People entering retirement are taking a cautious approach to accessing their pension savings, with many looking to understand the various options available to them.

Aegon interviewed 250 independent financial advisers, who reported several common challenges faced by their clients.

These included knowing how to create a retirement income (75%), understanding all their investment options (64%), and saving enough for retirement (54%).

Income drawdown is one of the most popular options for savers withdrawing an income in retirement.

According to the research, 60% of retirees hold three quarters or more of their assets in this way, compared to 80% who hold a quarter of their assets or less in annuities.

Despite the variety of options, many savers remain cautious in their approach, with 53% focused on risk reduction and only 13% prioritising generating high returns.

Nick Dixon, investment director at Aegon, said:

"Since the introduction of pension freedoms, we've also seen a behavioural shift in the way retirees are choosing to take income in retirement.

"It is crucial that those at or approaching retirement seek financial advice to help build confidence and manage their money."

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