Half of pension savers prioritise guaranteed income over flexibility, research reveals
The survey looked at people aged 40 to 75 and found that 46% said guaranteed income was the most important thing for their pension to provide.
Nearly half of people with defined contribution (DC) pensions prioritised a guaranteed income for life in retirement, according to data from the Department for Work and Pensions (DWP).
The survey looked at people aged 40 to 75 and found that 46% said guaranteed income was the most important thing for their pension to provide.
This was even higher among the youngest pre-retirees, with 58% of those aged 40 to 44 and 50% of those aged 45 to 49 prioritising guaranteed income.
The figure also rose to 51% for those aged 70 to 75.
Only 20% prioritised flexibility, while 11% said their main focus was using their pension to bridge the gap to state pension age.
7% preferred flexible income up to a certain age and guaranteed income after that.
The results showed most people valued certainty, either to cover essentials or to keep money management straightforward in later life.
Demand for annuities hit a record £7bn in 2024, up 34% on the previous year, according to the Association of British Insurers.
Related
Nearly half of workers lack confidence in their pension, Penfold finds
Three in five people aged 60 to 65 say State Pension age increase is unfair – Standard Life
Retirement support now key for workplace pension providers, study finds
Later life lending advice should be part of pension lump sum conversations, says Key
Retirement drives surge in demand for financial advice, research finds
Millions face retirement shortfall due to housing and pension policy, SPP finds
30% of people trust AI tools for pension guidance – Scottish Widows
Housing benefit rules discourage pension saving for older renters, says PPI
Retirees hit with £87.2m tax bill after cashing in pension pots, analysis finds
Beverley Building Society enhances SIPP income assessment
UKPG and Sackers welcome DWP plans to cut pension transfer delays
