Digital journeys for defined contribution (DC) members must be “vastly improved” up to the point of making decumulation decisions, Hymans Robertson has warned.
The consultancy revealed pension providers must use technology and help members utilise different products to meet members' needs through retirement, including drawdown, annuities, savings vehicles and property.
Its report noted providers need to assist DC members in minimising future retirement funding risks, especially if they are relying on DC pensions as their main source of income.
Hymans also said members value certainty and flexibility, but "are not well placed to achieve this alongside the consequences of living longer".
Its research revealed online tools were popular, with 31% of those who are not yet retired saying they would be the best form of receiving information about retirement planning.
Another advantage of digital tools is the ability to introduce stochastic projections into retirement planning, Hymans said.
However, the firm said there still seems to be a "degree of apprehension" around using online tools to aid retirement planning, with 42% agreeing they would have concerns over entering pension information online.
The firm said improved digital journeys will help members better navigate the decision-making process of using their pensions to meet their needs and manage risks.
"Building trust with customers through brand awareness, regular communication, and initiatives such as pensions engagement season, coupled with access to their pensions information through pensions dashboards should all help to reduce this apprehension over time," it said.
Head of digital wealth Paul Waters said: "One of the largest challenges we found in digital engagement with financial products was helping consumers to understand inflation. Ensuring that they appreciate the impact of inflation on their retirement income while not trying to negatively influence their decision was a difficult balance.
"Through considered design and extensive customer testing, we addressed this by showing both before and after inflation figures in a simple user interface."
He added: "Consumers need the right support, guidance and protection today; they cannot wait until the future.
"As an industry that is responsible for delivering good outcomes, a slow evolution in the sophistication of products and support available for individuals to manage their retirement income needs is not enough.
"There are key opportunities for providers to help individuals improve outcomes through retirement. Firstly, by taking a more holistic approach to retirement planning and helping individuals understand how their various assets could be used to help them achieve their retirement plans. Secondly, by providing guidance on sustainable income drawdown levels on an ongoing basis through an individual's retirement, reflecting both their personal circumstances and changing market conditions.
"Finally, once pensions dashboards are fully operational, building in the ability to have all pension pots in one place allowing for easier assessment of their overall position and a smoother consolidation process."
