Many workers approaching retirement do not have a clear understanding of what their pension will provide, raising concerns that they may be unprepared for the decisions they will face, according to new research of employees with a defined contribution pension from WEALTH at work.

The study found that almost two-fifths (39% ) of those aged 55 and over say they do not have a clear retirement income goal, suggesting many could reach retirement without a clear view of what they want or need their pension to deliver. Despite this, around three in ten (28%) within this age group say they would like help setting one, highlighting both a lack of clarity and a clear demand for support as people approach retirement.

This uncertainty is also reflected in how well people understand their pension savings. Around a fifth (19%) of employees aged 55 and over say they are unsure what their pension will be worth when they retire.

Crucially, relatively few are taking steps to build a clearer picture of their finances. Just 27% of employees aged 55 and over have looked at what they might have at retirement.

Despite this lack of clarity, retirement expectations within this age group are shifting, with two-fifths (40%) of employees saying they have already delayed their retirement.

The research also highlights a gap in support for those approaching retirement. Almost two-fifths (38%) of employees aged 55 and over say they do not feel supported by their workplace when it comes to understanding their pension, compared to 30% across all age groups. This suggests that those closest to retirement may feel particularly underserved at a time when clarity and guidance are most important.

This comes despite an increasing focus on how members are supported in accessing their retirement savings. The Pension Schemes Act, introduced in April 2026, is placing greater emphasis on the support available to individuals as they approach and enter retirement, including a move towards more structured retirement journeys and the introduction of pre-selected or ‘default’ retirement income options designed to support decision-making.

This is reinforced by research from the Pensions Policy Institute (PPI), which highlights that well-designed guided retirement solutions can improve decumulation outcomes, particularly when they are simple, well-governed and introduced at the right point in the member journey. The PPI also notes that guided retirement is most effective when treated as an ongoing process, recognising that retirement decisions evolve as circumstances change.

Jonathan Watts‑Lay, Director, WEALTH at work, comments:

“Retirement decisions are complex and highly personal, and experience shows that many people want and need support with this.

“While new legislation is placing greater emphasis on how members are supported at retirement, there is a real risk that generic default pathways could lead people into decisions that don’t reflect their individual circumstances or needs. This is particularly important given that our research shows many people approaching retirement still lack clarity around what their pension will provide.

“Research from the Pensions Policy Institute highlights how guided retirement solutions can help improve outcomes; however, many individuals will also need personalised guidance to help them understand their options and make informed decisions across all of their pensions, particularly as people increasingly build up multiple pots over their working lives.

“Our research also shows that many people are delaying retirement despite not having clarity around what their pensions are worth or having a clear retirement income goal in mind. This highlights the important role of guidance in helping individuals understand whether retirement is affordable and giving them greater confidence in their decisions. It can also help people decide if they may benefit from regulated investment advice.

“Unfortunately, a significant number of employees feel unsupported by their workplace when it comes to pensions. By putting the right support in place, employers can help people to build their understanding and confidence ahead of key decisions.

“We are finding that demand for retirement guidance services is increasing in the workplace. This kind of support, alongside digital tools, is likely to become increasingly important as more structured retirement solutions are introduced.

“Ensuring that support is tailored, accessible and delivered at the right time will be critical to improving outcomes. Working with trusted workplace providers can help ensure this is done in a consistent and effective way.”

Research for WEALTH at work was carried out by Opinion Matters throughout 29/05/26 – 03/06/26 amongst a panel of 2,000 UK workers, aged 18+ who have a defined contribution pension.