“Consumers lack knowledge and show over-stated confidence in their abilities to make good decisions and this is likely to have consequences on their outcomes in retirement for many years.”
While the study showed Britons are clued up about the 25 percent tax-free lump sum available through defined contribution pensions, there are some other areas where there is less confidence.
More than a third of prospective drawdown users said they knew nothing about the funds they are currently invested in for their pension.
An additional third said they were unsure about this topic, creating concern for pensions experts.
Pension: Monthly contributions for a £100k pot (Image: EXPRESS)