Pension savers struggle with retirement choices

Pension savers are checking their accounts more often, but most still don’t know how they’ll use the money when they retire.

The shift comes from a survey of members in TPT Retirement Solutions’ defined contribution plans. In 2026, 45% said they review their pension regularly, up from 38% in 2024. The share who never check their balance dropped from 21% to 11%. This increase in engagement spans both active contributors and those with deferred pots, suggesting a broader cultural change in how individuals interact with their retirement savings. The decline in complete disengagement—particularly the near-halving of those who never review their pension—indicates that even previously passive savers are beginning to pay attention, though the reasons for this shift remain unmeasured in the survey.

More activity, same uncertainty

Active members are also looking beyond the balance. Over the past year, 68% checked their pension’s current value, compared with 59% two years earlier. Half now estimate the income their savings might generate, up from 44%. About one in three reviewed their retirement options or ways to access the money, an increase from 24%. The data reveals a growing curiosity about the mechanics of retirement planning, not just the size of the pot. For instance, the proportion of members who adjusted their target retirement age rose from 11% to 16%, reflecting a deeper consideration of when and how they might stop working. Additionally, 24% of active members explored their investment choices in 2026, up from 16% in 2024, signaling a heightened interest in how their contributions are allocated and the potential risks or returns associated with different asset classes.

Yet the decisions themselves remain unresolved. Among members 50 and older, 47% don’t know if they’ll take a lump sum. Of those who won’t cash out everything at once, 52% are unsure what to do with the rest. Only 22% have paid or plan to pay for professional financial advice. The uncertainty is particularly striking given that this age group is closest to retirement and faces imminent choices about how to convert savings into income. The reluctance to seek paid advice may stem from cost concerns, lack of trust in financial services, or a belief that their savings are too modest to warrant professional input. Meanwhile, the 52% who are unsure about managing the remainder of their pension after a partial withdrawal highlight a critical gap in understanding how to structure withdrawals, manage tax implications, or balance longevity risk with spending needs.

That gap leaves many without a clear plan. The survey found 35% of members support guided retirement products, while only 4% oppose them. One such product, offered by TPT, converts a pension pot into an inflation-linked income for life without requiring the saver to make ongoing choices. The appeal of these products lies in their simplicity: they eliminate the need for retirees to monitor markets, adjust withdrawals, or worry about outliving their savings. The 35% support figure suggests a significant minority are open to outsourcing decision-making, though the majority remain either undecided or prefer to retain control. The low opposition rate implies that even those skeptical of such products do not actively reject them, leaving room for education and awareness campaigns to shift preferences further.

Related: Making the most of your pension dashboard

Engagement isn’t enough

Philip Smith, TPT’s defined contribution director, called the rise in engagement “encouraging” but noted it doesn’t guarantee better outcomes. “Many remain uncertain about how they will use their savings at retirement,” he said. “The industry needs to simplify pathways—providing clear information for those who want to decide, and good default options for those who don’t.” Smith’s observation shows a paradox in pension engagement: increased activity does not necessarily translate into informed action. For example, a member who checks their balance more frequently may still lack the tools to interpret how that balance translates into monthly income, or how inflation might erode its value over time. The call for simpler pathways reflects a recognition that complexity itself can be a barrier, particularly for those without financial literacy or the time to handle detailed retirement systems.

Similar patterns have appeared in other markets where automatic enrollment boosted savings rates but left savers unsure how to turn balances into income. The difference now is that more people are asking the question before they reach retirement age. In countries like the U.S. and Australia, where defined contribution plans have largely replaced traditional pensions, retirees often struggle with the same uncertainties: how much to withdraw annually, how to manage sequence-of-returns risk, and whether to annuitize a portion of their savings. The U.K.’s experience mirrors these challenges, with the added complication of a regulatory environment that has evolved rapidly, introducing options like pension freedoms in 2015 while leaving many savers unprepared for the responsibility those freedoms entail.

The survey didn’t ask why engagement rose, but the timing coincides with a period of higher interest rates and market volatility. Those conditions may have prompted more people to log in and check their statements, even if they didn’t act on what they saw. The Bank of England’s series of rate hikes between 2022 and 2024, for example, likely made pensions more salient by increasing the returns on cash-like investments and altering the relative attractiveness of annuities. Market fluctuations, such as the sharp downturn in 2022 followed by partial recoveries, may have also driven savers to monitor their portfolios more closely. However, the survey’s silence on motivations means the link between external economic factors and engagement remains speculative. It’s possible that digital improvements—such as more user-friendly pension dashboards or mobile apps—played a role, though the data does not explore this angle.

TPT’s research was based on responses from about 1,200 active and deferred members in 2026, compared with a similar sample in 2024. The sample size, while sufficient for identifying broad trends, does not capture the full diversity of the U.K.’s pension setting, which includes millions of savers across different providers, income levels, and age groups. The findings are specific to TPT’s membership, which may skew toward certain demographics or industries, potentially limiting the generalizability of the results. Nonetheless, the consistency of the trends—rising engagement alongside persistent uncertainty—aligns with broader industry observations and suggests that the challenges identified are not unique to TPT’s savers.