Savers are not squandering their tax-free lump sums under Freedom and Choice but are taking a more cautious approach to retirement, according to Prudential research.
Average retirement income has hit a record high of £19,900 but half of employees planning to retire this year believe it won't be enough, research by Prudential reveals.
Pension savers in their final years of work are concerned they will not be able to match the living standards of those who have already retired, according to research by Prudential.
Occupational pension scheme membership hit yet another record high in 2016, with more than 39.2 million saving through their workplace, latest Office for National Statistics (ONS) data reveal.
Some 18% of earnings need to be saved each year to achieve an adequate income, an International Longevity Centre (ILC) report has concluded.
Plans to raise the state pension age (SPA) to 68 seven years ahead of schedule by 2039 has been welcomed by the industry as a necessary move to reflect rising life expectancy and keep costs affordable.