The research was supported by another survey carried out by financial advisers St James’s Palace.
