Scottish Widows research finds 34% of UK workers aged over 50 have not decided how to access their pension savings, with 46% of women in that group reporting little or no knowledge of retirement options versus 35% of men. Although 81% say seeking support matters, 19% plan to seek advice only in the year they retire.
Roughly one in three UK workers past their 50th birthday is heading toward retirement without a plan for drawing the money they have saved, and the knowledge gap is widest among women, Scottish Widows said.
The insurer's research found 34% of not-yet-retired over-50s have made no decision on how to access their pension pot, and 46% of women in that group described their grasp of retirement options as little or none, against 35% of men. The findings come from a YouGov poll of more than 6,200 adults and a further survey of 1,000 UK adults conducted in February, including more than 2,300 people aged over 50.
"Too many people only fully engage in their retirement planning when they approach the point of taking action," Carolyn Jones, retirement director at Scottish Widows, said. "By then, valuable opportunities to plan, prepare and make informed choices may already have been missed."
The gap between intent and action is the sharpest finding. While 81% of over-50s said it is important to seek support before accessing a pension, 19% plan to seek advice only in the year they retire — leaving little room to adjust contributions, investment risk or the timing of withdrawals. The UK's free guidance channels, the government-backed Pension Wise service and the MoneyHelper website, are designed to close exactly that gap, and pension providers offer retirement calculators that show whether savings are on track. Pension UK's retirement living standards give a benchmark for what different lifestyles cost in retirement.
The stakes are arithmetic. A saver who reaches their late 50s without a withdrawal plan typically faces a choice between an annuity, income drawdown or a mix of the two, and each carries a different exposure to interest rates, investment risk and tax. Deciding late narrows the window to shift asset allocation before income is needed, and annuity rates move with gilt yields, so the price of a guaranteed income can change materially between the decision and the purchase. The gender split matters for outcomes as well as confidence: women in the survey were 11 percentage points more likely than men to report little or no knowledge, a gap that tends to compound over a longer average retirement.
Scottish Widows said the industry is making progress through targeted support, guided retirement journeys, digital advice and workplace education, but argued it needs to go further. The insurer's message to savers is to engage earlier, understand the options and seek advice sooner. "The earlier people think about their income needs, the more choices and confidence they have to achieve the lifestyle they want," Jones said.
For providers, the research points to a demand shift rather than a single product call. If more savers act on guidance before their retirement year, demand for pre-retirement advice, drawdown platforms and annuity quotes should build earlier in the customer lifecycle — a change that would show up in engagement metrics and flows long before it shows up in withdrawals. Savers can check their own position at no cost through Pension Wise and MoneyHelper, and should confirm current rules and thresholds with those services or a regulated adviser, as pension tax treatment and allowances can change.
This article is for informational purposes only and does not constitute investment advice.
